Sollentuna local council in the outskirts of Stockholm has proposed a special wage agreement for unemployed young people under the age of 25 - giving them 75 percent of the normal salary for work in the public sector.The program is to be stretched over a one year period and the council hopes the system will spread nationwide.
The authorities argue that it's better to provide jobs for the high number of unemployed among the youth - rather then having them sit at home on welfare benefits -
However, union leaders in the local public service sector warn that this could set a dangerous precedent - encouraging councils facing tight budgets to cover normal services with lower salaries.
The unions admit that if the program becomes a reality, it would be easier for those young people who get those first jobs to get another with regular salaries - since it is so hard for first-timers to enter the labor market.
Meanwhile, unemployment officials warn that many young people not in the voluntary unemployment insurance program can be left without any income if they lose their jobs.
Statistics show that the number of young people under 25 in the program has been dropping since insurance fees were increased five years ago. Now only one in three are covered - compared to every other person a few years ago.