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:

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

Share this article

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.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Trump Seeks Court Approval to Dismiss Fed Member Before Rate Decision

Trump Seeks Court Approval to Dismiss Fed Member Before Rate Decision

Warner Bros Discovery Surges on Wall Street Amid Paramount Bid Rumors

Warner Bros Discovery Surges on Wall Street Amid Paramount Bid Rumors

US Inflation Matches August Expectations

US Inflation Matches August Expectations

ECB Keeps Interest Rates Steady

ECB Keeps Interest Rates Steady

Novo Nordisk to End Remote Work in 2024

Novo Nordisk to End Remote Work in 2024

Switzerland Suggests Moving Gold Refineries to USA to Lower Tariffs

Switzerland Suggests Moving Gold Refineries to USA to Lower Tariffs

Klarna's Stock Market Debut Attracts Swedish Small Investors

Klarna's Stock Market Debut Attracts Swedish Small Investors

Oil Demand Surpasses Expectations for 2026, Says IEA

Oil Demand Surpasses Expectations for 2026, Says IEA

Stockholm Stock Market Rises Slightly as Rusta Drops 13 Percent

Stockholm Stock Market Rises Slightly as Rusta Drops 13 Percent

Swedish Dockworkers' Union and Employers Reach Agreement Ending Dispute

Swedish Dockworkers' Union and Employers Reach Agreement Ending Dispute

Technology Industry Faces Weak Growth, Says Teknikföretagen Report

Technology Industry Faces Weak Growth, Says Teknikföretagen Report

Food Prices Drop for First Time This Year in Sweden

Food Prices Drop for First Time This Year in Sweden

Noba to Join Stockholm Stock Exchange with Existing Shares

Noba to Join Stockholm Stock Exchange with Existing Shares

Rusta Reports Decreased Profit Despite Increased Sales

Rusta Reports Decreased Profit Despite Increased Sales

Sweden's Labor Market Faces Slow Recovery Despite Job Gains

Sweden's Labor Market Faces Slow Recovery Despite Job Gains

Nikkei 225 Hits New Record Amid Wall Street Optimism

Nikkei 225 Hits New Record Amid Wall Street Optimism

Klarna's NYSE Listing Boosts Growth and Talent Attraction

Klarna's NYSE Listing Boosts Growth and Talent Attraction

Oracle Surges 36% on NYSE, Overtakes Klarna's Major Listing

Oracle Surges 36% on NYSE, Overtakes Klarna's Major Listing

Klarna's Stock Surges 30% in Initial New York Trading

Klarna's Stock Surges 30% in Initial New York Trading

Klarna CEO Outlines Strategy to Dominate Global Payment Market

Klarna CEO Outlines Strategy to Dominate Global Payment Market