Higher productivity leaves room for Swedish real-wage rises

Higher productivity is creating room for wages in Sweden to rise faster than prices over the coming years, according to the National Institute of Economic Research.

Director-general Albin Kainelainen told Sveriges Radio on Wednesday that productivity could continue increasing by around 1.5 per cent a year. More efficient companies and employees are an important part of that assessment.

The institute has examined the conditions for the next collective-bargaining round in its wage-formation report, scheduled for publication at 09:00 on Wednesday.

The assessment concerns room for real-wage growth, meaning gains after inflation. It is not an agreed pay increase or a promise that every worker will receive the same rise.

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