Economic projections

Low wages help reduce unemployment

The Swedish economy would benefit if the national average pay increase stays under 3.1 percent per year over the next couple of years, according to a new report by the National Institute of Economic Research.

The slow development would help bring down unemployment, Mats Dillen, director general at the institute, told Swedish Radio News.

In their prognosis earlier this year, however, the institute projected an average wage increase at 3.5 percent per year, which would, according to Dillen, increase unemployment.