Workforce Development and Inclusion

The economic growth and prosperity of Sweden is built upon its labor market model. The Swedish labor market is characterized by high degrees of unionization and equality. The labor force participation rate is 75%.

Sweden has a highly educated workforce, as about one-third of the population has post-secondary education of at least three years. College education is free, and students can apply for grants and loans during their studies. This model is fundamental for equality of opportunity, social mobility, and a productive and specialized workforce.
Sweden is ranked No. 2 in the Economist’s 2023 Glass-Ceiling Index, which measures representation, role, and influence of women in the workforce across the O.E.C.D.
Sweden also has a long tradition of supporting employees to bolster business resilience and efficiency. This includes vocational-training systems, job-security councils, and collective bargaining. Workers’ rights are one of the cornerstones of the modern Swedish labor market, and around 70% the working population is unionized.
Family sitting outside on grassFamily sitting outside on grass
magnus_liam_karlsson-fathers
​​​​​​​​​​​​​​Sweden was the first country in the world to, in 1974, replace gender-specific maternity leave with parental leave.
Photo: Magnus Liam Karlsson/imagebank.sweden.se
In 1974, Sweden became the first country in the world to replace gender-specific maternity leave with parental leave.
Construction worker on worksireConstruction worker on worksire
Construction worker
People who wish to continue their education have several options open to them. In addition to universities and university colleges, there are municipal academic and vocational programmes for adults.
Photo: Phia Bergdahl/Scandinav/Imagebank.sweden.se
Wages and working agreements are established through collective bargaining between unions and employer organizations. The state has a passive role, and there is no national minimum wage. Collective bargaining has created an environment in which the health and safety of employees is a key priority. Labour unions also work with employers and the government to support laid-off workers and support re-skilling rather than preserving outdated job functions. This is to ensure job security and the possibility to transition and develop in the labor market.
Sweden’s strong support for workers has allowed Swedish companies and industries to reinvent themselves and re-skill their workforce while adapting to global competition and digitalization.
The state and municipalites provide affordable childcare (with a cap of 160 USD/month) and eldercare to enable individuals to combine work and family life. Sweden has a generous and gender-neutral parental leave. Parents are entitled to 480 days of paid parental leave per child. This is to be shared between both parents, and three months are reserved for each parent. Equality in education and health care are also key factors for Swedish labor-market inclusivity.
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Even though Sweden is one of the most gender-equal countries in the world, challenges remain. Women still earn less than men and remain underrepresented in top management roles in the private sector.