Sweden: calls for wage moderation brought things to a head at the LO confederation just before the start of the fall negotiations

Konjunkturinstitutet’s report brings things to a head.  On May 18th, Konjunkturinstitutet published an analysis on the evolution of pay and recommended that the coming increases do not exceed 3.1% a year over the next two years and 3.7% for the 2015-2020 period.  Otherwise, the Institute warns that unemployment could remain above 5% (7.3% this year).  However, if wage increased by 3.5%, unemployment would stay at 6%.  Konjunkturinstitutet’s idea is that businesses are more profitable if wage increases are low, allowing them to invest into improving productivity and therefore “naturally” increasing wages.
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tet’s report brings things to a head. On May 18th, Konjunkturinstitutet published an analysis on the evolution of pay and recommended that the coming increases do not exceed 3.1% a year over the next two years and 3.7% for the 2015-2020 period. Otherwise, the Institute warns that unemployment could remain above 5% (7.3% this year). However, if wage increased by 3.5%, unemployment would stay at 6%. Konjunkturinstitutet’s idea is that businesses are more profitable if wage increases are low,

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