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Record real wage rise

Published lördag 27 december 2014 kl 17.44
Statens servicecenter, med säte i Stockholm, Östersund och Gävle, kommer att behöva nya löneadministratörer. Foto: TT/Sveriges Radio
No inflation means more money in the pocket, despite being bad for the economy. Photo: TT/Sveriges Radio

People with jobs got an average pay rise of SEK 900 more every month in 2014, higher than any other year bar one.

This is because of inflation standing still and not eating into any of the increases, reports Swedish Radio News.

Wages have only gone up by this much one year before, in the 2000s.

Bo Enegren at the wage arbitration board says this all means a real rise of about three percent. In the past two decades the increases were more like two percent.

This is the second year in a row with zero inflation. The Central Bank has also cut interest rates to zero to try to raise inflation and boost the economy, but says it is unlikely to meet its two percent inflation target for a couple of years.

Lower inflation is not wanted by the central bank as it means companies will make lower profits and investors are less likely to put up capital. And this could mean that despite working people getting more, there are people actually losing their jobs.

In December almost 8 percent of the workforce was unemployed and registered with the Employment Service Arbetsförmedlingen. This figure does not include people on full time sick pay or job seekers who are not in the system.

 

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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