Swedish employment flat in January, likely to rebound in coming month

Sweden recorded flat employment in January. The nation’s jobless rate came in at 6.5 percent in January, which was consistent with expectations. The outcome was also in line with the central bank’s view for the first quarter.

Overall, the labor report was subdued, with employment growth flat at 0 percent on the month. Labor supply rose 0.1 percent over the month. Employment growth has lost momentum in the past six month, in spite of high employment plans in the business sector. But employment growth is expected to rebound in the coming month, noted Nordea Bank.

The cyclical decrease in unemployment has possibly leveled out, and unemployment is likely to stay at these levels going forward because of the large inflow of newly arrived immigrants into the labor force.

Labor shortages also dropped in December, indicating that wage pressures are expected to remain weak in 2018, which continues to be a challenge for the Riksbank.

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