The recovery of the Swedish economy has "come a long way," says KI. The institute expects the recovery in the labour market to continue next year, with unemployment falling and the employment rate rising.
"During 2025 and the first half of 2026, real wages have begun to rise again. The main reason is that inflation has fallen back while nominal wage increases have continued," KI writes in a wage formation report.
However, inflation is expected to rise going forward.
"The rate of wage increases in Sweden is expected to slow slightly in 2027 but remain at levels that, from a historical perspective, are higher than the average since the financial crisis," KI writes.
