Swedish jobless rate drops in September, employment likely to rise going forward

Swedish jobless rate dropped in the month of September; however, it stayed above the central bank’s view. On a seasonally adjusted basis, jobless rate dropped to 6.5 percent from 6.6 percent. Jobless rate averaged 6.5 percent for the third quarter as a whole. This is above the Riksbank’s expectations of 6.3 percent for the September quarter. Both employment and labor supply came in different compared to the central bank’s forecast for the third quarter.

Even if employment was slightly softer than anticipated in the third quarter, it will rose 0.3 percent on the quarter. Employment improved in September following some softer readings recorded in the summer.

Indicators imply that the demand for labor is high and that employment will continue to rise going forward, stated Nordea Bank in a research report. Overall, the Swedish labor market remains tight and the deviations from the Riksbank’s view is not sufficient for having any effect on the central bank’s monetary policy decision next week, said Nordea Bank.