Sweden’s labor supply rises sharply in September

Sweden’s labor supply rose sharply in September. Labor supply surged 0.6 percent, more than forecast. The jobless rate also rose more than expected to 6.8 percent. The labor market report for the month of September is strong, in spite of the unexpected rise in jobless rate, noted Nordea Bank. Employment rose by a full 0.4 percent on the month in September, better than the projected 0.2 percent. The upturn came after August’s rise of 0.7 percent. The employment ratio also rose and reached a new record level.

The employment ratio averaged 67.9 in the third quarter, just above the central bank’s call of 67.8 percent. This is more significant than jobless rate being higher than the central bank’s forecast.

The labor supply is stimulated by immigration, as a lag impact of the large inflow of asylum seekers two years ago. This would keep up the jobless rate going forward. Labor force participation ratio is at present higher for foreign-born persons than for Swedish-born.

The labour supply is boosted by immigration, as a lag effect of the large inflow of asylum seekers two years ago. This will keep up the unemployment rate going forward. Labour force participation ratio is currently higher for foreign-born persons than for Swedish-born, stated Nordea Bank.

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