The Swedish labour market model

In Sweden, things are running quite smoothly by way of the Swedish labour market model – keeping a fair labour market with competitive companies.

There are around 650 collective agreements in Sweden, renegotiated every two or three years. It’s never a walk in the park, but it lands in collective agreements that are respected and upheld.

This creates stability and predictability in the labour market.

A model like this creates grounded solutions based on the people and companies involved and affected. And it allows the social partners to respond quickly to any challenges that may arise. It´s a model based on social trust.

The model is not without imperfections, but moving more power to the outside of the model would have a negative effect on companies, employees – and on the model itself.

The Swedish labour market model balances high wages and good working conditions with very competitive companies on the international market. It has proven to be a robust solution over time.

More on Collective Agreements

The short video below introduces the viewer to the most important characteristics of the Swedish model – how it works, how it emerged and how it differs from models in most other countries. The video is from The Confederation of Swedish Enterprise of which IKEM is a member.