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Is the industrial crisis going to hit Sweden once again?

Sunday, 08 January 2012
The weakening Swedish industrial sector seems to be loosing ground. Middle Sweden and province of Småland is looking to loose some 25,000 manufacturing jobs, expected to disappear this year.

With almost twice as high a proportion of employment in industrial or manufacturing in the country in general, they can become this year's losers.

Between the period 2008 and 2009 which saw the financial crisis struck hard, the factories in the regions of central Sweden, West Sweden, Småland and Blekinge were fully squeezed. The same areas are now threatened again as a new anticipated industrial crisis is imminent.

Jönköping County is the densest region with manufacturing in Sweden. When the anticipated 25,000 manufacturing jobs will disappear next year, according to the Swedish Employment Service forecast, they will come to join Västmanland, Kronoberg and Blekinge which are currently particularly vulnerable. In these regions more than ten percent of those are employed work in the engineering industry - nearly double that of the rest.

According to the employment services, the young guys are those who are going out of the labour market first and they will be the ones to suffer from the jobs losses first.

By comparison only around three percent in the Stockholm and Uppsala region work  on the factory floor, according to figures from Statistics Sweden.

For example, in Stockholm County about four, 24 percent are working, with financial or business services. In Jönköping the corresponding figure is 9 percent. 8 percent of Stockholm residents are busy with details, which double that of the kingdom in general.

The major cutbacks in the media industry and the banks, which were recently announced, could be labelled a part that will affect the Swedish capital more.
Stockholm managed the last crisis without major negative consequences. The question now is whether it will succeed to manage again this time as before.

In the northern counties employment is heavily dependent on the public sector, and will especially affect the women most. More than one third of women employed in Norrbotten, Jämtland and Dalarna are working in health care.

The Swedish Finance minister Anders Borg in his past budget presentation has planned to see unemployment reach below 5 percent in the next two years. Also recently Sweden has been clamouring that there are shortages of engineers and related skills in the country’s industries. Let see how thing turns and how these sectors continue with their planned growth. 
By Scancomark.se Team

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