THE POWER OF LABOUR MARKET INTERMEDIARIES - On Matching Spaces, Networks and Relations in Sweden’s Knowledge-Intensive Sector

Abstract

Purpose: In the last decade, Labour Market Intermediaries (LMIs) in the knowledge-intensive sector in Sweden have gained increasing attention as important actors in the labour market. As the influence of LMIs most likely will continue to grow, it becomes increasingly crucial to consider their implications for the labour market. The purpose of this study is to increase understanding of the conditions that enable or constrain LMI's possibility to exert control and influence in matching processes and business operations. Theory: The theoretical framework for this study draws from both social network theory, boundary organisation theory, and the concept of “matching spaces”. The combination of theories and concepts enables an explanation of how external input from social network theory affects the internal management practices of LMIs. Method: A qualitative method was applied for this thesis. The empirical material consists of 12 interviews, observations and document studies. The study analysis utilised an abductive approach to enable flexibility in categorising and interpreting emerging patterns from the data, and iteratively reviewing earlier research and theories. Result: The findings of this study highlight the significance of LMI’s management practices in matters of control and influence within the labour market. It further shows the critical importance of networks and relationships, particularly trust in strong ties as an important condition for LMI’s possibility to exert influence in matching processes. Lastly, their most profound impact on structuring labour markets is matching the supply and demand of major power asymmetries.