The scope of active labour market policies in local labour market programmes in Swedish municipalities – driven by needs or values?

This study takes its vantage point from the increasing decentralisation of welfare by examining the growing trend of welfare states implementing active labour market policies (ALMPs), with a focus on Sweden’s municipal autonomy. Local governments often maintain their own local labour market programmes (LLMPs) despite having no central requirement, yet efforts vary significantly. Research explaining these variations is limited, but this study uses a new dataset to explore the factors driving the scope of LLMPs. It tests whether needs-driven structural characteristics or partisan value motives influence municipal ambitions. However, the findings indicate that neither unemployment levels, education, social welfare needs nor political rule explain LLMP variations. Instead, municipal size, tax rates and organisational factors play a more critical role. These results challenge conventional assumptions, revealing that ALMPs are shaped more by structural and administrative conditions than by local needs or political ideology.