Multi-Year Project on Increasing Labour Market Participation Among Vulnerable Groups

To ensure a well-functioning labour market and an adequate supply of labour in the Nordic region, it is essential to increase the participation of individuals from vulnerable groups. Data show that these groups – including young people, seniors, immigrants, and individuals with health issues or disabilities – are significantly further away from the labour market compared to the rest of the population. Moreover, little progress has been made in improving their labour market attachment over the past decade.

In response to this challenge, the Nordic Council of Ministers – through the Ministers for Nordic Co-operation (MR-SAM) and the Labour Market Committee under MR-A – has, over a five-year period, funded a strategic multi-year project aimed at identifying ways to strengthen labour market participation among vulnerable groups. The project has been carried out by HBS Economics and VIVE, and has resulted in the publication of five analytical reports. The final report was launched in February 2025 at a concluding digital event, opened by the Finnish Minister of Employment, Arto Satonen, where Nordic stakeholders also discussed the policy recommendations derived from the project.

The ambition is that the project’s insights and evidence-based recommendations will inform Nordic policy development and support labour market actors in designing more inclusive labour market measures – ultimately enabling more individuals from vulnerable groups to participate actively in working life.

Below is a summary of the five reports published as part of the project, and links to the relevant reports:

Report 1: "Labour market attachment in the Nordic countries"

This report examines the degree of labour market attachment among key vulnerable groups traditionally at risk of exclusion: young people, older workers, immigrants, and individuals with health problems or disabilities.

Report 2: "Barriers to employment for vulnerable groups in the Nordic countries"

Building on the first report, this publication explores the complexity of employment participation among vulnerable groups and introduces a framework to identify and analyse the barriers they face across the Nordic labour markets.

Report 3: "A multitude of barriers - analysing components in joblessness to inform policy in the Nordic countries"

This report deepens the analysis by investigating the prevalence and combinations of employment barriers among individuals with limited or no labour market attachment. It also proposes a categorisation of individuals based on the specific types of barriers they encounter.

Report 4: "What works and for whom? An overview of employment instruments among vulnerable groups in the Nordics "

The fourth report reviews existing literature on employment instruments and assesses their effectiveness across different subgroups of vulnerable individuals. It serves as an evidence base for the policy recommendations presented in the final report.

Report 5: "Increasing Employment Among Vulnerable Groups – Summary of Insights and Recommendations for the Nordic Countries"
The final report presents a set of concrete, evidence-based policy recommendations aimed at improving labour market inclusion for vulnerable groups across the Nordic region, bridging the gap between research and policy implementation.