Sweden’s seasonally adjusted jobless rate falls in April, labor demand to remain high in near term

Sweden’s seasonally adjusted jobless rate in April declined to 6.7% from March’s 7.2%. It came in stronger than consensus expectations of 7.1%. Sweden’s employment grew 0.7% m/m and 2.3% y/y in April. Meanwhile, labor force also rose; however at a slower rate and consistent with Nordea’s Bank’s forecast. On a year-on-year basis, labor force grew by 60,000 people in April, as compared with March’s rise of 57,000.

The Sweden’s Labour Force Survey’s data is quite jumpy, while the weakness seen in the first quarter and the slight increase in April is statistical noise, noted Nordea Bank in a research report. The solid expansion of the Swedish economy is feeding through to the labor market, and the trends in the labor market are sound.

According to indicators, labor demand in the near term is expected to remain high. The recovering labor market and solid economic growth underpins the view that the Swedish central bank is done with monetary easing; however, the Riksbank’s main focus continues to be inflation and the ECB, said Nordea Bank.