Wages can increase sharply – LO

Globalization should not lead to lower wages for Swedes, and there is still room for wage levels to increase significantly in real terms, economists at union movement LO have reported.

The LO economists say that the consequences for Swedish wages of globalization have been exaggerated. New technology will lead to structural changes that will make wage increases possible even for people who do not work in export industries.

The reported dismisses suggestions that Sweden faces an ‘almost inevitable’ progression towards lower wages and poorer working conditions.