Sweden’s jobless rate rises in March, employment drops 0.1 pct m/m

The seasonally adjusted jobless rate in Sweden rose to 7.2% in March, as compared with consensus expectation of 7% and February’s 7.1%. Meanwhile, employment dropped 0.1% m/m, as compared with Nordea Bank’s forecast of a 0.2% rise In March, the number of employed people rose by 66k y/y, as compared with February’s 76k. Moreover, the labor force also came on the weak side, rising by 57k people in March.

Even if employment weakened in Mach, it grew modestly by 0.3% on quarter-on-quarter basis in the first quarter. Therefore the upward trend continues to be intact, noted Nordea Bank. Furthermore, according to indicators, labor demand continues to be high. The matching issues are more of a concern, added Nordea Bank.

In the first quarter, joblessness averaged 7.1%, slightly more than Riksbank’s forecast. The central bank will not be concerned about above expected unemployment reading as the economy is performing strongly.