Skills and collective wage bargaining

A well-functioning labor market needs skill supply, opportunities to upgrade skills and possibilities for job mobility. Employers, employees and the public sector have both common and opposing interests in this context. Most Western countries respond to these needs with a mix of market forces, government regulations and agreements between social partners. Sweden’s independent and relatively centralized social partners have in some respects been an asset, but have in others created challenges. Regarding skill supply, Sweden has less regulation and coordination than other European countries, partly due to the absence of a full-fledged apprenticeship system. Opportunities for upskilling vary across industries and are related to employer needs. With regard to reskilling, Sweden's social partners have developed a system that provides good opportunities throughout working life. Recently, further steps have been taken to stimulate both upskilling and reskilling through an extensive agreement between the state and the social partners concerning transition opportunities.