Economic Policy Reforms 2023

Sweden

See more data for Sweden on the related dashboard.

Product and labour markets functioning

Performance gaps

• Shortages of affordable housing in some areas hinder labour mobility, notably for low-income households, contributing to spatial segregation.

• The integration of low-skilled workers, particularly foreign-born, into the labour market remains challenging.

Recommendations

• Increase the supply of affordable housing in lagging regions, notably by simplifying land-use planning procedures, and by gradually easing rental regulations.

• Step up vocational education and job counselling to help the low-skilled and immigrants move towards growing sectors and better adapt to the labour market needs.

Digital transition

Performance gaps

• Sweden is among the top performers in digital adoption among OECD countries, but a lack of ICT skills hinders the diffusion of digitalisation across firms.

• The share of firms reporting security breaches is high, undermining trust in ICT tools and slowing their adoption.

Recommendations

• Encourage students to graduate in ICT fields and develop further adult education in ICT.

• Encourage firms to implement ICT risk assessments on a periodical basis and train their employees to raise their awareness of obligations related to ICT security.

Inclusiveness, social protection, and ageing

Performance gaps

• Regional inequality has been rising over the past decades. Large cities attract an increasing share of the younger population and enjoy higher productivity growth, while providing adequate public services to an ageing population is increasingly challenging in rural areas.

• The gender digital divide is sizeable both in terms of profession and education.

Recommendations

• Strengthen the role of universities in regional knowledge and innovation networks and reinforce urban-rural connectivity.

• Continue to address gender stereotypes in schools and pre-schools and promote female role models in the digital economy.

Climate transition

Performance gaps

• Road transport accounts for about a third of total greenhouse gas emissions. The government has taken steps to reduce emissions from the sector, but a clear overall strategy is still missing.

• Slow and complex permitting procedures are slowing the expansion of renewables.

Recommendations

• Elaborate a roadmap for cost-efficient and technology-neutral decarbonisation of road transport.

• Streamline construction and operational permit applications for renewable energy projects.

Overall performance