Increasing employment among vulnerable groups

Much has been said about improving labour market attachment among vulnerable groups, yet progress remains limited, especially among young people. The Nordic countries generally outperform the EU27 in labour market inclusion for vulnerable groups. However, significant challenges persist. Vulnerable groups continue to experience lower labour market participation rates, and substantial employment gaps remain despite political focus, various reforms, and locally anchored initiatives. This constitutes a challenge for both society and individuals.
Although a considerable body of literature and reports exists, the evidence on what works, and for whom, remains limited, especially for the most vulnerable groups in the Nordic labour markets. This knowledge gap arises, in part, from the heterogeneity within vulnerable groups and the complex employment barriers they face, making scalable solutions difficult to design and implement.
Many experts point to the complexity and heterogeneity within this population as making it difficult to design effective interventions. As a result, individualised and holistic approaches have become the default answer. While these approaches have merit, they often serve as a comfort zone, hindering the development of scalable and sustainable programmes for vulnerable individuals.
This project aligns with the Nordic Council of Ministers’ strategic efforts to improve labour market participation among vulnerable groups (Nordic Council of Ministers, 2022). In this report, we aim to bridge the knowledge gap by presenting concrete, evidence-based policy recommendations to improve labour market inclusion among vulnerable groups.