Swedish jobless rate falls in month, employment likely to pick up again in months ahead

Swedish jobless rate dropped in the month of November; however, for the wrong reasons. Seasonally adjusted jobless rate fell to 6.4 percent, lower than the consensus rate of 6.6 percent and prior month’s 6.8 percent. This was also below Riksbank’s view. Seasonally unadjusted jobless rate dropped to 5.8 percent from previous month’s 6.3 percent.

But the report was slightly weaker than expected. This is because employment came in flat in November, while it was anticipated to have risen 0.3 percent. Low jobless rate reading is because of the declining labor supply.

Employment has dropped or remained unchanged for two straight months. This is probably mainly statistical noise, although matching problems hampering employment growth cannot be ruled out. Employment plans of companies continue to be positive and employment is expected to pick up again in the months ahead, noted Nordea Bank in a research report.

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