Sweden urged its citizens to welcome immigrants a decade ago. Its recent shift in policy has been significant.

• Sweden is commonly perceived as a progressive utopia in Europe, characterized by its robust economy, exceptional standard of living, and welcoming society.
• The center-right coalition government, supported by the nationalist and right-wing Sweden Democrats party, has taken a more restrictive approach to immigration.
• Despite the country's boasting of reduced immigrant numbers, economists argue that the economic advantages are questionable, taking into account factors such as growth and productivity.

Sweden is commonly perceived as a liberal utopia in Europe and beyond, characterized by its stable economy, high quality of life, and open and progressive society.

In 2014, Sweden and other European countries experienced an influx of asylum seekers from war-torn areas in the Middle East, particularly Syria, which demonstrated their reputation for acceptance and tolerance.

In the midst of the controversy, Sweden's then-Prime Minister Fredrik Reinfeldt urged citizens to "show tolerance," saying, "I understand that this will create tension. However, I urge the Swedish people to exercise patience and open their hearts."

In 2014, Sweden received 81,301 asylum seekers. By the following year, the number had nearly doubled to 162,999. In November 2015, Sweden requested relief.

"Sweden is no longer able to accept asylum seekers at the same level as before, and I am saddened by this," Prime Minister Stefan Löfven stated during a press conference where the deputy prime minister cried.

Sweden's immigration policy has been tightened under the center-left coalition government until late 2022 and became even stricter under the current conservative administration led by the center-right Moderate Party, with support from the far-right Sweden Democrats.

'Paradigm shift'

Sweden's government has become increasingly restrictive and hostile towards immigration under the leadership of the nationalist party, reversing years of liberal policy in the area.

The organization is undergoing a "paradigm shift" in its migration policies to promote "sustainable immigration."

Over 20% of Sweden's population, which is approximately 2.1 million individuals, were born outside of the EU, with the most common non-EU countries of birth being Syria, Iraq, Iran, Somalia, and Afghanistan.

The current center-right government has announced a range of initiatives and policies aimed at reducing undocumented immigration. These include stricter asylum legislation, tougher rules on family members joining immigrants already in Sweden, and new initiatives to deport or repatriate migrants, including financial incentives. Additionally, the government has proposed increasing its powers to revoke residence permits.

The government aims to decrease the number of low-skilled laborers migrating to Sweden by introducing a new immigration law that only grants work permits to immigrants earning a minimum monthly salary of 80% of the median Swedish salary, which is currently 35,600 Swedish Krona ($3,455). However, certain professions, such as domestic care workers, will be exempt from the new requirements.

Stockholm has openly declared its intention to revise its immigration policy in order to combat fraud and address the issue of a "shadow society" of migrants who lack legal residency in the country.

The increase in undocumented migrants in Sweden has led to a rise in gang violence and organized crime in low-income, immigrant communities.

Stockholm maintains that it will maintain "dignified reception standards," but declares that "those who lack a basis for protection or other legal right to remain in Sweden must be expelled."

The "snitch law" proposal has been met with criticism from both trade unions and human rights organizations, who argue that it will create labor shortages and marginalize people.

Jacob Lind, a researcher at Malmö University in Sweden, stated that the government's quick reversal of its migration policy has caused dismay among Swedes who had previously welcomed refugees, and has left many migrants in a state of uncertainty.

In 2015, there was a massive civil society movement aimed at assisting and accommodating large numbers of people. However, many of them experienced betrayal when the policies unexpectedly shifted.

"Prior to November 2015, individuals were encouraged to "open their hearts" and "we don't build walls." People were expected to assist one another and step in. However, the government shifted its stance, making it more difficult for immigrants to enter and also making life harder for those already in Sweden. As a result, the situation for those who were let in and helped rapidly became very difficult."

The government was accused by Lind of scapegoating migrants, with the statement that they are "basically the cause of all problems, which of course is not true."

Despite the difficulties and expenses involved in assisting people and integrating them, we understand that it takes time. However, some individuals are exploiting these issues and claiming that all problems in Sweden are due to integration and migration.

Changing attitudes

The shift in social attitudes toward immigration is not limited to Sweden and is also affecting the rest of Europe.

In the past ten years, the European Union has urged its member states to accept asylum seekers and refugees escaping war zones in the Middle East, including Syria, Iraq, and Afghanistan.

In 2016, Europe received approximately 5.2 million refugees and migrants, with Germany taking in over a million of them, according to the UN Refugee Agency.

Across the continent, a surge in support for right-wing parties calling for strict immigration limits occurred as anti-immigration sentiment rose among vast numbers.

Sweden's government reports that its strict policies are successful. Since August, Sweden's justice ministry has seen a decline in the number of immigrants and asylum seekers, with more emigrants than immigrants for the first time in half a century.

Since 1997, Sweden is projected to have the lowest number of asylum seekers, and for the first time in over 50 years, the country has experienced net emigration, according to the ministry's statement, which was based on data from the Swedish Migration Agency.

The difference between immigration to and emigration from a specific region in one year is referred to as net migration or emigration. If more individuals are leaving a country than moving to it, it indicates positive net emigration.

Despite the EU's asylum seeker numbers remaining stable at a high level, Sweden has seen a 27% decrease in asylum applications from January to July 28 this year compared to the same period last year, according to the justice ministry.

Sweden is projected to have its lowest number of asylum seekers in 23 years, according to Minister for Migration Maria Malmer Stenergard.

Economic impact to be seen

While Sweden boasts about its lower immigrant numbers, economists argue that the economic benefits are uncertain, taking into account factors such as economic growth, productivity, population growth, and potential labor shortages.

J.P. Morgan's chief Scandinavia economist, Morten Lund, stated that Sweden's new immigration rules may affect the economy in several ways, but the extent of the impact is uncertain.

If productivity decreases due to labor shortages, growth will be lower, as both total hours worked and productivity will decrease.

Lund stated that although restrictive migration policies may have a slight impact on inflation, the effect is uncertain and likely to be modest.

Immigration has a significant impact on the housing market. While higher immigration leads to increased consumer demand and demand-push inflation, lower immigration can lead to less demand and hence lower demand-push inflation. Additionally, less immigration can reduce the need for new housing, which can dampen the structural imbalance of housing under-supply and potentially lead to less increases in house prices, as stated by Lund.