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Swedish jobless rate rises in August

Published: 13 Sep 2010 15:02 GMT+02:00
Updated: 13 Sep 2010 15:02 GMT+02:00

More than 400,000 Swedes, or 8.1 percent of the workforce, were registered as not having jobs in August, up from 7.7 percent last year, new statistics show.

According to the Swedish Public Employment Service (Arbetsförmedlingen), a total of 407,000 had registered with the agency as unemployed or were participating in agency-sponsored programmes to get people back in the workforce.

While the number of Swedes technically registered as unemployed fell by 20,000 in August compared to the year before, the number of people in employment support programmes rose,

Overall, 241,511 people, or 4.8 percent of the workforce, were registered as jobless with the agency.

In addition, however, 165,726 people took part in work support programmes, an increase from 118,956 last year.

But there are signs that the employment picture is improving, as 53,112 people found jobs in August, an increase of nearly 10,000 from the 43,367 who found employment during August last year.

Demand for labour has increased and more people are finding work. The number of redundancies has fallen in the autumn and is now much lower than a year ago. However, many are still unemployed, the agency said.

"We see several positive signs for the job market," said chief analyst clas Olsson in a statement.

"Employment is increasing, more jobs and more people find work. However, unemployment remains high and there is concern that the number of people in job and development guarantees continues to grow."

The country's employment offices were notified about 42,044 new positions, a sharp jump from 28,836 last year.

And only 1,865 people were given layoff notices in August, compared with 5,370 in August last year.

"It was an unusually low notice number for the month," said Hans Tydén, an analyst at the agency.

The latest figure was the lowest since July 2007. In the 1990s and 2000s, the number has been lower eight other times, according Tydén.

"Those who have jobs are fairly secure," he said.

Many job seekers are receiving help from job coaches. In August, 11,330 people turned to the agency's internal job coaches and 21,451 employed external ones. One month after coaching, 37 percent of job seekers who used coaches in July found some form of work.

The statistics reported recently show that unemployment will continue to fall. It has already begun to do, according to seasonally adjusted figures, according to Tydén.

"We should see unemployment falling in the autumn, but maybe not at such a quick pace," he said.

"Those in the front of the queue are less educated. If they have experience, it increases their chances further. However, it is probably not easy with an incomplete upper secondary education and those with immigrant backgrounds and a poor knowledge of Swedish will find it harder to get a job."

According to seasonally adjusted figures, unemployment has fallen for 25- to 44-year-olds since the winter. However, it continued to increase somewhat for those under 24 and the oldest in the job market, according to Tydén.

TT/Vivian Tse (news@thelocal.se)

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Your comments about this article

17:02 September 13, 2010 by Taxalien
Just another sign that the Swedish model isn't working. Considering the models track record, even by the standards that politicians measure things, the danger is now very real that a great number of young Swedes will become permanently unemployed. That's because the Swedish model is wonderful at creating lots of permanently unemployed if they are not put to work very quickly.

Sadly the new government, regardless of the outcome of the elections, will continue with the employment planning system and create even more problems than laissez-faires would do.
18:45 September 13, 2010 by Brtahan
Its because we youth are registering for job Guarantee !!! and aint finding a job!
22:14 September 13, 2010 by Taxalien
With things like this it is interesting to look at the big numbers.

http://www.scb.se/Pages/PressRelease____299561.aspx

If you scroll down to the diagram and try to find the biggest number, it is the -62000 long term sick who are not classified as being inside the working population that have disappeared.

One does wonder where they went.

The number of pensioners increased by 59000. With an ageing population, only 3000 became pensioners after a long life working? The rest were already sitting on the sofa watching daytime telly?

If we add the sick in both within and outside the working population, then 465000 were sick. That is 6.7% sick. Add to that 467000 that were unemployed and 112000 that were home on parental leave, not to mention others that were 81000.

No wonder that taxation is so high considering nearly all benefits are income based. It costs a fortune to run this type of economy where so few actually work in the private sector that is paying for the state and all the people above just mentioned.
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