How can more people contribute as the dependency ratio rises
As Sweden's population ages, fewer people of working age will be supporting a growing number of older people. In a report for the Expert Group on Public Economics (ESO), Professor Emeritus of Economics Eskil Wadensjö examines measures that could help more people work and remain active in the labour market for a larger part of their lives.
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Like many other high-income countries, Sweden is experiencing demographic change as the proportion of older people increases while the share of the population of working age declines. This development poses challenges for both the labour market and the financing of welfare systems.
In the report Joining Forces: An ESO Report on How More People Can Contribute as the Dependency Ratio Rises, Eskil Wadensjö discusses a broad range of measures aimed at strengthening labour supply. These include enabling people to work longer, helping young people enter the labour market more quickly, improving employment opportunities for people with disabilities, and facilitating faster labour market integration for foreign-born individuals in jobs that match their qualifications.
The report emphasises that there is no single solution to the challenges associated with demographic change. Instead, a combination of measures is required, some of which may have effects in the short term, while others can contribute to higher employment rates over the longer term.
Read the report (in Swedish):
Samlade krafter – ESO-rapport om hur fler kan bidra när försörjningskvoten ökar.
Last updated: 2026-11-11
Source: Swedish Institute for Social Research