Swedish Unemployment continues fall like nothing seen before


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Wednesday, 08 June 2011
Signs that the Swedish economic miracle is beginning to be felt right down to the common man seem to be noticeable even by top critics. Some unlikely types of people are getting jobs in Sweden now signalling the point that Sweden may the place for a job seeker now.  

According to the Swedish employment service, Arbetsf�rmedlingen, employment is expected to show a record increase this year, but growth rate will gradually decline over the year. The decline in unemployment is to be driven by the demand for labour which will continue to increase.

Writing in its labour market forecast presented on Wednesday the national Employment Service forecasts that the Swedish unemployment will be 7.5 percent this year and 6.7 percent in 2012. In December, the forecast projected an unemployment rate of 7.8 percent in 2011 and 7.5 percent in 2012.

The statistics are based on Statistics Sweden's definition of open unemployment, but has a narrower age group of 16-64 years in contrast to Sweden’s typical 15-74.

Employment is expected to increase by 107 000 people this year and 61 000 people in 2012.
In December, the forecast projected employment increase of 65,000 people this year and 35,000 people next year.


Labour supply is projected to increase by 64 000 people this year and 27,000 people in 2012.
At a press briefing the Employment Service's forecast manager Tord Strannefors said that jobs are growing rapidly and he honoured the Employment Service's forecast of a growth in employment of 107 000 people this year, it would mean the largest increase in employment ever.

"Unemployment has dropped, but not as much as expected. It is due to an increase in the labour force. In the future labour force growth will slow and unemployment will continue downward, "he said.

He said one problem is the shortage of workers in some key areas and it is steadily increasing while some groups of people have difficulty in finding work or employers don’t want to employ them for obvious reasons.
"Currently, I think, however, that failure rates are low relative to the current economic situation, but they are steadily rising,” he said, relating to business failures.

Data show that approximately, some 225 000 people belong to a groups of people that have difficulties entering the labour market because Swedish employers discriminate against them. These include factors such as they are young with a lack of required education, they are foreign born (Africans and Arab-looking), particularly women, unemployed over 55 and people with pre-upper secondary education.

Employment Service bases its forecast on GDP growth of 4.8 percent in 2011 and 2.9 percent in 2012.
The European commission on Swedish said of Swedish economy yesterday that the government must do all it can to absorb the youth as well as the non – EU citizens into the job market and works hard to reduce discrimination in the Swedish society.
By Team

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