The then minister for migration, Maria Malmer Stenergard, received a report with proposals for new rules on labor immigration from investigator Ann-Jeanette Eriksson in February this year. Now the same investigation has been out for a referral round, and several stakeholders have submitted critical responses.
Despite an oft-reported shortage of talent, the government and the far-right Sweden Democrats want to make it harder for people to get work visas in Sweden and have commissioned an investigator to review several related proposals.
One of these proposals involves a higher wage requirement for workers. In the directives for the investigation, the government parties state their intention to "combat crime and fraud related to labor immigration with full force."
The investigation, titled "New rules for labor immigration, etc.," was completed in February.
At a press conference, the then minister for migration, Maria Malmer Stenergard (M), announced a major reform of labor immigration regulations.
The reform aims to tighten requirements for low-skilled labor immigration while simultaneously promoting immigration for qualified and highly qualified professionals.
The wage requirement has been the most contentious proposal under consideration. It stipulates that the minimum monthly salary for work permit eligibility should be 80% of Sweden's median salary. At the time the reform was enacted, this amounted to 27,360 kronor (based on a median salary of 34,200 kronor).
However, on June 18, 2024, the median salary increased to 35,600 kronor, raising the corresponding minimum work permit salary threshold to 28,480 kronor.
The investigation highlights a significant shortage of labor in northern Sweden, affecting both industry and other sectors of society. Former Minister for Employment, Johan Pehrson (L), previously expressed optimism about the desire of individuals to work in Sweden, emphasizing the country's substantial skills shortage.(Archive image)
The government parties argue in their investigation directives that low-paying jobs can be filled by individuals already residing in Sweden.
They state:
– A higher wage requirement can reduce labor immigration in low-skilled occupations while also ensuring better utilization of the existing Swedish workforce.
However, representatives from major industrial companies and health authorities interviewed by Norran disagree, asserting that these proposals will not benefit their operations but rather have the opposite effect.
Mohsen Oliaei, BIM coordinator consultant at Northvolt, expressed his concerns to Norran, saying:
– If I were a politician, I would approach this situation with great caution.
Mohsen Oliaei, BIM coordinator consultant at Northvolt, is concerned that rules that further complicate labor immigration could have major consequences.
He believes that it will be more difficult for companies to attract personnel to Sweden if the proposal is pushed through.
– From a social perspective, Sweden offers no significant incentives compared to other EU countries, especially with non-existent opportunities for integration for foreigners. Any obstacle to migration or the economic conditions in the area could trigger a domino effect with far-reaching consequences, he believes.
In Norrbotten, a large-scale investment in steel production is underway, and the company Stegra (formerly H2 Green Steel) has also reacted negatively to the news.
– It is a terrible policy for private actors as well as the public sector in Sweden, says Mikael Lindström, public affairs director at Stegra.
Two recurring themes emerged in the responses to the proposed labor immigration reforms received by Norran:
- Conflict with the Swedish model: The proposals challenge the established system where wages are negotiated between unions and employers.
- Difficulty in recruiting personnel: There is deep concern that the reforms will make it more challenging to attract and retain employees in both the private and public sectors.
Mikael Lindström, public affairs director at Stegra, is critical of the government's proposal. "Above all, we are concerned about the entire ecosystem surrounding our factory. In a region with very low unemployment and challenges in attracting people from southern Sweden, the public sector must function. But that sector already has extreme difficulties in recruiting staff," he says. (Archive image)
Lindström is concerned about the dual impact the salary requirement could have on the labor market.
– The government-imposed minimum wage for foreign citizens would be substantially higher than the prevailing rates in most collective agreements for Swedish and EU citizens, both in the private and public sectors.
During the consultation process, 75 stakeholders, including municipalities, companies, and authorities, were required to provide their feedback on the proposed labor immigration reforms.
In its response, Northvolt highlighted not only the serious consequences that the salary requirement could have for Norrland companies, but also raised the issue of broader societal implications.
Northvolt stated:
– We believe there is a significant risk that the staffing of healthcare, services, and infrastructure in northern Sweden will be negatively affected by the salary requirement, which could indirectly hinder our plans.
Northvolt is not alone in its concerns about the potential impact of the proposed labor immigration reforms on healthcare.
In their responses to Norran, Region Västerbotten and SKR, the association representing Sweden's municipalities and regions, also expressed criticism of certain aspects of the inquiry's proposals.
Region Västerbotten raised concerns about the proposed regulations for certain salaries, arguing that the median salary requirement is too high. The region stated:
– The proposed level is significantly higher than the minimum level regulated in many central collective agreements and also exceeds the minimum salary level for numerous professions where university-educated personnel are employed in healthcare (italics added by Norran).
Region Västerbotten also anticipates that municipalities will face even greater challenges in accepting patients who are ready for discharge.
Patients ready for discharge are those who have completed their treatment but remain in the hospital awaiting necessary municipal interventions, such as elderly individuals waiting for home care or placement in a nursing home.
The serious consequences of this situation are numerous:
- Planned surgeries are forced to be canceled.
- Patients are forced to lie in corridors or bathrooms.
- In extreme cases, patients have even spent the night in the emergency department.
- Healthcare staff are required to work extra shifts, including on weekends and overtime.
SKR (The Swedish Association of Local Authorities and Regions), which is made up of political representatives from all over Sweden, believes that it will be even more difficult to recruit staff in the northern regions if the proposals are adopted.
–This also applies to the demands that are already being made today, they write.
Lindström of Stegra acknowledges the government's intentions behind the proposed labor immigration reforms but believes that unscrupulous employers will simply find new ways to exploit foreign workers.
– This is a counterproductive approach to addressing the real issue. This proposal should be revised promptly.
Work visas
Until recently, a monthly income of 13,000 kronor was considered sufficient.
In 2023, the government increased the minimum income requirement for foreign workers. Applicants must now have a "good livelihood," which means a salary of at least 80 percent of the median Swedish salary.
When the decision was made, this translated to a monthly salary of 27,360 kronor. However, the median salary has since increased to 35,600 kronor, so the current requirement is 80 percent, which is 28,480 kronor per month. This represents an increase of nearly 174% in 12 months.