The Swedish jobless rate remained the same in May. However, the report came in slightly weaker than anticipated. The seasonally unadjusted unemployment rate came in at 7.2 percent in May, the same as in April. Consensus expectations were for the rate to come in at 7.1 percent. On a seasonally adjusted basis, the unemployment rate stayed at 6.7 percent in the month, the same as in April. Consensus expectations were for the jobless rate to fall to 6.6 percent.
In the month of May, students enter the labor market as they begin searching for jobs for the summer break, resulting in huge swings in the unemployment readings. Even if the students get a job contract for July, they are still considered as unemployed in May and June.
The May employment report was slightly weaker than expected as employment dropped on the month while a small rise was expected. Employment has dropped for two straight months; however, the dip came following solid readings at the start of the year.
Swedish employment continues to be on a solid upward trend. The overall scenario shows that the demand for labor continues to be high, said Nordea Bank.
The Swedish central bank, Riksbank, projects jobless rate at 6.7 percent on average for the June quarter. Recent readings are spot on the central bank’s projections. The data released for May does not alter anything for the monetary outlook. More important is that inflation has been higher than anticipated that provides the central bank with some near-term leeway, stated Nordea Bank.
