How Sweden is Betraying Its Entrepreneurs
Amanda Herzog
Career Coach | Solving the Swedish Talent Shortage | Advocate for International Professionals in Sweden | Founder of Intertalents in Sweden | PMI Winner Under 35 Changemaker Leadership Award 2024 | Consultant | Speaker
Sweden is in its Betrayal Era.
It is betraying international professionals who have invested years of their life, their family’s life, and their money by limiting their options to continue living and working in Sweden.
And it is betraying its own native population by limiting business growth with new, unattainable salary thresholds and strict immigration policies that further constrict the already existing labor shortage issue.
The Sm?f?retagarbarometern (Small Business Barometer) in Sweden has heavily criticized the new immigration policies, stating that it is “missing the entrepreneur line”?by creating an inability to hire employees with specialized skills as well as keep current international employees.
Additionally, Naod Habtemichael on the L?nstidningen S?dert?lje editorial page writes that
“the government's introduction of a wage floor is a betrayal of the country's entrepreneurs and strikes against their opportunities to find the right skills.”
Last year labor immigration brought in SEK 52 billion to Sweden's total GDP. By continuing to restrict immigration of highly qualified talent to Sweden,
"it will undoubtedly negatively affect the supply of skills for Swedish companies and their conditions to be able to assert themselves in international competition,"
Naod Habtemichael writes, and urges Migration Minister Maria Malmer Stenergard to change and do the right thing.?
There were 20% fewer visa approvals at the beginning of 2024 compared to the same time last year in 2023. If you feel like more highly qualified talents are leaving Sweden to go to other lands where they are more accepted, appreciated and welcome, well… you are noticing a trend that is supported in the numbers.
Interestingly, this isn’t just happening with foreign professionals leaving Sweden. There is a brain drain with native Swedes and particularly with Swedish businesses.?
Several have already given public statements that they are moving their business to Denmark after their failed salary threshold experiment was abolished (one that Sweden is currently testing out… apparently they didn’t study the results very well), assuming it will be easier to hire foreign talent for the same salary conditions.
One such example of this is FrontPac AB 's CEO Martin Enocson , who is considering moving the company to Denmark. When speaking about the government’s plans to raise the salary threshold to 100% of the median salary instead of 80% he says, “I have to continue producing," and that foreign labor “have been and are the key to our success.”
Forest entrepreneur Joakim Gustafsson , the CEO and founder of Svensk Skogsservice AB has also shared his opinion on the new policies.
He says about Migration Minister Maria Malmer Stenergard, “I think she has a poor understanding of what reality looks like,” and “It is a bad political move for the government to be SD at law. They have made big promises that they will lower the numbers on immigration and those who sit on the ballots do not understand the difference between labor immigrants and other immigrants.”
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He points out that the labor immigrants who are in Sweden pay taxes and have their own health insurance. “They pay taxes in full and are huge net payers. But most voters probably don't understand that.”
The bottom line is this: Sweden’s new policies are a betrayal to their own citizens, entrepreneurial and economic growth in addition to the international professionals who give their skills and livelihoods to the country.
International professionals, you are not alone in your frustration. Swedish businesses are speaking up against these strange, ineffective, and backward policies. Remember that Sweden is currently following a model that Denmark used and failed at, recently rescinding it altogether due to the negative effects.
I predict that Sweden will follow the same path, reversing it within 2-5 years time.
What are your thoughts about the new policies that Sweden is getting so much heat and criticism for? Do you think Sweden is still an attractive place for foreigners to live in with the current conditions?
Sources:
Svensk Skogsservice: https://www.tn.se/arbetsmarknad/38127/skogsforetagaren-sa-baktalar-regeringen-var-yrkesgrupp/
Sm?f?retagarbarometern: https://www.tn.se/article/37784/kritik-mot-regeringen-saknar-foretagarlinjen/
About the author:
Amanda Herzog is the founder of Intertalents In Sweden where she offers online courses, e-books, coaching and other resources to help foreign-born professionals find career success in Sweden. She is also a consultant for Swedish organizations that need assistance to help integrate international professionals into Swedish professional work culture. She offers lectures, workshops and training for Universities, business developers, local Kommuns, and organizations in Sweden. Contact her to learn more about her services.
?? LEARN MORE AT: www.intertalentsinsweden.com
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6 个月I really wonder what kind of tech company wants to hire professionals for less than 34000 sek? does the company leader go to the supermarket and check the prices of things? It is utterly absurd that companies want to pay so little for international employees. let's also be honest that these same start ups will most likely not be giving their employees shares/stocks or any deciding power in their company. So: the people wanting to give international employees lower wages should honestly, be ashamed of themselves.
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7 个月If we increase the salary to import labour we should increase the salary for existing labour. It's very strange that Sweden doesn't have an acceptable "starting salary" threshold like other EU countries
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7 个月well... one might say that such a consequence is inevitable when one chooses to support a far-right nationalist party that is profoundly disconnected from contemporary global dynamics and modern economies. It is akin to shooting oneself in the foot.
Mechanical Engineer - Systems Engineer - Integration & Test Engineer
7 个月Swedish-American here. Lost my chance at Swedish citizenship at 22 due to being born abroad. I tried twice to regain citizenship and was told I don't have strong enough ties to Sweden, despite being half Swedish and having half my family in Sweden. I have undergraduate and graduate degrees in mechanical engineering, solid aerospace industry experience, speak Swedish, and have always wanted to live in Sweden. Took the leap to Sweden in 2021; - found a job, sold my home in the US, and picked up the entire family to move to Sweden (completely self funded*). The move I dreamed of was finally happening. After arriving, my wife and I were blown away at how difficult it was to do literally anything. Bank account, vehicle, insurance, housing, ID cards, - you name it, there were 50 hoops to jump through. I asked my employer for help on several occasions and was sent google links! - as if I hadn't already googled the matter at hand. The support for immigrants, even Swedish speaking folk who are half Swedish, is abysmal. My job fell apart 8 months later, and my family and I have been back in the US for 2 years. It was a catastrophe, and an enormous financial loss. I would love to try again, but I am VERY apprehensive.