Selected Issues Papers

Tracing the Slowdown of Labor Productivity Growth: Sweden

By Xin Tang

April 15, 2025

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Format: Chicago

Xin Tang. "Tracing the Slowdown of Labor Productivity Growth: Sweden", Selected Issues Papers 2025, 037 (2025), accessed April 22, 2025, https://doi.org/10.5089/9798229009485.018

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Summary

Labor productivity in Sweden is among the highest in Europe but has been experiencing a secular decline since the GFC, similar to trends in other advanced economies. Sweden’s strong performance is supported by a skilled labor force, a competitive business environment, high R&D investments, and deep financial markets. However, evidence points to barriers to resource allocation across sectors and firms, and a multi-faceted solution is needed. Proposed reforms by the authorities’ Productivity Commission could effectively address these issues. Given the evolving structure of the Swedish economy, policies that facilitate the growth of services sector firms would be particularly beneficial.

Subject: Corporate sector, Economic sectors, Financial crises, Global financial crisis of 2008-2009, Industrial sector, Labor productivity, Manufacturing, Production, Productivity, Public sector, Services sector, Technology

Keywords: Competition, Corporate sector, Firm size, Global financial crisis of 2008-2009, Industrial sector, Labor productivity, Labor productivity, Manufacturing, Productivity, Public sector, Sectoral composition, Services sector, Transport infrastructure

Publication Details

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