Stricter job-search checks increase employment, Swedish study finds

Jobseekers whose activity reports faced stricter checks found work faster, according to a Swedish study. The chance of employment within four months rose by 1.1 percentage points, about 3%, when researchers compared relatively strict and more lenient reviewers.

The IFAU study, released on Wednesday, also found that applications increased by just over 5% in the month after the first review. Earnings rose, with no evidence of lower pay in the first job.

Rejected activity reports led to more contact with Arbetsförmedlingen and a greater risk of warnings or withheld benefits. Researchers could not separate which of these factors drove the results.

The study covered more than 100,000 people during 2014–2017. All were at least 25, received unemployment insurance and had no previous sanction. It does not establish the same effect for every unemployed person.

Effects appeared sooner among people with stronger job prospects. For those with weaker prospects, they emerged later but lasted longer.

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