The working poor look set to finance house price rescue

Published 8 April 2023 at 12.02

Economics. Since the Riksbank opened in March to ignore raising the interest rate in April, housing prices have once again begun to move away, while wage increases in industry have been set at 4.1 percent. For many low-income earners and young people, however, wages are expected to increase by 0 percent.

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The poorest wage earners are expected to be completely without a wage increase this year, despite the so-called the mark in the agreement movement was 4.1 percent, which is a record high.

Those who will be without wage increases are mainly employed in companies without collective agreements in pressured industries, such as the restaurant industry where many young people work, reports Sveriges Radio.

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The coming years are now expected to be really tough for Sweden's poorest workers, who do not receive benefits and also do not receive a share of the subsidies that the middle and upper class receive from the government, such as the electricity subsidy for home owners.

< p>The difference is also increasing between real wage changes and real disposable income, which is affected by tax cuts, deductions, car and home owner allowances and other benefits that are primarily aimed at voter groups with a slightly higher income.

The proportion of the working poor has been between 1.5 and 2 percent of the population during most of the 2000s, but is now expected to increase rapidly.

The limit to be counted as working poor corresponds approximately to the real level of social benefits or guaranteed pension, and is today 13,300 kroner in income after tax.


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