Sweden's labor market is showing signs of recovery, with the national unemployment rate falling to its lowest level since 2023. According to the latest figures released by the Swedish Public Employment Service, or Arbetsförmedlingen, the number of registered jobseekers reached just under 339,000 by the end of October. This figure represents 6.3 percent of the workforce, a notable improvement compared to the 6.8 percent recorded during the same period last year.
Emil Persson, the acting head of forecasting at the Public Employment Service, attributed the positive trend to a strengthening economy. He noted that companies are actively hiring, leading to fewer new registrations and a higher number of individuals successfully securing employment. This improvement is broad-based, affecting both men and women, as well as both native-born Swedes and foreign-born residents. Specifically, the unemployment rate for foreign-born individuals dropped from 14.5 percent to 13 percent, while the rate among Swedish-born residents saw a slight decrease from 4.2 percent to 4.1 percent.
Despite these overall gains, the labor market remains polarized. Persson highlighted that individuals who have held jobs recently and possess relevant qualifications are finding it easier to re-enter the workforce. In contrast, those who have been out of work for extended periods continue to face significant barriers. Statistics show that unemployment is actually rising among those who have been without work for more than two years.
Persson explained that prolonged unemployment creates its own set of challenges, as work experience and references become dated. Furthermore, he noted that individuals in this long-term group are more likely to lack upper secondary school qualifications. While unemployment decreased across every county in Sweden compared to October of the previous year, regional disparities remain stark. Skåne recorded the highest unemployment rate at 8.2 percent, whereas Norrbotten reported the lowest at 3.4 percent. Persson advised jobseekers to consider these regional differences, suggesting that those in areas with higher unemployment might increase their chances by searching for opportunities in parts of the country where competition is less intense.
Reflecting on the progress, Persson stated, "We are heading in the right direction, but we aren't there yet."
"The economy is stronger, and we can see the labour market following suit with companies hiring. We're seeing fewer people registering with us and more people finding jobs," Persson said.
"Being out of work for a long time becomes an obstacle in itself – your references and work experience aren't as fresh," he said, adding that it is significantly more common for people in this group to lack an upper secondary school qualification.
