This article describes the development of Swedish employ­ ment policy under the leadership of the Social Democratic Party from 1932 to the present. The Swedish case illustrates how national employment policies may form the basis of industrial and regional development policy, such that the diverse goals of full employment, inflation control, and sus­ tained economic growth may be simultaneously achieved. The price Sweden has paid for its full employment policy has primarily been the policy's contribution to uneven regional economic development. The article focuses on the institu­ tional and political context for Swedish policy development, the creation of the Swedish Model, and employment and regional development policy today.