Unemployment remains steady at 8.4 percent in August compared to previous months, according to seasonally adjusted and trend values. However, compared to the same period last year, unemployment is still higher, according to Statistics Sweden (SCB).
The labor market is still sluggish, and the low-conjuncture economy is making companies cautious about hiring. This has primarily been noticeable through a clear decrease in temporary employees, who are the first to go when demand falls.
However, there are bright spots:
"For example, the seasonally adjusted and smoothed employment rate is increasing, similar to the previous month," says Philip Krantz, statistician at the Labor Force Surveys at SCB, in a press release.
Several bank economists who follow the labor market see the same trend.
"It has not worsened," notes Nordea's chief analyst Susanne Spector in a written comment. According to her, SCB's statistics indicate that the situation for temporary employees has stabilized.
Towards the end of the year, the labor market situation may improve, according to the signals being sent now.
Handelsbanken's economists see roughly the same pattern.
"The labor market is still weak, but a recovery can be glimpsed," writes the bank's senior economist Anders Bergvall.
And the fact that unemployment has risen is largely due to more people seeking to enter the labor market, which in itself is a good sign, according to the bank.
