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Dull outlook for the already strained Swedish labour market as increases in notices of termination begins to be observed
Friday, 11 November 2011
When the Nordic “tiger economy” begins to wane is when closer to 5700 people were given notice in October for sacking, according to the Swedish Employment Service. This is an increase of 4,800 compared to same month last year.
Although the Swedish economic strength did not significantly created lots of jobs anyway, some 372,000 people, 8.2 percent of the workforce have remained unemployed or engaged in action relating to moves to train for probably work that is no where to be found.
This is a decrease from 8.8 percent last year. A clear signal that the labour market slowed as the number of newly registered unemployed is increasing.
"Now we see clearer signs that the strengthening of the labor market is slowing,” writes Clas Olsson, head of research at Employment Service, who fears that unemployment will increase.
Around 50,000 jobs were advertised with the employment offices during October, which was 7,000 more than during the same month last year. But 5000 fewer receive some form of work compared to last October.
Half of the 5700 people, who were given notice in October, were working in manufacturing related occupation.
The largest affected were mainly in the transport, manufacturing and most that were given notice total was in Västra Götaland County, according to Employment Service.
AdvertisementThe employment authority’s own analysis show that unemployment began to rise in July and now stands at 8.3 percent, seasonally adjusted.
“Unemployment is lower than last year, but you see signs of an upturn when it excludes seasonal effects. There is a decreased demand for labour,” said Hans Tydén, an analyst at the Employment Service.
Of those who have been given alerts, usually around 65 percent actually lose their jobs. The number of notices has not been as many as now since December 2009 when 6757 persons were told to be sacked, according Tydén.
“Since then, there has been over five thousand. We may count it as a rather high level even if you can not compare with the high numbers from the year-end 2008/2009, when notices were at 15000-20000,” says Tydén.
At the same time, the notices of job looses is not all about the labour market situation. Workers on temporary contracts are coming to an end and people employed via employment agencies are not visible in the data.
In October, 1900 people in Västra Götaland, 800 on the Stockholm County and in 700 in lost their jobs.
Employment Service expects that unemployment will go up in future, but everything is pitch black.
“Some parts of the private services can get a pretty decent development, for example consulting and business services.
On the whole, the Swedish labour market is a hard nut to crake and even when unemployment is low, people still find it hard to get jobs. But the low unemployment in Swedish is a myth and although the economy did well in recent month, job creation has been pretty shambolic.
By Scancomark.se Team
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