To Swedish economy to continue to grow requires, among other things, more flexible starting salaries in the labor market and investments in higher teacher salaries. It writes the OECD in a new report on the Swedish economy.
Although the Swedish economy has fared relatively well through the global economic crisis, there are major challenges to clear welfare ahead, says the West’s economic cooperation organizations OECD, which in its report today came with a series of recommendations to the country’s politicians.
OECD points to the collapse in the PISA results among 15- year olds. It must be stopped if Sweden would be in the forefront and create jobs in the future, according to the OECD. They recommend raising the teaching profession status, including higher wages and better career opportunities.
Earlier and better support for the weak and vulnerable pupils needed, and efforts to better Swedish for immigrants.
In the labor market indicates the OECD that there are large differences between permanent and temporary staff. Temporary jobs often go to vulnerable groups that may be difficult to enter the labor market permanently.
If protection for permanent employees relaxed and starting salaries more flexible, it may help to young, less educated and immigrants to enter the labor market, believe the OECD.
Other recommendations including Finance Minister Magdalena Andersson received by OECD Secretary-General Angel Gurría at a seminar in Stockholm today was to phase out the Mortgage Interest Deduction, allowing the Riksbank to continue their lågräntepolicy and to support research and innovation
The Swedish economy may also praised by the OECD. Quality of life is high and Sweden has managed to have a greener, more environmentally friendly growth than other countries. Sweden is also one of the countries that fared best by the recent global economic crisis.
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