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Postponed agreements lead to lower wage growth
The big pay round has been postponed and nearly half of all wage earners have had their wages frozen. Despite this, we expect wage growth at 1.9% this year and next year. Pay rises below the inflation target is another headache for the Riksbank. The major pay round, which was to be completed during the spring, has been postponed until the autumn. This implies zero wage increases for employees whose pay deals expired in the spring, or nearly half of all employees in the Swedish economy. Instead their wages are frozen at current levels over the summer. On October 1, the negotiations which are to result in new pay deals ... (full story)