BIC7. Lack of working experience and skills: Having little or no working experience and/or a lack of skills can be a barrier to employment. Among immigrants in Finland, lacking work experience is a hindrance to employment. Therefore, the period immediately after immigration seems crucial for accumulating work experience in the host country (Busk & Jauhiainen, 2021). Further, Norwegian researchers have used administrative data and a quasi-experimental design to show that lack of qualifications and skills negatively affect the employment opportunities among young people with mental health problems (Markussen & Røed, 2020).
BIC8. Care responsibilities: Some individuals face difficulties in participating in the labour market due to their responsibilities for taking care of children or elderly relatives. Most likely, this is a smaller barrier to employment in the Nordic countries today compared to e.g., Southern Europe, due to the fact that responsibilities formerly considered to be familial are now managed, to a relatively large extent, by the Nordic welfare states. Nevertheless, research conducted in Finland has indicated that such responsibilities do pose an employment barrier, particularly for immigrant women, who are more likely to stay home for longer periods following childbirth (Tervola, 2020; Busk & Jauhiainen, 2021). Moreover, the persisting gender employment rate differences in all the Nordic countries (i.e., men being employed to a higher extent than women are) might also be due to, inter alia, gendered differences in societal expectations to care responsibilities.
Barriers related to incentives and motivation (BIM)
Barriers related to incentives and motivation cover, among other things, systems or benefits that provide an alternative to employment and affect the economic incentives to work. This can be through social security benefits or retirement and disability benefits as alternatives to work. This category further contains barriers related to the motivation of the individual, which can be governed by general or group-specific social norms.
BIM1. Insufficient economic incentive to find education/employment: Outside options, such as cash benefits systems, can prevent people from entering employment or push individuals out of employment. Based on the literature review, this seems to be an employment barrier for each of the four traditional target groups. First, research from Finland based on administrative data demonstrates that seniors increased their employment when extended unemployment benefits offered to seniors until retirement were postponed by two years from age 55 to age 57 (Kyvrä & Pesola, 2020). Second, researchers from Sweden use register data to show that large alternative income sources (such as unemployment benefits) decrease the likelihood of employment among immigrants in Sweden (Friedrich, Laun & Meghir, 2021). Third, in an analysis from the Danish Ministry of Children and Social Affairs on vulnerable young people, it is shown that decreasing the cash benefits for this group increases their employment (Børne- og Socialministeriet, 2016). Lastly, in an extensive but unsystematic international literature review from Norway, the authors hypothesised that generous health-related benefits combined with less generous unemployment benefits potentially lead to an increased number of persons on health-related benefits (Fevang, 2020).
BIM2. Retirement and pension benefits, incl. early retirement and disability benefits: Retirement and pension benefits provide an alternative way of generating income relatively to employment in a salaried job. This includes the lack of economic incentive to work due to receiving retirement benefits and alternative sources of pension benefits, such as early-retirement benefits. Research from Finland on persons with disabilities finds no relationship between the amount of disability pension and the probability of working among full-disability pensioners. However, partial-disability pensioners with average disability pension seemed to work more than comparable groups, which can be explained by the existing earnings limit affecting the probability of working while on a disability pension (Polvinen et al., 2018). Research from Norway on seniors provides another example of how economic incentives related to retirement benefits can be an employment barrier. This study shows that the effect of a retention bonus of 20,000 NOK reduced the probability of early retirement by 5.7 pct. (Hermansen & Midtsundstad, 2018).
BIM3. Mismatch between labour market and personal values: Differences between expectations in the labour market and personal values may constitute a barrier for some types of individuals. A study from Finland based on 28 interviews in one region in Finland examines why long-term unemployed young people give up their search for work. The researchers show that wage employment is not necessarily an important value for young people, and other aspects of life – such as leisure or other activities – may dominate in a period of a young person’s life (Ylisto, 2018).
BIM4. Lack of motivation: Lack of motivation constitutes a barrier since it may hinder individuals from entering employment, but it can also push people out of employment. Research from Finland shows that several key factors affect the retirement decisions of seniors, one of them being motivation (Nivalainen, 2022). Research from Denmark shows that older persons with disabilities have lower work motivation and lower employment rates than younger persons with disabilities (Bredgaard & Shamshiri-Pedersen, 2018). This is confirmed in research from Iceland, where persons with disabilities fear that they will not live up to the expectations and demands of the workplace, which discourages these individuals from searching for a job. This phenomenon is called internalised ableism (Júlíusdóttir et al., 2022).
Further, research from Denmark shows that lack of motivation may be a barrier for some immigrants, especially some newly arrived immigrant women. For these women, a low level of job motivation may stem from their origin in a different culture with different gender roles, where working outside one’s home and supporting oneself financially is perceived neither as women’s role nor as their responsibility (Jakobsen et al., 2021).
Barriers related to the employer and labour market structures (BEL)
Barriers related to the employer and labour market structures relate to issues such as the hiring process, working environment, and work tasks, as well as (macro)-economic factors/business cycles and demand for labour that can affect the employment of the target groups.
BEL1. Costs associated with low productivity: Employers might experience high costs (wage, sick pay, annual leave, etc.) relative to the productivity that employees bring to a job. A Swedish study using combined register and survey data has found this to be a barrier for young individuals in Sweden (Saez, Schoefer & Seim, 2019). Further, another study from Sweden shows that persons with disabilities may experience difficulties finding employment due to the employer’s perception of their low work capacity relative to their relatively higher labour costs (due to, for example, needs for special adaptations of the work environment, instruments, etc.) (Angelov & Eliasson, 2018).
BEL2. Information gaps and risks related to hiring employees: It is important for employers to have access to realistic information about characteristics, productivity, and health restrictions of potential employees, such as those of people with minor disabilities, in order to make informed hiring decisions. Information gaps between employers and employees may lead to failed recruitments. In research from Finland, an electronic survey among employers is used to understand the recruitment of individuals with partial disabilities. The Finnish researchers identified the following barriers. 1) It is important for the employer to be provided with realistic information about the characteristics, productivity, and restrictions of people with partial work ability to support the recruitment process. 2) For employers in small companies, financial risks are a potential barrier due to the cost of absence, including sick pay and substitute personnel (Ala-Kauhaluoma et al., 2017). Another Finnish study, using survey data answered by employers, demonstrates that some employers are worried about several risks when considering hiring seniors (i.e., individuals older than 55 years). Some employers are concerned about the risk of sickness absence or the risk of a short remaining working life (Järnefelt et al., 2022).
BEL3. Discrimination: Several studies also demonstrate discrimination towards several of the traditional target groups (e.g., in the hiring process). For example, research from Denmark shows that individuals with a Middle Eastern-sounding name are less likely to be invited for a job interview (Dahl & Krog, 2018). Research from Finland and Iceland finds similar results, i.e., that job applicants with migrant background are less likely to receive a response from employers compared to applicants with ethnic majority names (Ahmad, 2020; Kristjánsson & Sigurðardóttir, 2019). In Finland, some persons with disabilities experience often being offered employment primarily through special arrangements, involving only a symbolic wage on top of their disability pension – something these individuals experience as discrimination (Hästbacka & Nygård, 2019). Discrimination against persons with disabilities is also identified as an employment barrier in Iceland. In this study, HR managers received CVs of individuals with the same qualifications but with different levels of mobility disabilities. Applicants with no disabilities were more likely to be hired than applicants with identical qualifications and some minor mobility disability (Júlíusdóttir et al., 2022).
BEL4. Working conditions: Having a stressful and physically demanding job can decrease the satisfaction of working and thus push people into unemployment. For example, research from Sweden has found an association between working time, dissatisfaction with working hours, challenging job requirements, and retirement age for seniors (Nilsson, 2020). Further, Danish researchers have shown that several work-related factors influence the planned retirement age. These factors include dissatisfaction with working hours, stressful work, and (lack of) influence on one’s own work situation (Amilon & Larsen, 2019).
BEL5. Lack of local employment opportunities: Geographical place of residence can affect employment through, e.g., fewer local employment opportunities. A study from Finland finds disabled individuals living in rural areas to have less work participation after vocational rehabilitation (Leinonen et al., 2019). Researchers have also found that lack of suitable work for people with minor disabilities and a reduced work capacity is a problem in large companies (Ala-Kauhaluoma et al., 2017).
BEL6. State of the economy: The state of the economy can be a barrier for a number of different reasons. For example, research from Finland demonstrates that the social and economic conditions during the year of immigration have a lasting impact on future working years for the immigrating individuals (Busk & Jauhiainen, 2021).
Barriers relating to public services (BPS)
This group of barriers relates to the effectiveness of the public employment services and other relevant services at state, regional, and municipal level. Moreover, we include barriers related to the use of the public employment services in this category.
BPS1. Low effectiveness of public services: Lack of collaboration between systems within the public employment services can pose a barrier to employment for certain groups. For example, Danish research points to problems in the municipal youth services relating to a lack of coherence and coordination among the many different institutions and actors involved in assisting vulnerable young people, even though these institutions (e.g., job centres and youth guidance departments) in many Danish municipalities are located in the same building. Further, this research highlights lack of common targets and approaches, lack of integrated IT systems, and lack of sufficiently early interventions as potential employment barriers that all result in low effectiveness of the public employment system (Bolvig et al., 2019). Cross-Nordic research underlines that insufficient coordination and integration across public authorities aiming at assisting vulnerable youth is a problem that exists in several Nordic countries (Frøyland et al., 2022). Moreover, Finnish research takes a qualitative approach to demonstrate that low effectiveness of the public services also constitutes an employment barrier for disabled persons in Finland. The interviewed individuals expressed that they, among other things, lacked knowledge regarding rights about services and that this was often further complicated by extensive bureaucracy (Hästbacka & Nygård, 2019). Another paper from Finland uses administrative data to show that seniors to a larger degree participated in services that have a low impact on later employment (Aho et al., 2018).
BPS2. Collision between public services: For young people specifically, research from Denmark finds that there can be a collision between the health professionals prioritising psychiatric treatment above employment and caseworkers in the job centre prioritising either education or employment over treatment related goal (Bolvig et al., 2019). A qualitative study covering Iceland, Faroe Islands, and the northern part of Norway confirms this finding. Hence, interviews with practitioners within the relevant welfare authorities in services for young people show, among other things, that the services typically exist in specialised silo organisations, something that limits their ability to attend to the complexity of problems characterizing this group (Anvik & Waldahl, 2017).
BPS3. Lack of participation in public employment systems: For the public services to make a difference and move people into employment, it is important that people use them. Research from Finland found that unemployed seniors (i.e., individuals older than 55 years) participated less in services and activation measures than younger individuals (Aho et al., 2018). The same pattern is found in Denmark. Seniortænketanken (2018) shows that the participation in active labour market programmes is slightly lower for seniors than for other age groups among unemployment benefit recipients. One explanation is that some groups, here seniors, get fewer offers from the public employment services. Another explanation is that some groups are not willing to participate in the activities offered by the public employment services (and succeed in avoiding participation) (Aho et al., 2018).