Sweden is undergoing a major reform of its public employment service Arbetsförmedlingen towards contracting out employment services to independent providers. At the same time, Arbetsförmedlingen is also undergoing a significant restructuring, resulting in a downscaling of physical presence across the country and an increased digitalisation of services. As this report shows, the social economy and in particular work integration social enterprises can play an important role in the delivery of publicly-financed employment services. The report analyses the main features of the social economy in general as well as its current role in employment policies in Sweden. Moreover, it discusses challenges in engaging social economy organisations as providers in the market for contracted-out employment services in Sweden with respect to the legal framework, contracting rules, financial barriers, payment models, and co-operation structures. Lastly, it offers recommendations based on international practice to help design and implement the proposed policy recommendations in the Swedish context.