Sweden faces lower employment and labour force growth

Integration of foreign-born citizens is key to keep expanding labour force, says Riksbank research

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Sweden is likely to record lower growth in its employment and labour force over the coming years, according to research published by Sveriges Riksbank.

Iida Häkkinen Skans and Pernilla Wasén say Sweden’s labour force annually increased by an average of 1.1% over the past decade. But they say it will decline to 0.3% going forward.

This will be due to lower demographic growth as well as changes in the age composition of the population, the authors say.

From 2025, the labour force will expand

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