In theory this shouldn't be much of a problem because all jobs should be on permanent basis by default and fixed-term contracts should be only for very special purposes. In practice this is not enforced and especially for lower paying jobs (and some even higher educated fields, such as teachers or nurses) its quite common not to get permanent contracts at all.
Because of this, there's almost a new social class of permanent contract workers who have great benefits and programs, and beneath them a constantly growing underclass on temp contracts, shitty working conditions and little benefits. It's sort of absurd that some paper pusher can get paid for doing any studies they wish more than a cleaner or store clerk gets paid while working.
The systems were largely created before the neoliberal era started in Nordic countries in the 90's or so when employer protection was very strong across the board. But as the protection has crumbled for the "underclass", the system starts to at times look something like the olden privileges of the higher castes.
This gave me a chuckle. To most people who aren't on HN a software service, no matter the size, is a major business undertaking.
I have a friend who started a pilates studio. She loves pilates and the startup costs are minimal - a few thousand dollars total mostly for a small inventory of yoga pants and athleisure gear to sell. She quit her finance job to get it off the ground thinking it would take at least a year. It took her six weeks to have enough membership subscriptions to make her business profitable. She's a brilliant businesswoman and was working the front desk at a pilates studio and teaching a few classes. After three months she was understandably very bored. Her company still hadn't found a replacement for her so she hired a college kid to sit at the front desk and went right back to work.
There are a lot of "analog" small businesses people could get off the ground in 6 months I just think they aren't the sort we're used to hearing about here because HN is so tech focused.
You have a good point. My wife started teaching piano lessons after I quit my job, and her studio was at full capacity before my business was making any money. She's been at it for a while, but like your friend she's also experiencing a loss of motivation to continue doing it.
You're right that single person & analog face-to-face services are very easy businesses to start. I have to wonder if those are the kind that Sweden is actually encouraging with their leave program. These kinds of businesses don't scale at all, there's a growth wall that most people never get over, even when they're among the few that survive the motivation problem. This is especially true when the business is initially launched as a personal service and needs very little planning or investment.
And then what do you do with the replacement once the original guy is back?
Overall though, I would agree that benefits overweight potential problems.
Once its an accepted pattern, there are fewer surprises, and most people are understanding.
I wish there was something like this in my country as well.
A possible argument against the system is that there are many temp working contracts to fill in for the fulltimers on leave.
Also, what sort of employer benefits are provided during these periods? I'm assuming Sweden has socialized medicine so employers aren't on the hook, but that'd be a major reason why it couldn't work in the US.