The EMN study from a Swedish perspective: A national report on illegal employment

The study “Illegal employment of third-country nationals: 2017–2022 situation analysis” has been conducted in 21 EMN Member Countries. The Swedish national report is being published in addition to the European comparative study. It highlights both concrete measures and remaining challenges in combating illegal employment. Information campaigns, enhanced inter-agency cooperation, increased unannounced inspections and doubled fines for employers are among the measures taken in Sweden. The process initiated in 2017 is ongoing.

Situation in Sweden: Enhanced cooperation between authorities

In recent years, several new initiatives and concrete measures have been presented in Sweden aimed at preventing and combating work-related crime affecting the migration sector in various ways. The measures often focus on the role of employers and take into account that labour migrants are, as a group, at a higher risk of ending up in illegal employment. At the European level, Sweden sets a good example among EMN Countries with increased inter-agency cooperation spanning several policy areas.

The inter-agency cooperation against work-related crime is led by the Swedish Work Environment Authority together with eight other agencies. Efforts commenced in 2018 and have gradually been expanded. Several joint regional centres have been opened. Since 2018, fines imposed on employers engaging workers illegally have doubled.

In addition, several government initiatives are in progress, aimed at preventing and combating abuse. The Swedish Migration Agency is working together with, among others, the Swedish Public Employment Service, the Swedish Social Insurance Agency, the Swedish Tax Agency and the Swedish Police Authority on issues such as population registration and information on coordination numbers, improved information transfer and identity fraud.

Within the Swedish Migration Agency, extensive efforts are being conducted to detect abuse of internal processes to varying degrees. These efforts are being conducted in cooperation with other authorities with the aim of combating organised crime, preventing trafficking in human beings and work-related crime and preventing the exploitation of the welfare system.

Insights from the Swedish national report: Concrete measures

The Swedish national report describes how authorities and other stakeholders are working to combat illegal employment. There has been a clear trend in this area since 2017.

There has been a significant increase in measures aimed at detecting illegal employment; in particular, the number of workplace inspections conducted has risen. In 2018, about 500 inspections were conducted, while in 2022 the figure was about 2,600. Inspections have been conducted progressively across several sectors, with the annual total of financial penalties imposed (the special charge) having risen sharply from about SEK 560,000 in 2018 to about SEK 6.1 million in 2022.

• Legislative changes – concrete measures in connection with legislative amendments, primarily by the Swedish Police Authority, the Swedish Migration Agency, the Swedish Work Environment Authority and the Swedish Tax Agency, have yielded results.
• Increased knowledge and awareness – information campaigns have been conducted aimed at providing information on legislation and the consequences of breaching the rules, sharing experiences, as well as explaining the obligations and rights of employees and employers.
• Strengthened inter-agency cooperation is viewed positively by the stakeholders involved, although certain challenges remain. Confidentiality legislation, information exchange and increased cooperation with the business community are cited as areas for improvement.
• Tools for reporting illegal employment – a number of authorities have introduced features on their websites through which suspected work-related crime can be reported.
• Illegal employment a focus of public debate – sectors facing issues of illegal employment have been identified, including the construction industry, the hotel and restaurant sectors, as well as car repair workshops. The circumstances of people in the Swedish labour market that are beneficiaries of temporary protection under the Temporary Protection Directive have attracted attention.
• Increased exchange of experience at the EU level – several parties emphasise the importance of EU and international cooperation in this area.

The report highlighted both remaining challenges and successful initiatives. Labour exploitation, where trafficking in human beings may occur, is identified as a major challenge for several stakeholders. These crimes are difficult to investigate and workers are often afraid to report that they have been victimised. Regional coordinators against prostitution and trafficking in human beings play a vital role in identifying victims. They are employed by social services and assist authorities with support in cases of trafficking in human beings. The Delegation against Labour Market Crime has conducted in-depth analyses of work-related crime, proposing further action.

What happened next?

Efforts to combat illegal employment in Sweden have continued at full pace, even after the study’s reporting period. In addition to several ongoing government initiatives, a number of new initiatives were launched, including:

• “Sweden Against Organised Crime (SMOB)”. In September 2024, SMOB was launched, bringing together several authorities, including the Swedish Public Employment Service, the Swedish Migration Agency and the Swedish Police Authority, as well as academia, social partners and business organisations.
• The Swedish Delegation Against Work-Related Crime. Four reports are now being prepared by the Government Offices of Sweden. The latest, published in March 2025, presented proposals as to how ongoing efforts against work-related crime should be conducted in the long term.
• Priority areas. Since 2024, work has been in progress within the Swedish Migration Agency under the umbrella of ‘priority areas’ to prevent and counter the misuse of regulations and case processes. The work focuses on increased scrutiny in case assessments, strengthened identity verification and preventing erroneous payments.
• “The Price Behind the Price” (in Swedish: Priset bakom priset). This campaign was launched in December 2024, targeting both the general public and vulnerable workers.