Nordic Economic Policy Review 2025

The paper by Kjellberg (2025) provides an in-depth look at changes in union density in the Nordic countries. It starts by discussing why the density is so much higher in the Nordics than in other countries. The Ghent system is a particularly notable factor in Denmark, Finland and Sweden. The paper then discusses the downward trend in union density and proposes possible explanations for the differences between the Nordic countries.

It would be interesting to put the differences across the Nordics into a broader perspective. Figures 1 and 2 illustrate union density in selected OECD countries since 2000. It is much higher than the OECD average in all the Nordic countries. Only Belgium – another Ghent country – comes close to the Nordics with a level close to Norway.

Figure 1. Union density in the Nordics

Figure 2. Union density in selected European countries

Note: Percentage of employees.
Source: OECD Employment and Labour Market Statistics.

The data also emphasises that the downward trend in union density is common everywhere. The OECD average has declined steadily by about 5 percentage points since 2000. Union density has also fallen in Germany, the Netherlands and the United Kingdom, but from a much lower starting point than in the Nordic countries.

The widespread decline in union density may indicate that changes in the Nordic countries reflect more general factors. Several academic studies have studied the phenomenon. Globalisation, new technology and changing norms (greater ‘individualism’) are commonly cited as key factors. However, convincing evidence is scarce, and the decline remains largely unexplained.

It would also be interesting to link the changes in union density to parallel changes in collective bargaining. Figure 3 shows that coverage by collective bargaining agreements has remained more or less the same in the Nordic countries since 2000. During the same period, the OECD average declined at about the same pace as union density. Coverage by collective agreements has also fallen in Germany, the Netherlands and the United Kingdom. 

Figure 3. Collective bargaining coverage in the Nordics

Figure 4. Collective bargaining coverage in selected European countries

Note: Percentage of employees.
Source: OECD Employment and Labour Market Statistics.