Sweden has the fourth highest unemployment rate in the EU. During the second quarter, it was 8.3 percent and the government expects it to rise to 8.4 percent before it decreases, to then remain at a continuously high level throughout 2025.
On Wednesday, the National Institute of Economic Research announced that it predicts six interest rate cuts from the Swedish Central Bank until the summer of 2025. This would mean a repo rate of 2.25 percent.
This would be beneficial for the labor market, according to Pehrson.
It's only the Swedish Central Bank that can make decisions, but it's clear that interest rate cuts would facilitate things for the Swedish construction industry, service sector, and not least for households.
At the same time, unemployment among foreign-born individuals is almost three times as high as among those born in Sweden.
Among foreign-born individuals, unemployment also increased more rapidly, from 16.2 to 16.9 percent during the second quarter.
What should the government do to address this?
We can continue to make efforts where we clearly state that we stand up as a country, but also set requirements that one needs to learn Swedish. Then, as an unemployed person, one should also be willing to search more broadly, both in terms of job tasks and geographically, and be willing to move, says John Pehrson.
