A general shortening of working hours with maintained wages would make Sweden poorer and hit Örebro County hard. If a general shortening of working hours was carried out, from 40 to 35 hours a week with a maintained salary, the prosperity of the county would decrease by as much as SEK 13 billion per year.
This corresponds to SEK 42,541 per inhabitant and year, according to new calculations from Swedish Enterprise.
The proposal for a general shortening of working hours with maintained pay has received a lot of attention. The issue is being pursued from the trade union side, but political regulation has also been discussed. What rarely comes up, is how it would affect prosperity around the country.
If the number of hours worked in the economy falls, so does GDP, as the production of goods and services decreases. A reduction in the number of hours worked from 40 to 35 hours per week would correspond to a loss of wealth of as much as SEK 517 billion per year. A dramatically reduced space for investment in welfare, in investments, new hires and salary increases.
The consequences would be devastating, not least for Örebro County. The gross regional product, the value of all goods and services produced in the county, would decrease by as much as SEK 13 billion per year, according to new calculations from Swedish Enterprise. This corresponds to SEK 42,541 per person per year. A killing blow against the county’s inhabitants.
— Sweden and Örebro County are in a serious situation with great needs in many areas. The last thing the county’s entrepreneurs and residents need is reduced prosperity, says Karl Hulterström, regional director of Swedish Business in Örebro County. — On the contrary, we need to strengthen our competitiveness so that we can build Sweden and Örebro county stronger.
Reduced working hours are not in themselves a new idea, on the contrary, working hours are one of the issues that are the subject of negotiations between the social partners in industry-specific agreements. What is happening now is that union voices in central agreements want to reduce working hours, while the political threat has not been averted.
— Working hours are, just like wages, a matter for the parties to negotiate on an industry-wide basis. Politically forcing reduced working hours while maintaining wages makes the county’s residents poorer, notes Karl Hulterström.
Economy | Örebro/County
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