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WORKING IN SWEDEN

Sweden joins Denmark in push to annul EU’s minimum wage directive

Sweden will next week send a formal request to the EU's Court of Justice, asking to be allowed to join Denmark in its case requesting annulment of the EU’s minimum wage directive, the country's deputy employment minister has confirmed.

Sweden joins Denmark in push to annul EU's minimum wage directive
Denmark will seek to have the EU's minimum wage directive annulled by the EU Court. File photo: JOHN THYS / AFP

The right-wing government has been under pressure from the opposition Social Democrats, as well by both the unions and employer trade bodies, to join Denmark in its push to annul the directive, but has up until now held back from making any commitments. 

Paulina Brandberg told TT newswire that Sweden’s permission was that unions and employer trade bodies should alone be tasked with setting salary levels and that the EU should not be involved in setting wage levels through legislation. 

“This is an important issue of principle, which at root is about the limits of the EU’s authority,” she told TT. “We were waiting to see how the Danish case was formed and when we saw it, we quickly realised that it was something we could become involved in.” 

READ ALSO: Danish government sues EU over minimum wage

Denmark’s government in January brought a case requesting annulment of the EU’s minimum wage directive. 

An annulment suit is an attempt to have the directive revoked on the grounds that it is in breach of the EU Treaty.

An EU directive on minimum wages was adopted in October last year but Denmark and Sweden were both opposed because of the established labour models in those two countries, by which wages are set through negotiations between trade unions and employers.

The EU Commission has stated that it will respect the Swedish and Danish models of wage setting and would not force either country to code a minimum wage into law.

But the Danish government in January said it wanted the directive to be removed completely. At that time it was unclear whether the Swedish side would join the case. 

Member comments

  1. Speaking from experience on this , once a minimum wage is introduced, the desire to have /need a union is diminished. Employers will use this law to their advantage. Low level wage earners will never be paid a ” living wage “. Canada and U.S are my examples.

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WORKING IN SWEDEN

Unemployment in Sweden is rising, but more people are finding work

Unemployment in Sweden is on the rise, but there is a silver lining.

Unemployment in Sweden is rising, but more people are finding work

New figures from the Swedish Public Employment Service (Arbetsförmedlingen) show that while more people are unemployed, a greater number of them found work last month compared to the same period a year ago.

As of the end of June, nearly 348,000 people were registered as unemployed with the agency, an increase of almost 26,000 from a year ago.

This puts the unemployment rate at 6.6 percent, up from 6.1 percent twelve months ago.

Emil Persson, a labour market analyst at Arbetsförmedlingen, expects unemployment to continue rising throughout the year.

“We expect the labour market to be weak throughout 2024, with the turning point occuring as the economy improves in 2025,” he said.

Regional unemployment rates

Unemployment is highest in Skåne at 8.9 percent, followed by Södermanland County at 8.5 percent, and is increasing in most counties across the country.

In contrast, Västerbotten County boasts the lowest unemployment rate at 3.5 percent.

The number of long-term unemployed – defined as those out of work for a year or more – has also increased by nearly 3,000 compared to the same period last year, bringing the current total to just over 140,000.

Positive signs

Despite the overall rise in unemployment, there are some positive signs.

Fewer people were given notice in June 2024 compared to June 2023, with the number dropping from 5,300 to 4,500.

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Additionally, more people started working in June 2024 than in the same month last year, with the figure increasing from 29,500 to 31,000.

“This doesn’t change the image we have now of a weak labour market,” Persson said. “We expect the turning point to come later.”

However, Persson warns that the number of notices could rise again in the autumn due to the weaker labour market and higher-than-normal number of notices during the spring.

He believes 2025 will bring about a turnaround in the labour market.

“It will probably be somewhat easier in the first half of next year. However, the assessment is still characterised by great uncertainty,” he told TT, adding that it will take some time before Sweden is at the same unemployment level as it was before the recession.

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