Response to interpellation 2024/25:408 on the wave of bankruptcies within the construction industry

Statsrådet Andreas Carlson (KD)

Mr. Speaker! Leif Nysmed has asked me if I and the government will take any urgent measures here and now to stop the wave of bankruptcies within the construction industry.

I would like to emphasize initially that the situation for the construction industry is a pressing issue for the government. An efficient and well-functioning construction sector provides the conditions for increased housing construction. In recent years, however, the construction sector has had a difficult time as a result of sharply rising production and financing costs, while at the same time the purchasing power of households has deteriorated. The effects have been a reduced housing construction and a large number of bankruptcies.

Since the government took office, one of its most important priorities has been to reverse the economic development in Sweden as quickly as possible. I can now state that inflation has fallen and interest rates have been lowered. The economy has begun a gradual recovery.

The housing construction sector is also now showing some signs of recovery. According to the analysis firm Valueguard, housing prices have risen by 4.5 percent during the last twelve months. And in the two latest economic barometers from Konjunkturinstitutet, the house builders report an expected increase in construction over the coming three months. Furthermore, the outlook for the construction market is expected to improve to a very large extent over a one-year period.

The Government has focused its work on addressing the structural barriers that characterize the construction and housing market, so that Sweden will be better equipped and to enable increased construction of housing when the conditions improve.

The government is taking a number of measures here and now and has recently presented two major regulatory simplification proposals. One concerns significant relaxations in the building requirements for student housing. Boverket's calculations of a number of typical cases of student housing show that the regulatory relaxations can provide cost reductions of between 30,000 and 46,000 kronor per housing unit.

Another simplification proposal concerns a new, simpler and more efficient regulatory framework for building permits. The proposal increases the number of measures that can be carried out without a requirement for a building permit and that can be permitted without hindrance in detailed plans and area regulations. A previous estimate of how many fewer cases there could be states that it could involve a reduction of approximately 30–40 percent of today's permit cases.

The regulatory simplifications aim to both create more housing and increase property owners' opportunities to decide how their own property shall be developed.

The Government has also tasked Boverket with proposing relaxations of the building requirements in the Planning and Building Act during renovation and reconstruction. The Government is also allocating funds for housing development in northern Sweden and intends to introduce a possibility to lower credit guarantee fees in establishment and transition municipalities throughout Sweden.

In conclusion, I want to point out that the government is following the situation in the construction industry, has an active dialogue with the parties in the construction and housing market, and is continuously considering the need for further measures. I look forward to returning in the next speech with the measures that the government presented this morning.

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Leif Nysmed (S)

Mr. Speaker! I would like to thank the Minister for the answer.

The reason for my question is that the wave of bankruptcies within the construction industry is the deepest crisis in 30 years. During 2024, the number of bankruptcies within the construction sector rose sharply once again. 2,032 companies within the construction sector went bankrupt, and a total of 5,875 employees were affected by the construction bankruptcies, according to Tillväxtanalys. These are the highest figures since the construction crisis of 1993, according to the employers' organization Byggföretagen.

The construction crisis and the large number of bankruptcies is no news to anyone who is slightly informed about how the market looks. Now we stand here in 2025, and the bankruptcies have increased sharply from year to year. In 2022, 1,079 construction companies went bankrupt, and in 2023, a further 1,487 companies went bankrupt, according to Creditsafe. The signals have been clear and alarming throughout the entire parliamentary term. Serneke, Byggmästare SA Englund, Mälardalen Trä & Betong, among others, are some of all the companies that have gone bankrupt during 2025.

According to Byggföretagen, they also see no brightening for the rest of the year. Byggföretagens economic policy chief said in the newspaper Näringslivet: ”If this crisis doesn't make the government wake up, then I don't know what they are waiting for.” I would also like to quote what Byggnads chairman Kim Söderström said in the same newspaper, but those words unfortunately do not fit in the speaker's chair. These are harsh words from both parties within the construction industry that cannot be ignored.

The Minister mentions regulatory simplifications for student housing and attefallshus, which in no way addresses the problems for the construction industry that I am asking about here and now. Now, however, the government is presenting a proposal to the Riksdag on how the construction industry could be supported. Industry representatives, the timber and furniture companies, the construction companies, the installation companies, mechanical contractors and others are demanding more measures. They say that "more must be done to kickstart the severely battered construction industry here and now in the short term."

What I am referring to is the proposal for the increased tax deduction, which the Minister will surely present a bit more in the next contribution. It is good that the government has understood that their luxury deduction did not lead to any new jobs. An increased tax deduction can have a certain effect, but it would have been more well-thought-out if it had simultaneously been targeted towards climate and energy measures and if the measure had arrived a year ago instead of the luxury deduction.

It is doubtful what the effect will be with a support that applies for half a year. It also does not have any effect whatsoever on housing construction. The construction companies said this morning: "We have been clear that an increase of ROT will not reverse the crisis for housing construction."

It is obvious that the government has not listened to the Social Democrats. But listen to the industry! Listen to those who are in reality! Take off the ideological blinkers!

The government's policy is not sufficient. 4,600 companies have gone bankrupt, and the bankruptcies continue.

The Government notes that inflation has fallen and that interest rates have been lowered. But now we see an opposite situation with rising inflation and that the interest rate cuts may not occur until 2028, according to the Riksbank. Combating inflation is important, but we must be able to handle several problems simultaneously. Letting the construction industry enter its deepest crisis in 30 years is pure stupidity.

Mr. Speaker! I want to ask the Minister: How many more thousands of companies within the construction industry will have to go bankrupt before the SD-led government realizes the gravity of the situation?

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Serkan Köse (S)

Mr. Speaker! I thank my colleague Leif Nysmed for a very important interpellation. The construction industry is in a historical crisis. Sometimes it is important to repeat this.

During 2024, just over 2,000 construction companies went bankrupt. It is the highest figure since 1993. Almost 6,000 construction workers have lost their jobs. The metropolitan counties are particularly affected, where 66 percent of all bankruptcies have occurred. Stockholm, my own region, is worst affected. There, four out of ten bankruptcies have occurred within the construction industry.

Now, in 2025, we see no improvement. Bankruptcies are 40 percent higher than two years ago. The industry's actors have clearly expressed the need for immediate measures. In a debate article in Dagens industri on February 26, the actors emphasized the importance of improving the efficiency in the planning and building processes to shorten lead times and thereby stimulate construction. This includes resource allocation, process improvement, and increased competence development within the municipalities.

Mr. Speaker! The construction companies are sounding the alarm. The trade unions are warning. The industry and economic experts warn that we risk losing a generation of construction workers, just as we did during the crisis of the 90s. In this situation, one can ask what the government and the Sverigedemokraterna are doing. The answer we get from the Minister is that the government is following the developments, simplifying construction requirements, and hoping for a recovery. But following the developments does not build any housing and does not save any jobs within the construction industry, Mr. Speaker.

The government says that the housing shortage has increased by 4.5 percent and that the Konjunkturinstitutet sees positive signals. But a housing bubble does not solve the housing shortage and does not help the construction companies that have already gone bankrupt. The government says that measures are being taken here and now, but where are the measures, Mr. Speaker? I look forward to listening to the Minister's next contribution.

Lowered construction requirements for student housing are good, but it is a marginal reform that affects an extremely small part of the housing market. Simplifications in building permit rules are good, but the construction companies need capital and stability, not just shorter processing times. Conversion of offices to housing can provide individual new homes but does not solve the shortage of rental apartments. This is not the housing strategy we are calling for, Minister, but a bandage on an open fracture.

What then is the biggest mistake? Well, that the government and the Sweden Democrats have abolished the investment support. That caused housing construction to come to a complete standstill. This is one of the reasons why the construction crisis looks the way it does.

Unlike the Sweden Democrats and the government, we Social Democrats have presented concrete proposals. This includes, among other things, reintroducing the investment support so that more housing is built, introducing a green rot deduction to promote sustainable renovation and energy efficiency, facilitating for the municipalities to streamline the planning and building processes through state support and incentives, introducing state credits so that construction companies can keep operating even during a recession, and investing in housing that people can actually afford, not just expensive condominiums.

Mr. Speaker! The construction industry is a backbone of the Swedish economy. Unfortunately, the government and the Sweden Democrats have not acted. The consequence of this is that we have lost thousands of jobs and that the housing shortage has worsened further. We have several times, not least in our debates with the Minister, demanded that the government should stop standing on the sidelines and instead take an active role in supporting the Swedish construction sector here and now.

Therefore, I want to ask the Minister: How many more construction companies must go bankrupt before the Minister acts? How many more construction workers must lose their jobs before the Minister acts? What level of crisis is required for you to act, Andreas Carlson?

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Statsrådet Andreas Carlson (KD)

Mr. Speaker! I would first like to inform Serkan Köse that we have just presented measures. This morning we had a press conference that can be accessed retrospectively. I interpret the questions as that Member Köse is not aware of the significant reinforcement we are now making of the deduction for renovation from 30 to 50 percent. It makes it cheaper to renovate, supports the economy generally, and is a targeted effort towards an industry that has had it very tough in the recession.

Serkan Köse also says here in the chamber that it was the removal of the investment support that was the reason why housing construction came to a standstill. But what was the reason that housing construction came to a standstill was, in fact, a very high inflation, which hit at the same time as Sweden entered a recession. That investment support that the member refers to did not lead to sufficient construction either, despite it being a period of economic expansion and even a negative interest rate environment. If one does not describe it in that way, it becomes a bit misleading, I think. Therefore, I wanted to explain that it was other factors that led to housing construction coming to a standstill.

What we have also presented today is a much more accurate tool to get housing construction started: a capital supplement to Norrlandsfonden. The purpose is to increase housing construction, not least in northern Sweden. But it is not designed so that it is limited to northern Sweden, rather it can also be used in other establishment and transition municipalities.

The members of the board are well aware of how it often is in municipalities that quickly need to build more housing as a result of industrial transition, investments, and scaling up of existing industry. When there is a need to produce housing quickly, it can be difficult to make the calculations work; perhaps 10–15 percent is missing. But a precise top-loan function organized via Norrlandsfonden can get housing construction started – not least in northern Sweden, but not limited to northern Sweden.

This is something that the coordinator Peter Larsson has proposed. I am very happy that I was able to present it this morning at the press conference. This work will be reinforced with an addition of 300 million kronor already this year.

Since it is designed as a top-loan function, it creates a significant leverage effect. We do not do as we did with the investment support and direct support to constructions that would have been built anyway – to the whole cake, so to speak – but here we proceed with precision and ensure that the calculations add up. These 300 million kronor could generate real estate investments and residential construction equivalent to 1.5 billion kronor. Since it is a top-loan function, the money can be withdrawn, moved, and used elsewhere when the valuation increases. That is how this construction is to be understood.

It will of course be important to follow this work moving forward. But now we get a good foundation with 300 million in capital injection, which, together with the reinforcement of the deduction at source, leads to more jobs being saved.

Leif Nysmed cited several different organizations. One of them was Byggföretagen. But he did not include the first sentence in the quote he reproduced: ”Byggföretagen välkomnar regeringens besked.” Right should be right, shouldn't it? He also did not mention that TMF today has come out and said: ”Detta är något svensk byggnäring kämpat hårt för att få igenom och det är mycket glädjande att det sker så snabbt.”

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Leif Nysmed (S)

Mr. Speaker! I thank the Minister for the answer. But it grates on me when the Minister describes the development as positively as he does. Even when we discussed this before Christmas, he described the development as pleasing and said that there were signs of recovery. Now he answers that there are certain signs of recovery. But again: 2,032 companies in the construction sector went bankrupt. That is the highest figure since 1993.

Tanja Rasmusson from Byggföretagen says in Tidningen Näringslivet: "It remains dark, especially for the housing developers. The layoff figures have increased. In February, 1,300 people were laid off." Has the Minister completely missed what she is saying? It is true that Byggföretagen welcomes the government's announcement, but it has a marginal effect. That is not what solves the housing construction.

I have been in the construction industry since 1989. It is impossible to avoid mentioning unemployment in connection with bankruptcies. As a construction worker, I experienced the construction crisis in the 90s, with unemployment and anxiety. I know how tough it is for all those who have now become unemployed. From September 2024 to February 2025, the number of unemployed in Byggnads akassa increased by 2,500 people to 14,000.

It is people we are talking about. It becomes far too easily just numbers in the statistics. It bothers me a bit that we do not take the construction crisis more seriously and see the people behind the unemployment figures. It is about people who have lost their company and also about all those who feel a great anxiety about more bankruptcies and increased unemployment.

But let me go back to the bankruptcies. I quote Byggföretagen again, which further in the article from the newspaper Näringslivet says that the recovery seems to be delayed and that very many economic signs are pointing in the wrong direction. And to a question about whether there could be more bankruptcies, they answer: Yes, there could, at least not fewer than during 2024.

Mr. Speaker! Different organizations are now responding that rot will not solve the great shortage. In any case, 2,500 new jobs will not be created with this during this period. And this with rot only applies for half a year. We must also hope that this from the Norrland Fund can contribute to some extent. I truly have hopes for that.

We must hope for this and follow the developments closely. But I see no joy yet. I do not yet see the positive effects. I feel great concern about the future, and my question to the Minister is: Where is the joy in the fact that an additional 2,000 in Byggnads akassa have become unemployed in the last half-year? Where is the positive recovery when Byggföretagen believe that at least as many companies will go bankrupt this year as well?

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Serkan Köse (S)

Mr. Speaker! Now, I did not say that it is only about reintroducing the investment support or that the removed investment support was the only reason. I mentioned very many other factors as well. The proposals that the Minister presented today are good. I welcome them. I think it is very good that the government presents economic incentives or measures to ensure that more housing can be built and that momentum can be gained within the industry.

But at the same time, I hear that the Minister takes it very lightly. It is a crisis within the construction industry. I expect the Minister can still say something about the situation we find ourselves in today. Leif Nysmed has accounted for the figures. Very many companies have gone bankrupt, and very many construction workers have become unemployed.

Very many who are watching this debate want to hear the Minister present an action plan. It is 6,000 construction workers who have lost their jobs, and they want to hear how they can return to work. Many want to return and work as construction workers. Many of them love their work. When there is nothing to go back to, we lose all that competence. The Minister said nothing about the generation that we are going to lose. That was indeed what happened during the 90s crisis.

According to the Stockholm Chamber of Commerce's analysis, employment in the construction sector in the Stockholm region could decrease by up to 20,000 jobs during 2025. Then we will see how many of the measures that the Minister presented will have an effect. Furthermore, an additional 8,000 jobs in the service sector are threatened.

One must also link the housing policy to the labor market policy, because without housing, people will not be able to take the jobs. We will have that debate a bit later.

I would like to conclude by asking the Minister: What is the concrete message that the Minister can give to all the construction workers who are watching this debate?

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Statsrådet Andreas Carlson (KD)

Mr. Speaker! I would like to thank Leif Nysmed and Serkan Köse for giving the tough situation faces, because it is about people.

Where is the joy in people going into unemployment, asked Leif Nysmed. There is no joy in that. We agree on that. It is a very tough situation for every person and every family who is affected. This is something that we take very seriously, and it is important to see what are the causes for the situation having become as it is and what we can do about it.

There is no single quick fix that solves problems that have built up over a long period regarding the structural obstacles. It is about lead times, regulations, access to land, and so on. It is also a question of production costs that have skyrocketed as a result of high inflation and as a result of the fact that we are in a recession.

It is important in an uncertain world to see that the Swedish economy stands stable despite the tough situation. There is room to invest now that we see that the recovery in the economy is underway but that it is proceeding too slowly. It is proceeding particularly slowly and remains tough in the construction sector. But there is, therefore, an opportunity to act in the year-end budget, which will contain an additional 11.5 billion SEK investment beyond the 60 billion SEK that are in the budget for this year, which is an expansive budget aimed at stimulating household economies with lowered taxes.

It is still a situation that is tough for very many households. I believe that the members also note this in many conversations and in the general discussion. But ultimately, it is about the fact that we need to get Swedish finances in order and support the recovery. Those are the measures that we have presented today.

Approximately half of the space we have in our supplementary budget is directed towards a stimulus package. One of the journalists at the press conference this morning had calculated themselves that a large proportion of this goes specifically to the construction and civil engineering sector and asked a question about it. It is therefore because the government takes the situation very seriously.

We see that we need to do more to save jobs in the construction sector. It is about every single individual, but also about us being better equipped when the economy eventually turns and having competent labor remaining in the sector.

It worries me, and surely also the members, that it is such a tough situation that it is difficult to get apprentices out into workplaces. It is an important part.

In addition to the initiatives I have already described, we are increasing the budget for road maintenance. The construction sector will be able to hire more people in that area and prepare for the multi-billion investments that will come in the coming years, where we will catch up on all the deferred maintenance. But we are also making targeted labor market and education efforts so that more people can get a job. It is about more places in vocational upper secondary school and in the university college, summer jobs for young people in municipalities with high unemployment, extra funds for Arbetsförmedlingen and – speaking of the situation being so tough for very many right now – an earlier-than-planned general wage increase.

Mr. Speaker! Many of the questions that the members have raised in the chamber today have, therefore, been partially answered by the government today. We are now taking measures aimed at remedying the situation that affects very many people and affects the Swedish economy. The construction and housing sector constitutes a large part of our GDP, and this is important for individual people and for the Swedish economy.

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Leif Nysmed (S)

Mr. Speaker! I thank the Minister again for the answer.

My point is somewhat that one has let the industry suffer in the fight against inflation. I mean that as a government, one can do more things simultaneously. It is the construction industry that has had to take the big hit when it has been left completely to its own fate, so that it must not cost money.

It is 4,600 companies that have gone bankrupt during this parliamentary term. There are 14,000 unemployed in Byggnads akassa. There are significantly more who are unemployed and stand outside the fund and therefore are not included in the statistics.

I saw that according to the deployment register, there were 2,000 who left the country last year. We have to take those figures with a grain of salt, as it could be because the agreements have been cleared up. But many have disappeared from the industry.

The question then is: Who will be left when it gradually turns? We are talking about skilled workers. I have an old colleague who had to leave one of the large construction companies last year. He had worked for 24 years in the company. He had to leave because there are no jobs.

He kicks out very many. Where do they remain?

We are not against increasing the unemployment insurance. It is good that you increase it earlier. But you then phase it down quite quickly, which forces people into other jobs, forces them out of the industry. Because it simply will not have time to get started during this year. It will take far too long.

It is good that you realized that luxury-root was ineffective. You should instead, a year ago, have introduced the proposal with the priorities that we made – it is about energy and climate adaptations. It would have done more good considering that luxury-root showed that no new jobs were created. Unemployment increased significantly during that period.

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Statsrådet Andreas Carlson (KD)

Mr. Speaker! I thank you for the discussion in the chamber today. I thank the members for their commitment.

The government has today presented an increase of the rotavdrag from 30 to 50 percent. It is a temporary increase. The purpose is to get those who have the possibility to carry out renovations, conversions, and other measures to do them now when it is so tough. That is the point, so to speak, of it being temporary.

I do not rule out that it can be extended, but it is of course important that we already see that it can start being used. The announcement is that it applies to invoices to be paid after May 12, but starting from today. One should therefore not wait to take the possible measures that one now sees that one can get a little extra margin in the household economy to achieve.

This also comes at a time when we are making enormous concessions in the building permit regulations. In the investigation that forms the basis for this, it is assessed that the workload on the building committees will be reduced by up to 40 percent. There will be greater flexibility. According to the proposal, this enters into force on October 1, i.e., during the same period as the rot deduction is increased. It is therefore an important announcement that the government has made today.

I have great respect for the fact that the opposition always points out that there should be more and that it should be moved earlier, but I hear support for this proposal in the chamber.

I look forward to continued discussions, and I thank you for today's debate. I believe we will see each other in the Committee on Civil Affairs during next week. Then we can continue the discussion.

The interpellations debate was hereby concluded.

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