The wage premium attached to high-skill occupations fell this year, reducing Sweden’s occupational wage spread.
Improving education standards in recent years contributed to Sweden’s lower Overall Index score.
Sweden’s participation growth rate is forecast to fall this year. Declining labour market growth rates put pressure on firms seeking to expand.
Managing Director, Hays Sweden
Sweden overall is in rather good shape. Financially the country is stable and has been over the last few years, despite some alarm bells ringing. Sweden accepted a large number of migrants a few years ago, which created a larger pool of workers but not necessarily ones with the skills required by employers. The risk of industry growth stagnation is also still present. High wage pressure combined with skills mismatches are one of the biggest challenges for Swedish companies. On a positive note, educational flexibility is improving and Sweden is producing more graduates with suitable skills and who are better prepared for the world of work than previously; this should lead to improvements in other aspects of the labour market in the future.
Johan Alsen, Managing Director, Hays Sweden
Sweden’s economy continues to expand. In 2017, real GDP increased by 2.5%. The IMF forecast it will increase by 2.6% and 2.2% in 2018 and 2019.
To produce the growth in output, employment rose by over 2% in 2017. This reduced unemployment to 6.7%. Vacancies for jobs of over ten days’ duration increased by 19%. The increased demand for labour boosted the participation rate which rose to 73%.
The National Institute for Economic Research’s business tendency survey points to continued employment growth in 2018.