The Duality of the Swedish Labour Market

There are two key developments in the current labour market in Sweden. On the one hand, there is a strong economic upturn fuelled primarily by domestic demand. This means that the non-tradable sectors are doing better than the tradable sectors. There are labour shortages, particularly in the public sector and in the private service sectors. On the other hand, it is difficult for the low skilled, particularly those who are foreign born, to enter the labour market. Both these problems are considered in this report.