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Focus on Business and Labour Market 2014:

Offshoring reduces employment in Sweden

Statistical news from Statistics Sweden 2014-12-10 9.30

Offshoring reduces the number of job vacancies in Sweden and the reduction is greatest for enterprises that move their entire core activities abroad. Between 2009 and 2011, 6 200 jobs disappeared as a result. It is not possible to see any clear productivity effect of moving operations abroad, even if there are indications that enterprises that only move their support operations abroad are more productive.

Focus on Business and Labour Market studies how moving enterprises' operations abroad affects employment in Sweden as well as whether enterprises become more productive by moving abroad. The study shows that the number of job vacancies in Sweden decreases as a result of offshoring; 6 200 jobs disappeared between 2009 and 2011 as a result.

The analysis points out that enterprises that moved operations abroad have not become more productive after a certain period. However, in 2011 productivity was 10.6 percent higher for enterprises that moved their support operations abroad compared with enterprises that did not do so. Similar increases in productivity could not be seen for enterprises that moved their entire operations abroad.

The publication includes three more articles directed towards productivity or the labour market:

Higher productivity with broadband

To measure how information and communication technology (ICT) influences enterprises' work productivity, the proportion of employees who are online via broadband has been studied. The analysis studies 14 countries with different levels of broadband connection, and shows a positive link between the proportion of employees who are connected to broadband and the work productivity of the enterprise. However, the strength of this link varies among countries.

Inheritance increases the probability of starting a business

This article analyses what influences individuals to combine employment with running their own businesses. Among other things, the study shows the probability of becoming a so-called "combiner" if a close relative has business experience. Correspondingly, business experience of colleagues and unexpected additional capital such as an inheritance have a positive effect.

30 year-olds switch jobs more often than 50 year-olds

The connection between the labour market situation in municipalities and the probability that an individual switches jobs is studied in the final article of the publication. The analysis shows that the probability of switching jobs is higher when the economy is good. Younger persons aged 30–39 more often switch jobs than persons aged 50–59, which is because the younger group hopes to get a better salary, at the same time as the older group is less favourable to changes and the economic aspect is less important.


Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.

Statistical agency and producer

Statistics Sweden, National Accounts



Andreas Lennmalm

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