The Swedish Model – A Stable Foundation for the Labour Market
In Sweden, wages are determined through joint negotiations between employers and trade unions. The system has worked very well for nearly 30 years — even during challenging times.
Through collective agreements, the negotiating parties take shared responsibility for aspects such as wages and working conditions. In this way, we create stability and security in the Swedish labour market, which is essential for strengthening competitiveness.
A central part of the Swedish model is the so-called ”märket”, which is set by the parties within the industrial sector and then serves as a benchmark for the entire labour market. The ”märket” ensures sustainable wage development, helping to prevent inflation, eroded purchasing power, and, in the worst case, job losses. The model provides long-term wage growth that considers the needs of both businesses and employees.
Since the Swedish model is based on negotiations between the parties, it creates a balance between competitive conditions for employers and wage development for employees. This, in turn, leads to a stable and predictable labour market with fewer conflicts – benefiting employers, employees, and Sweden’s international competitiveness.
By working together with our trade union counterparts to uphold the Swedish model and respect the ”märket”, we create a labour market where both businesses and employees can thrive. Companies benefit from stable and predictable conditions, while employees enjoy secure jobs and long-term sustainable wage growth.