Government's new labor immigration requirements risk failure despite stated ambitions
The government is today presenting new rules for skilled labor immigration, emphasizing in particular the tech sector's need for international talent and its importance for the country's growth and future tax revenues. We welcome the fact that the Moderates, Liberals, Christian Democrats and Sweden Democrats have listened to our views and those of others and chosen not to raise the wage requirement for labor immigration to 100% of the median wage. The proposal is instead a wage requirement of 90 percent of the median wage, equivalent to SEK 33,390. But an increase from 80% to 90% does not mean that the rule has a net positive effect on advanced labor immigration, that would be to embellish reality.
On the contrary, the increased wage requirement risks making it more difficult to recruit several important occupational groups in the tech sector. For example, operations technicians (SEK 28,600), support technicians (SEK 26,100), system administrators (SEK 32,800) and network and systems technicians (SEK 31,700) are paid below the proposed median wage. These professions are often the backbone of the digital infrastructure and without them, the development, security and operation of our digital systems cannot function.
It is positive that the government is abandoning proposals for exemptions from the wage requirement with labor market tests and bureaucratic lists. But the question remains: how will the system of exceptions to the main rule work in practice? What criteria should the government use to determine when exceptions can be made and how to ensure that the exceptions themselves do not become a new regulatory burden? Given that the government itself highlights the tech sector as a key area during the press conference, it should be obvious that the tech professions in particular are covered by exemptions. Otherwise, the ambitions risk remaining just words. But if the goal is really to attract the skills Sweden needs, the system must be both predictable and flexible. Otherwise, we risk closing the door to the very specialists who will build the digital Sweden of the future.
Talent attraction is an issue that needs to be tackled strategically. Sweden needs to have a strategy and set explicit goals from the highest political level. There are, for example, other important issues on the government's table such as increased expert tax and conditions for R&D deductions, improved conditions for doctoral students and researchers that can actually lead to a net effect for advanced labor immigration. Through a holistic approach, Sweden can take advantage of the window that has opened in the West. In a situation where the US under Trump plans to tighten its visa rules, a unique opportunity is opening up for Sweden to position itself as an attractive option for international talent.
Ana Andric, Industry Policy Expert
Pia Högset, Industry Policy Expert
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Response: Labor immigration is the key to success