• Sweden's news in English

Central bank policies "cost 50,000 jobs"

The Local · 12 May 2005, 10:19

Published: 12 May 2005 10:19 GMT+02:00

Facebook Twitter Google+ reddit

During the course of his presentation of April’s figures he attributed the weak job creation figures to high levels of productivity and the unsuccessful interest rate policy being pursued by the Swedish central bank.

"There is no strict scientific evidence but in our view about 50,000 jobs have been lost because of erroneous interest rate policy in Sweden," said Johansson.

But on a brighter note, Johansson forecast that the open-unemployment rate will fall to 4% during the first half of 2006.

During April, 348,000 people - 7.9 % of the labour force were either unemployed or engaged on some labour market scheme. The most troubling aspect of the April statistics was the increasing level of unemployment among women and young people.

The open-unemployment figure was 5% while the labour market schemes accounted for 2.9% - an increase of 0.6% compared with the same month last year.

Johansson told news agency TT, "The goal of 4% open-unemployment is realistic seeing that we can offer employers support with recruitment as well as financial assistance for employing new people - which in turn will encourage employment."

A month ago the finance minister announced a 1.4 billion kronor package designed to create 20,000 new jobs next year. Much of that will take the form of tax exemptions to employers to encourage them to take on people who are long-term unemployed.

Anders L Johansson stated that increased productivity has allowed the Swedish economy to grow without this being reflected in higher levels of employment.

"However, in the longer term this improvement in productivity will make the Swedish economy more competitive and this will gradually lead to new employment," he said.

But a barometer of small companies taken during April and published by Föreningssparbanken sends a note of caution.

According to the survey of 4551 companies, 44% have taken the decision to cut back on staff costs in the coming year. Tough competition has made it difficult for small companies to raise prices and this has squeezed profitability, leading to cost cuts.

Story continues below…

Some sectors are more badly hit than others. More than two thirds of small businesses operating in the hotel and catering sector plan to shed staff and more than half of electronics firms plan to lay off people. On the other hand, the building industry will be least affected by layoffs.

David Murphy

David Murphy is managing director of Word of Mouth Communications

Sources: Dagens Nyheter, FSB, Dagens Industri

The Local (news@thelocal.se)

Facebook Twitter Google+ reddit

Today's headlines
Creepy clown messes with the wrong dog walker in Sweden
Not the clown in the story. Photo: Pontus Lundahl/TT

A dog helped its owner fight off a creepy clown chasing the pair in southern Sweden.

A million Swedes are digitally excluded: report
How should Sweden bridge the digital divide? Photo: Henrik Montgomery/TT

Tech-savvy Swedes? Perhaps not. A new study suggests that at least a million of its residents feel the pain of the digital divide.

Malmö's 19th Swedish title sets Champions hopes alight
Malmö fans celebrating after the match. Photo: Björn Lindgren/TT

Malmö FF have their eyes set on the Champions League after winning the Swedish league for the 19th time.

What's on in Sweden
Five great autumn events in Sweden this week
Jazz in northern Sweden. Photo: Umeå Jazz Festival

Food, music, movies and more food. What better way of helping yourself forget that the days are getting shorter and colder?

Here's how slow Sweden's high-speed trains are getting
A Swedish SJX2000 high speed train. Photo: Tomas Oneborg/SvD/TT

The high-speed rail journey between the three biggest Swedish cities is about to get longer.

The Local List
12 Swedish words with just awesome literal translations
A filthy-minded lobster, i.e. a snuskhummer. Photo: Gorm Kallestad/NTB scanpix/TT

One of our favourite things about the Swedish language is its wonderful compound words, which range from being utterly bizarre to making perfect sense.

US election
Donald Trump won't get new Ericsson head's vote
Trump pictured at a campaign rally in Florida. Photo: Evan Vucci/AP

The new Swedish-American boss of telecoms giant Ericsson has revealed he will not vote for the Republican nominee in the forthcoming US presidential election.

Swedes named fourth most gender equal in the world
A file photo of men and women pushing prams in Stockholm. Photo: Claudio Bresciani/TT

Sweden has closed 81 percent of its overall gender gap according to the World Economic Forum.

Sweden: Russian warships in the Baltic 'worrying'
Swedish Defence Minister Peter Hultqvist. Photo: Vilhelm Stokstad/TT

Two Russian warships equipped with long-range missiles have entered the Baltic Sea after passing Denmark.

Why businesses are worried about Sweden's drone ban
A drone filming in Stockholm. Photo: Pontus Lundahl/TT

The Local investigates what Sweden's new drone ban could mean for businesses in the country.

Sponsored Article
Stockholm: creating solutions to global challenges
People-watching: October 26th
Sponsored Article
Last chance to vote absentee in the US elections
Sweden cuts 2016 refugee forecast
Is Game of Thrones coming to Sweden?
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
This is Malmö: Football capital of Sweden
Property of the week: Kungsholmen, Stockholm
Sponsored Article
Where is the Swedish music industry heading?
Will Swedes soon be looking for fairtrade porn?
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
People-watching: October 21st-23rd
Sponsored Article
Swedish for programmers: 'It changed my life'
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Sponsored Article
Top 7 tips to help you learn Swedish
Angry elk chases Swede up a lamp post
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
People-watching: October 20th
Sponsored Article
Stockholm: creating solutions to global challenges
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Swede punches clown that scared his grandmother
Sponsored Article
Where is the Swedish music industry heading?
Fans throw flares and enter pitch in Swedish football riot
Sponsored Article
One expat's strategy for making friends in Stockholm
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Nordic fashion in focus at Stockholm University
Swedish school to build gender neutral changing room
People-watching: October 14th-16th
Man in Sweden assaulted by clowns with broken bottle
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available