Income inequality in Sweden

Sweden enjoys a relatively low income inequality and a high standard of living, unemployment as of 2011 is estimated to be 14% (2011 est.) by the CIA World Fact Book, which is relatively low compared to other EU countries, and the Nordic Model employed by Sweden has often been considered a success story in Europe in relation to other failing European economies. This model includes many unemployment benefits for the poor, and a generous welfare state, while being a very transparent and corruption free country. The Income inequality in Sweden ranks low in the Gini coefficient, being 25.2 as of 2015 which is one of the lowest in the world, and ranking similarly to the other Nordic Countries; although inequality has been recently on the rise and several central European countries now have a lower Gini coefficient than Sweden.

Inflation is currently in a historical low, and Swedes pay very high taxes, being 52.1% of GDP (2014 est.) and enjoy a very generous universal welfare state. Sweden highest earning household have a remarkably lower share of income capital when compared to other countries; with the highest 10% having 22.2% of income or consumption by percentage share (compared to the USA, in which the highest 10% percent have 30%, and Germany, have 24% ), and very low poverty rates. In 2010, a study by InequalityWatch in 2010 shows that considering the thresholds at 50% of national median income of EU countries, Sweden rate of poverty is 7%, significantly lower than in other countries such as Spain(around 15%), or the UK(9.8 %).

In 2005, Sweden's labor force was estimated at 4.49 million persons. As of 2003, the services sector accounted for 75.1% of the workforce, with 22.6% engaged in industry, 2.1% in agriculture, and the remainder in undefined occupations. About 80% of Swedish wage earners are members of trade unions, and within certain industrial branches the percentage is even higher. The trade union movement is based on voluntary membership, and there is neither a closed shop nor a union shop. Although workers have the right to strike, employers also have the right to use the lockout. The Labour workforce is mixed, and productivity has slightly weakened in recent months, but GDP per hour worked in Sweden remains very high.

In the last decades, there has been a growing supply and amount of low-skilled workers in the labor force competing for fewer and fewer occupations with lower educational and experience requirements. These types of jobs can include certain occupations in industry, and a number of occupations in services, administration and sales such as child care workers, kitchen and restaurant assistants, shop assistants,and cleaners. Many of these jobs are characterized by high staff turnover, which can be good for those who want to gain a foothold in the Swedish labor.

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