ABSTRACT The aim of this study was to examine advantages and barriers that can appear when the municipal employment service and daily activity center work together in close collaboration. The study is based on semi-structured interviews with managers and employees in three municipalities in Värmland. The questions were:  How does the municipal employment service and the daily activity center work together?  Are the respondents experiencing any barriers in the collaboration processes between the municipal employment service and daily activity center?  Are the respondents experiencing any advantages when the municipal employment service and daily activity center work close together? If so, are the advantages primarily economical, professional or individual?  Does the collaboration processes in the three municipalities reflect the factors that supports as well as impedes collaboration that Danemark and Kullberg´s identified in their report (1999)? The results are analyzed from the new-institutional theory by Grapes (2006) and the factors that support and impede collaboration by Danemark & Kullberg (1999). The study shows three completely different ways of collaboration. In Hagfors the two sectors collaborate primarily in daily job tasks, in Grums there are no collaboration at all and in Kristinehamn they collaborate at some extent regarding external work training sites. Furthermore, the results show some of the barriers the municipalities experience such as inadequate information, differences in knowledge as well as economy. The respondents could see great advantages for the individual in enhanced quality, teamwork among staff and in work performance. The summary that compiles factors who supports and impedes collaboration shows that in comparison, Hagfors is best prepared when it comes to collaboration between the two sectors and Grums is least equipped for working together.