Despite a widespread perception that Swedes work a lot, new statistics show a completely different picture according to the Confederation of Swedish Enterprise. A new report reveals that Sweden is among the countries in the Western world with the lowest actual working hours. Only Norway, Denmark, and Germany have a slightly shorter annual working time.

According to Petter Danielsson, a labor market economist, the image that Sweden’s residents work extremely much is not accurate. He believes that the debate often misses the point when comparisons are made with these particular countries.

– It’s often said that we are fourth among the countries that work the least, and the conclusion is drawn that we work a lot. But it’s actually the opposite, he says in a press release from the Confederation of Swedish Enterprise.

According to the report, annual working time is the most accurate measure, as it includes everything from overtime to vacation and parental leave. Sweden stands out due to its generous leave systems, which push down the total working hours over the year.

– You can look at the standard weekly working hours or all sorts of measures. But if you look at annual working time, you capture all effects—such as our generous rules for parental leave and vacation, says Petter Danielsson.

The statutory 40-hour workweek was introduced as early as 1973, but in practice, working hours have gradually decreased since then. Today, virtually all collective agreements contain some form of working time reduction, for example through working time accounts or extra time off.

At the same time, working hours are closely linked to productivity. Countries with higher productivity can to a greater extent enjoy increased prosperity in the form of more free time, he says.

– They are more productive than we are. A wealthy country with a productive economy can afford either higher wages or shorter working hours, says Petter Danielsson.

However, he believes that Sweden has already gone further than many comparable countries.

– If anything, we have implemented a bit more working time reduction than what is normal for an OECD country given how productive our economy is, says Petter Danielsson.

The issue of further reducing working hours has recently come up for discussion after the Swedish Trade Union Confederation (LO) demanded negotiations on a general reduction. One proposal raised is a 35-hour workweek—something that, according to the Confederation of Swedish Enterprise, would have significant consequences. Sweden would then have the absolute shortest annual working hours in the entire OECD, he believes.

Such a change, especially if carried out without pay cuts, would, according to him, result in increased costs for companies.

– A general reform outside the regular negotiation framework would be a pure cost shock for companies, he says, warning that goods and services will become more expensive.