Mr Larsson was the first Swedish Director-General of the European Commission, in charge of managing the Directorate-General for Employment, Social Affairs and Inclusion from the time of Sweden's accession to the European Union in 1995 to 2000, where he contributed, inter alia, to launching the European Employment Strategy. Mr Larsson joined the European Commission after a career in national politics, having served as Finance Minister of Sweden (1990 and 1991) and as a Member of the Swedish Parliament (1991-1995). He was previously Director General of the Swedish Labour Market Administration.  

Following his retirement from the Commission in 2000, Mr Larsson has held several international assignments, including at the OECD Round Table on Sustainable Development, the International Labour Organization (ILO) and the United Nations Secretary General's High Level Panel on Youth Employment.

On 19 January, the President of the European Commission, Jean-Claude Juncker, appointed Allan Larsson as Special Adviser for the European Pillar of Social Rights.