Sweden's Labor Market Strong Despite Global Economic Challenges

Minister for Labour Market Mats Persson (L) sees no risk of mass unemployment when stock markets plummet and trade wars threaten. No, I see no such risk, he says.

» Published: April 07 2025 at 11:37

Sweden's Labor Market Strong Despite Global Economic Challenges
Photo: Lars Schröder/TT

Persson points out that the recent strengthening of the krona indicates that several international actors see Sweden as one of the countries with the best conditions to cope with this situation.

Sweden is a place in the global economy that stands out with low national debt, high employment and competitive companies. This means that Sweden is very strong in these turbulent times, says the Minister for Employment.

He adds, however, that what is happening in the world is naturally bad and means that the economic recovery risks being delayed.

But I do not see any dramatic effects on the labor market here and now, says Persson.

Three times in Sweden

There is no established definition of mass unemployment.

However, high general unemployment prevailed, for example, in Sweden during the 1920s, when around 25 percent lacked employment, and during the 1990s crisis, when it peaked at 11 percent, as SVT previously reported.

In February this year, the unemployment rate in Sweden was 9.0 percent, according to SCB.

Mats Persson says that the government has a preparedness for if the situation becomes worse. But if changes are already required in the spring budget, which is submitted next week, he does not want to answer.

It's a bit too early to say since the discussions about tariffs are ongoing, and what eventual countermeasures different countries take and what the consequences of that will be, we cannot currently oversee.

New measures

Persson and Social Minister Jakob Forssmed (KD) presented new measures on Monday for the approximately 130,000 young people aged 16-29 who neither work nor study.

The Agency for Youth and Civil Society Issues, MUCF, receives 20 million kronor to distribute in government grants to municipalities and regions for collaboration projects with civil society and business.

MUCF also receives the task of coordinating efforts between authorities and municipalities for the targeted group.

Far too many get stuck in a no man's land where nothing grows, says Forssmed.

MUCF will also analyze why so many boys and young men neither work nor study.

Corrected version: In an earlier version, Jakob Forssmed was given the wrong title.

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By TT News Agency - Translated and adapted by Sweden Herald under license from TT News Agency

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