Foto: Mostphotos

A comprehensive study on labor immigration to Sweden from third countries, conducted by Erik Sjödin at the Swedish Institute for Social Research at Stockholm University and Mattias Engdahl, an economics researcher at IFAU, provides insight into the situation of labor migrants in the Swedish labor market. 

The study is based on data concerning individuals in the Swedish population registry in Sweden from 2000 to 2023 and highlights both successes and significant challenges.
A key finding is that while most labor migrants fare well and have incomes exceeding those of the core workforce, a large group has no earned income at all. This group constitutes one-fifth of the labor migrants who arrived after the 2008 reform.

Erik Sjödin. Foto: Anna Palmqvist

"The most surprising finding is that such a large proportion of those who came here to work have no visible income," says Erik Sjödin. "We can only speculate about how this group supports themselves, as they also do not receive any significant benefits."

A Liberal Reform with Unexpected Consequences

The 2008 labor migration reform, often described as one of the most liberal regulations in the world, shifted focus from state assessment of labor needs to employers' demand. This led to a marked increase in labor immigrants but also brought unexpected challenges.

"The regulation is designed to meet the need for labor and enable self-sufficiency. However, when such a large proportion of labor immigrants lack income, we must question whether the system is functioning as intended," says Erik Sjödin.

Need for Increased Monitoring

An essential result of the study is that the regulation, which has been reviewed several times since 2008, needs to be further tightened to ensure that all labor migrants work in accordance with their permits. Erik Sjödin underscores the need for increased monitoring of migrants' employment situations:

"It is essential to follow up and ensure that work permits are not just a formality, but also that those who come here to work actually have employment that allows them to support themselves."

The Two Faces of Labor Migration

The study also shows the successes of many labor migrants. Most of those who arrived after the reform have established themselves well in the labor market, often with higher incomes than the domestic workforce average. Many have started working in workplaces where most employees are also foreign-born.

However, Sjödin emphasizes that the dual nature of labor immigration must be considered moving forward:

"It is clear that labor immigrants both fill important gaps in the labor market and that some are in vulnerable positions. We need a system that can better address both of these aspects."

The Future of Labor Migration

The researchers recommend Swedish authorities to review and strengthen their mechanisms for monitoring labor migrants' employment and income. One of the most critical questions for the future is to ensure that all migrants who come to Sweden under the labor migration system genuinely have the opportunity to support themselves in Sweden.

"We need more reliable monitoring and follow-up of labor migration. It is unsustainable that so many lack income while holding work permits," concludes Erik Sjödin.