New figures from the Swedish Public Employment Service (Arbetsförmedlingen) show that while more people are unemployed, a greater number of them found work last month compared to the same period a year ago.

As of the end of June, nearly 348,000 people were registered as unemployed with the agency, an increase of almost 26,000 from a year ago.

This puts the unemployment rate at 6.6 percent, up from 6.1 percent twelve months ago.

Emil Persson, a labour market analyst at Arbetsförmedlingen, expects unemployment to continue rising throughout the year.

“We expect the labour market to be weak throughout 2024, with the turning point occuring as the economy improves in 2025,” he said.

Regional unemployment rates

Unemployment is highest in Skåne at 8.9 percent, followed by Södermanland County at 8.5 percent, and is increasing in most counties across the country.

In contrast, Västerbotten County boasts the lowest unemployment rate at 3.5 percent.

The number of long-term unemployed – defined as those out of work for a year or more – has also increased by nearly 3,000 compared to the same period last year, bringing the current total to just over 140,000.

Positive signs

Despite the overall rise in unemployment, there are some positive signs.

Fewer people were given notice in June 2024 compared to June 2023, with the number dropping from 5,300 to 4,500.

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Additionally, more people started working in June 2024 than in the same month last year, with the figure increasing from 29,500 to 31,000.

“This doesn’t change the image we have now of a weak labour market,” Persson said. “We expect the turning point to come later.”

However, Persson warns that the number of notices could rise again in the autumn due to the weaker labour market and higher-than-normal number of notices during the spring.

He believes 2025 will bring about a turnaround in the labour market.

“It will probably be somewhat easier in the first half of next year. However, the assessment is still characterised by great uncertainty,” he told TT, adding that it will take some time before Sweden is at the same unemployment level as it was before the recession.