Sweden’s seasonally adjusted jobless rate rises in May

In May, Sweden’s seasonally adjusted jobless rate came in at 7.2 percent, more than consensus expectations of 6.9 percent and April’s print of 6.7 percent. The rise in unemployment rate is mostly a statistical noise and is possibly because of students seeking jobs before the summer break, noted Nordea Bank in a research report.

Meanwhile, employment fell 0.2 percent on sequential basis in May. Employment grew by 63,000 in May from April’s gain of 111,000. The drop was expected and came after an increase by 0.7 percent in April. The labor force, on the other hand, came in above projections. It rose by 42,000 in May as compared with April’s rise of 60,000.

Around 41% of the jobless people were full time students seeking jobs in May. The jobless rate has averaged 7 percent in April and May. It is slightly higher than the central bank’s average call of 6.9 percent for the second quarter.

Overall, the indicators continue to be upbeat and imply that the labor market situation will continue to recover in the future. The jobless data released today does not alter anything for the Riksbank and it is likely to be on hold during its next monetary policy meeting in July, said Nordea Bank.