In early August, the Swedish Labour Ministry announced that the country was facing its highest unemployment rate in a decade, excluding the pandemic period.
With major companies in Sweden, such as Northvolt and Ericsson, announcing layoffs this year, here's what you should know if you believe you'll be facing one soon (editor's note: this article was originally published before the Northvolt layoffs had been announced).
Layoffs: What you need to know in terms of immigration
The implications of getting laid off for your work permit can be significant, Saaya Sorrells-Weatherford, co-founder of the relocation consultancy Emigreat, told The Local.
When you're laid off, you have three months from your last date of employment to find a new job and submit a new work permit.
"People often approach the situation as if they have three whole months. They don't," Sorrells-Weatherford pointed out.
"Before a company can sign a contract with an international employee or initiate a work permit application, they must advertise the job position on Arbetsförmedlingen [Sweden's Public Employment Service] for at least ten days.
"The work permit application needs to be submitted and paid for within the three-month period, which means the employee's part of the application must be completed in advance," she said.
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Paying attention to the deadlines is key.
"You should account for three weeks to be on the safe side," said Sorrells-Weatherford.
This calculation includes 10+ days of job advertisement, the employer starting the application by submitting the work terms to the union, waiting for a response, and then completing the employee part of the application.
"In reality, this gives you just over two months to find a new job," she warned.
The pain points in Sweden's current layoff system
The current framework for handling layoffs in Sweden has several pain points that the government could improve, according to Sorrells-Weatherford.
Firstly, the three-month period to find a new job after being laid off is "unreasonably short", especially considering the lengthy recruitment process, even for Swedish nationals.
"It should either be six months, or it could be proportional to how long someone has held a work permit, as that indicates the level of uprooting it would take to have to leave," Sorrells-Weatherford said.
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Another issue is the requirement for dependents of permit holders to leave the country to apply for their own standalone permit.
"It makes no sense and is simply disruptive. The government should offer better options for track changing from inside Sweden, especially if the person has been compliant throughout," she said.
Additionally, the expert warned that, while unrelated to layoffs, there is a significant problem with the treatment of students who receive residence permits for higher vocational education.
"I find the fact that students who get a residence permit for higher education in higher vocational education are unable to apply for work permits or look for work after studies permit from inside Sweden to be appalling," said Sorrells-Weatherford.
"It's devastating for the students to find out they have to leave Sweden to apply for a work permit – especially because the wording online implies that all student permits for higher education are the same – and such a talent drain on Sweden."
Tips for international workers
There are several things workers can – and should – do to hedge against the negative effects of layoff on their career and life in Sweden.
The Swedish job market relies heavily on networking, making it a powerful tool for finding employment.
"Keep your CV updated and never stop attending networking events or creating contacts," Sorrells-Weatherford advised.
This is crucial because you never know when you may be laid off, and your situation becomes more risky if your ability to stay in Sweden is based on employment.
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The expert also emphasised the importance of tracking your immigration paperwork and deadlines.
"I've seen too many cases where someone gets laid off and thinks they have three months to find a new job and apply for a new work permit, but their current permit actually expires earlier than that," she said.
If you receive a termination notice, Sorrells-Weatherford strongly recommends contacting a labour or immigration lawyer immediately.
"As a foreigner, you are unlikely to know the Swedish employment system well enough and may agree to something that shortens your time in Sweden," she said, adding that consulting a professional ensures that you are working with accurate information and not relying on anecdotes, which can be crucial in such situations.
Furthermore, even when your job is secure, it's a good idea to look at the annual government list of occupational shortages.
"These are job positions that the government says we don't have enough local competence to fulfill," Sorrells-Weatherford told The Local.
Reviewing this list can help you identify areas adjacent to your current work or education, allowing you to upskill in your free time and increase your employability in Sweden, she noted.
Psst! If you're looking for a job in Sweden, check out some of the best tips our readers shared on cracking the career code.
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