--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-22/the-myths-and-reality-of-deindustrialization-in-sweden-the-role-of-productivity/" title: "The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:33:44+00:00" date_modified: "2026-07-13T07:33:44+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2011" ipm_keyword: - "deindustrialization" - "employment" - "input-output" - "manufacturing" - "nominal GDP" - "productivity" - "real GDP" - "services" - "Sweden" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "International" - "Sweden" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity Canonical URL: https://csls.ca/ipm-archive/ipm-issue-22/the-myths-and-reality-of-deindustrialization-in-sweden-the-role-of-productivity/ # The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-22-3-Lind.pdf) Cite this article × Cite this article as: Lind, Daniel. 2011. “The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity.” International Productivity Monitor, No. 22 (Fall 2011): 29–43. https://www.csls.ca/ipm-archive/ipm-issue-22/the-myths-and-reality-of-deindustrialization-in-sweden-the-role-of-productivity/ ## Author: - Daniel Lind Swedish Confederation of Professional Employees (TCO) ## IPM Issue 22 Fall 2011 pp. 29–43 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Climate Change and Productivity — An Exploration Dirk Pilat Fall 2024 | IPM Issue 47 | pp. 54–86](https://csls.ca/ipm-archive/ipm-issue-47/climate-change-and-productivity-an-exploration/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article analyzes three possible hypotheses behind deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nominal GDP has gone in the same direction. However, the high productivity growth in manufacturing has lead to an increase in its share of real GDP since the beginning of the 1990’s. Using input-output analysis, it is shown that the loss of employed who work with satisfying final demand for manufactured goods is less pronounced than what is shown by official statistics. The explanation for this is a deeper interaction with the rest of the economy, particularly in relation to knowledge-intensive service industries. RÉSUMÉ Cet article présente l’analyse de trois hypothèses possibles pour expliquer la désindustrialisation en Suède. Sa principale conclusion est que la désindustrialisation est à la fois mythe et réalité. Pendant l’après-guerre, l’emploi a chuté de façon relative et absolue dans le secteur de la fabrication, et sa part du PIB nominal a suivi cette tendance. Néanmoins, depuis le début des années 1990, la croissance rapide de la productivité du secteur de la fabrication a entraîné une hausse de sa part du PIB réel. L’analyse des intrants et extrants permet de montrer que la chute du nombre de personnes qui travaillent pour répondre à la demande finale de produits manufacturés est moins marquée que la chute de l’emploi dans le secteur de la fabrication, selon sa stricte définition. Ce changement serait causé par une intégration accrue de la fabrication au reste de l’économie compte tenu des secteurs de service à forte intensité de savoir, apportent davantage d’intrants à la fabrication. IN THE LAST THIRTY YEARS, the share of manu- Cet article analyse trois hypothèses possibles sous-jacentes à la désindustrialisation en Suède. La principale conclusion est que la désindustrialisation est à la fois un mythe et une réalité. On a observé une diminution de l’emploi manufacturier en termes tant relatifs qu’absolus dans la période d’après-guerre, et la part du PIB nominal a suivi la même direction. Cependant, la forte croissance de la productivité dans le secteur manufacturier a entraîné une augmentation de sa part dans le PIB réel depuis le début des années 1990. À l’aide d’une analyse des entrées-sorties, il est montré que la perte d’emplois liés à la satisfaction de la demande finale de biens manufacturés est moins prononcée que ce que montrent les statistiques officielles, en raison d’une interaction plus profonde avec le reste de l’économie, notamment avec les industries de services à forte intensité de connaissances. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-22-3-Lind.pdf)