Sweden’s unemployment rate rises to 7% in January

Sweden's labor market in January rebounded slightly more than expectation, posting a jobless rate of 7%. It was 0.1% lower than Nordea Bank's and consensus' expectations and on par with Riksbank's forecast. Sweden's employment increased 0.4% m/m after declining in December. Also, the country's labor force grew.

The labor market is Sweden is tight. Of the total unemployed, one-third was full time students looking for jobs in 2015. In relation to the population, employment is high. Moreover, authorities and companies are finding it difficult to find right labor. According to indicators, labor demand continues to be high. Consequently, wage increases will rise; however, it is not expected to be enough for inflation to come at around 2%.