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Social security in Sweden 1993–2022

Expenditure on social protection decreased in relation to GDP

Statistical news from Statistics Sweden 2024-03-26 8.00

Social protection expenditures as a share of GDP decreased from 27.8 percent in 2021 to 26.7 percent in 2022. This was the smallest share of GDP since 1993. Social protection expenditures in current prices increased, but less compared to the increase of GDP.

In 2022, total expenditures on social protection increased by SEK 69.3 billion, which corresponds to 4.5 percent. The corresponding increase between 2020 and 2021 was 3.2 percent. Total expenditures for social protection amounted to SEK 1 597 billion in 2022.

Expenditures on social protection as a share of GDP has varied from year to year. The share fell from 35.6 percent in 1993 to 26.7 percent in 2022. Between 1993 and 2000, the share decreased steadily, and amounted to 28.0 percent in 2000. In the 2000s, the share varied between 26.7 percent (in 2022) and 30.1 percent (in 2003).

Expenditure on the elderly was the largest expenditure item

The largest expenditure item was the elderly, which amounted to 45 percent of social benefits in 2022.

Percentage distribution of expenditure on social protection by function, 2022

Graph

Expenditures on the elderly increased by SEK 50 billion, an increase of 7.6 percent between 2021 and 2022. Old age pension, which is the largest item of expenditure on old age, increased by SEK 41.7 billion, which corresponds to 8.3 percent. The major reason was an increase in the number of pensioners.

Health care

Expenditures on health and medical care, the second largest expenditure item, increased by SEK 18 billion, which corresponds to 4.2 percent. Expenditures on both inpatient and outpatient care increased. Inpatient care increased by SEK 3.5 billion, which corresponds to 2.5 percent more than last year. Outpatient care increased by SEK 5.1 billion, which corresponds to 2.5 percent as well.

Expenditures on paid sick leave increased by SEK 9,6 billion in the same period. Increases were noted for both employer sick pay (days 1-14) and sickness benefit from the government agency responsible for social insurance benefits. Sick pay and sickness benefit increased by SEK 6.5 billion and SEK 4,8 billion, respectively. The increase in employer sick pay can partly be attributed to an increase in sick leave due to the Covid-19 pandemic in the beginning of 2022, compared to the previous year. For the sickness benefit, the number of persons who received the benefit was about the same as in 2021, but expenditures, as well as the number of payouts, increased. There were two main explanations: first, the compensation increased during 2022, and second, more people became eligible to the benefit for a longer period due to changed legislation.

Disability

In 2022, expenditures on disability increased by SEK 4.7 billion, which corresponds to 3.5 percent. The item comprising assistance in carrying out daily tasks increased by SEK 0.5 billion, which corresponds to 1.4 percent, while Accommodation increased by SEK 1.9 billion, which corresponds to 5.9 percent. Cash benefits in the form of disability pension increased by SEK 0.6 billion; corresponding to 1.7 percent.

Family/Children

Expenditures on family and children increased by SEK 4.4 billion, corresponding to an increase of 2.9 percent between 2021 and 2022. Birth grants increased by SEK 0.3 billion, corresponding to an increase of 0.9 percent.

Benefits in kind also increased in total in 2022, and the largest item comprising Child care for preschool children increased by more than SEK 1.9 billion and amounted to SEK 54.9 billion. The item comprising Accommodation increased by SEK 1.2 billion, corresponding to 6.2 percent.

Social exclusion

Expenditures on other social exclusion were more or less unchanged between 2021 and 2022. Expenditures have decreased since 2017, following relatively large increases due to a high level of immigration, especially during 2016. Social assistance etc. decreased by SEK 0.9 billion, while the other items increased a little or were more or less unchanged. Accommodation increased the most by SEK 0.7 billion. Total expenditures on social exclusion amounted to SEK 29.0 billion in 2022.

Unemployment

In 2022, total expenditures on unemployment decreased by 11.2 billion or 20.1 percent, compared to 2021. Several benefits intended to mitigate the effects of the Covid-19 pandemic were reduced in 2022. The item comprising Full unemployment benefit saw the largest decrease by 7.5 billion, corresponding to 33.0 percent, and the expenditure was back at roughly the same levels as before the pandemic. During the pandemic, it was decided to temporarily change certain conditions in the Full unemployment benefit so that more people could receive the benefit. Some of these conditions were removed during 2022. Among the other cash benefits, expenditures on Vocational training allowance decreased by SEK 3.0 billion, corresponding to 14.9 percent between 2021 and 2022.

Benefits in kind also decreased in 2022. The item comprising Vocational training saw the largest decrease by SEK 1.8 billion corresponding to 21.7 percent.

Social protection expenditure in SEK million by function and in relation to (%) GDP
Function 2017 2018 2019 2020 2021 2022
1. Sickness/Health care 341 184 360 613 378 513 416 588 436 865 455 215
2. Disability 129 644 133 179 132 915 132 000 133 442 138 169
3. Old Age 569 490 587 960 607 915 636 941 661 038 711 474
4. Survivors 13 375 12 767 12 412 12 050 11 458 11 058
5. Family/Children 135 601 145 343 149 835 150 205 153 110 157 511
6. Unemployment 45 402 42 272 39 776 52 921 55 720 44 511
7. Housing 18 269 19 168 19 043 20 858 20 682 21 596
8. Social exclusion nec. 48 884 39 450 34 559 30 864 29 055 28 996
Expenditures for social protection benefits 1 301 849 1 340 752 1 374 968 1 452 427 1 501 370 1 568 530
As a % of GDP 28.1 27.8 27.2 28.8 27.4 26.3
Administration costs/Other expenditures 26 577 26 715 27 124 27 476 26 519 28 685
Social protection expenditure 1 328 426 1 367 467 1 402 092 1 479 903 1 527 889 1 597 215
As a % of GDP 28.7 28.3 27.8 29.4 27.8 26.7

International comparisons 2021

In the early 1990s, Sweden had the highest level of social protection expenditure in relation to GDP compared with other countries in the EU. In recent years, Sweden’s expenditures have been just below the EU average. This was also the case in 2021 when Sweden had a share of GDP at 27.8 percent, in comparison to EU-27, which had a share of GDP at 29.9 percent.  

In 2021, France had the highest level of expenditure on social protection as a share of GDP, at 35.8 percent. Austria had the second highest levels of expenditure on social protection, at 33 percent of GDP, followed by Germany and Italy at just below 32 percent of GDP. In the Nordic countries, Finland had the highest level of expenditure on social protection as a share of GDP, at 31.2 percent. Denmark, Iceland and Norway followed with shares at 30.7 percent, 29.5 percent and 26.6 percent of GDP respectively. Ireland was the EU country with the smallest share, 13.6 percent.

Database - Eurostat (europa.eu)

The different taxation regulations pose a major problem for international comparisons. Some countries regulate taxes on certain benefits, while others do not. In addition, some benefits in certain countries consist of tax deductions, while other countries pay the benefit directly. Slightly more than half of the social protection benefits in Sweden are cash benefits. Most of these cash benefits are taxable. If taxation is taken into account, the percentage of GDP from benefits in 2022, excluding administration costs, fell from 26.3 percent including tax to 23.5 percent excluding tax.

More information

This data is also available in a database on Eurostat’s website under Population and social conditions – Social protection.

Definitions and explanations

Social protection is defined here as all services from public or private organisations with the purpose of reducing the burden on households and individuals from specially defined risks or meeting specially defined needs. A prerequisite is that these services do not require a return of services and that they are not based on individual arrangements. The benefits may be either in cash or in kind.

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

Statistical agency

Statistics Sweden

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Tove Lundén

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