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Nordic Lessons for an Inclusive Recovery? Responses to the Impact of COVID-19 on the Labour Market

image of Nordic Lessons for an Inclusive Recovery? Responses to the Impact of COVID-19 on the Labour Market

This report examines the impact of the COVID-19 pandemic on Nordic labour markets and the associated policy responses undertaken in the areas of unemployment benefits, job retention schemes, active labour market policies and skill development policies. The report discusses the details of these policy measures across Nordic countries and draws out the main lessons learned from their response to the crisis. Finally, the report provides a set of key recommendations in each policy area to enable Nordic countries to build more inclusive and resilient labour markets in the post-pandemic period.

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The labour market impact of the COVID‑19 crisis in the Nordic countries

This chapter describes the labour market impact of the COVID‑19 crisis in Nordic countries from an international perspective. As in most OECD countries, Nordic countries experienced a fast recovery of their labour markets. At the height of the crisis, unemployment rates increased more in Nordic countries than in many other European countries, but the increases were generally not more persistent. The contraction in employment rates in Nordic countries was similar to that of other European countries and generally short-lived. Nordic countries, however, exhibited varying degrees of resilience – with Sweden and Iceland experiencing slower recoveries. The differential impact of the crisis across industries translated into an unequal impact on groups of workers. Thanks to the robust recovery, much of the unequal impact had been reabsorbed by early 2022. Nevertheless, young people and workers without tertiary education felt the effects of the crisis more strongly and for longer across all Nordic countries.

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