Its head, Ann-Marie Begler, is critical of some local politicians aiming too low.
"We see some municipalities aiming at a 80 percent pass rate for their pupils," she tells Swedish Radio. "With that kind of goal, you have really low expectations of your students, and low expectations of the staff you employ in schools."
The number of students who are not eligible for high school studies is increasing every year, states the report.
In addition to the more than thousand pupils who do not have a passing grade in any subject, there are a few hundred students who leave school altogether even earlier.
The report says dropping out endangers the teenagers' future prospects on the labour market and increases the risk of psychological and social hardship.