News

“Let firms decide which employees to be laid off”

5 december 2018

Employers should be given freedom to choose which employees will be allowed to stay and who will be laid off, writes economists Anders Bornhäll, Sven-Olov Daunfeldt and Johan Eklund in SvD.

The strict employment protection laws in Sweden was designed over 40 years ago during a time when the Swedish labor market was significantly different from what it is today. Unemployment was considerably lower among the groups of workers who today have problems establishing themselves in the labor market. The large industrial companies that were significant in the 1970’s are closed down or outsourced abroad; instead, new jobs are created in small service companies.

Article in Swedish here.