Two cases and three observations are presented regarding globalization and its impact on local labor markets in Sweden. Case 1 details job losses and gains at a tire factory in Gislaved between 2002 and 2003. Case 2 discusses wage cuts and increased investment at R&D facilities for AstraZeneca and Ericsson in Lund after the financial crisis. Observation 1 indicates internal investment meetings are important for assessing plant competitiveness. Observation 2 states that once a plant closes it rarely reopens. Observation 3 shows industrial regions have deeper internationalization than major cities, with implications for local GDP and politics.

1. Two cases and Three
observations
Per Tryding
Phd, Vice president
Chamber of Commerce Southern Sweden, Malmö

2. Case 1.
Gislaved
Continental
• 774 employees laid off 2002
• Within one year2003
• 320 new job
• 89 unemployed
• 43 retained by Continental,
• 44 decommissioned the facility
• 70 in further education
• 65 retired
• Lower average wages

3. Case 2.
R&D in Lund
• Astra Zeneca
• Ericsson
• Wage cuts in the years after
financial crisis
• Now: record investment

4. Observation 1 –internal site investment conferences are
the litmus test of competetiveness
• All these examples are sites/plants in large groups
• The internal competion within groups is very tough
• Site managers are the people who communicate and manage ”global
competion” at internal investment meetings
• This is where ”competetiveness” of countries, regions and plants
plays out

5. Observation 2 – sites/plants tends to leave
forever (especially industrial)
• When a legal entity is closed it rarely comes back
• The group has no interest in leaving leftovers for future competitors
• All permits are tied to the legal body – red tape will hamper restoraton
• Instead skilled labour forms the basis for new growth
• Startups
• Or existing companies that need the skill set

6. Observation 3
degree of
globalisation reveals
”hot spots”
• Internationalization is deeper
in rural industrial regions
than big cities
• ..in terms of how large part of
GDP (and productivity) is
generated by firms who are
engaged in direct global
competition
• This is likely to have political
implications
Local labour markets: exposure to global markets, 2017
Export
and
imports
of
goods
in
relation
to
gdp
(wages)
Share of employment in manufacturing, %