Sweden's unemployment falls sharply in April, signals end of Riksbank easing

Sweden’s seasonally-adjusted unemployment rate in April fell more than expected by 0.5pp to 6.7 percent. The unemployment rate registered at its lowest level since the collapse of Lehman Brothers triggered the biggest financial crisis, in the fall of 2008. The headline non-adjusted rate also fell on the previous month, to a lower-than-expected 7.3 percent.

After a few months of stable unemployment, this month’s figures were stronger than expected. Employment growth is also solid. Employment growth rose 0.9pp to 2.3 percent y/y.

According to Torbjoern Isaksson of Nordea, the improved conditions in the labor market and strong economic growth reinforce the view that Sweden’s central bank, the Riksbank, "is done easing."

That said, both consumer and manufacturing confidence in Sweden fell in May. Consumer confidence (CCI) fell 0.6p to 96.0. The macro index fell by 0.9p to 91.7, while the micro index fell 1.8p to 100.1. Manufacturing confidence dropped 1.9p to 105.3, the fourth monthly decline.