Sweden pays (salary and benefits) blue collar workers relatively well, an average white collar worker very rarely makes more than double what a blue collar does (especially after taxes). On top of the social security net and taxes it creates a very egalitarian society.

It DOES cause another problem though: unemployment. Since blue collar workers are so expensive there is a lot of incentive to reduce it as much as possible in all areas of society. A few examples:

It is almost comical how many swedes do manual labor themselves instead of hiring help (especially home renovations). A software engineer coworker renovated all of his apartment (except bathrooms) himself, including changing floors. Construction materials and housing styles are optimised to reduce manual labor.

Almost all public parks have grass-cutting roombas, street cleaning is mostly done with machines, etc

IKEA is so popular because furniture is almost disposable, it is never worth repairing it (unless you do it yourself).

So this still creates another underclass of unemployed people which is also pretty bad for society and individuals. A lot of the gang violence you see about Sweden is a direct result of this. The social safety net helps (especially in ensuring that the children from this class has a chance to excel) but it is not enough and there are no clear answers.