Disability employment initiatives: review of recent evidence from Denmark and Sweden

1. Introduction

1.1 Purpose

This review has been carried out to support the aims of the Fair Work Action Plan ¹ and the Fair Work Evidence Plan ⁸. It follows the Fair Work Convention’s Response ² to: ‘Measuring Scotland’s Performance as a Leading Fair Work Nation’ undertaken by Alma Economics ³, which recommended:

“The Scottish Government should focus on drawing lessons from countries that are doing well on fair work indicators and Active Labour Market Policies. Particular focus should be given to Denmark on the disability employment gap.”

The disability employment gap is the percentage point difference between employment rates of non-disabled and disabled adults ³. The disability employment gap in Scotland in 2023 was 30.2 percentage points ⁴.

After an initial examination of available evidence it was agreed to focus this rapid review on evidence surrounding the promotion of disability employment in Active Labour Market Policies (ALMPs) in Denmark and Sweden.

This rapid review took place in summer 2024, and a near-final draft including was key findings was shared with the Fair Work Oversight Group for their consideration in June 2025. It does not seek to replace or revisit the two recent reviews undertaken on behalf on the Scottish Government on Individual Placement and Support (IPS) ⁹ and Supported Employment (SE) ¹⁰.

1.2 Approach

This evidence review was conducted over three months from June to September 2024^[i]. A rapid literature review methodology was adopted that involved three phases: familiarisation and review of key documents; data collection and engagement with internal stakeholders; and, evidence analysis.

Reviewed literature included qualitative and quantitative evidence from literature reviews and primary research utilising Randomised Control Trials (RCTs), clinical trials, surveys, focus groups, and evaluations. Grey literature, book chapters and information from relevant websites were also considered.

The review covered publications published in the last five years (2019-2024), as well as relevant publications from previous years (considered important for historical context), and was limited to English materials.

1.3 Country Selection

The Fair Work Convention ² recommended focusing on drawing lessons from countries that are doing well on fair work indicators, with a particular focus on Denmark in relation to the DEG. This was expanded to include Sweden after an examination of the availability of recent evidence on ALMPs in English language online and country profiles (e.g. labour market statistics, legal and institutional characteristics of the employability support system). This approach was agreed with internal stakeholders.

1.4 Limitations

Several key limitations must be acknowledged before drawing conclusions from this review. These are:

• Literature review methodology: This was a rapid review, undertaken internally in less than 3 months, it was not structured or systematic.
• Period covered by the research: The review sought to look at the most recent evidence from the past five years from when the review took place (2019 to 2024). However, evidence from publications dated prior to 2019 were also included if they were sufficiently relevant and provided relevant insights.
• Country selection: Although the decision to focus on two countries – Denmark and Sweden - allowed for a more focused analysis within the timeframe of the review, it limited the international scope of the review.
• Language: The review was limited to evidence in English.
• Online availability of resources: This was a desk based exercise and limited to countries with well-documented information online.
• Not all types of ALMPs examined: This review only considered ALMPs implemented in Denmark and Sweden. Therefore other ALMPs, such as employment quotas, which are not present in Denmark and Sweden, were not included.