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Lowest wage growth in Sweden for 55 years – signs of stagnating economic growth?

Monday, 26 September 2011
Swedish economy has been growing pretty well and Swedish corporation have been posting profits – according to the news and analysis we have been made to learn and publicise. But behind that, it was expected that workers and employees would enjoy the sweat of their labour with wage growth. Yeah? Wrong!

It is now held that the various economic related crisis has means that the wages last year were unusually weak. Its equivalent could be traced back to the 1940s and 50s according to a new report. Particularly, it is now that people have started feeling the pain.

Salary increases for all employees in 2010 was on average only at 2.2 percent. It is the smallest increase for any one year, measured for at least 55 years. Probably the same low rate increases has not occurred since the 40s, according to a new report that Swedish labour movement, LO presented today.

“It was a very special situation, following the economic crisis in autumn 2008. When we were in negotiations the industries started falling. It was a difficult negotiating position,” said Per Bardh or LO.

Despite the historically low wage growth, the Swedish people have had more money to spend last year. The unusually low growth is not eaten up by inflation, which also was unusually low - 1.3 percent. Real wages, and thus workers' purchasing power, increased instead of 1 per cent.

The reports also hold that it is mainly the senior officials whose salaries are drawn away most.
By Scancomark.se Team

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