Government subsidies bring increase in service jobs

The number of jobs in the service sector is increasing, while the number of people employed in heavy industry is continuing to fall, according to a report from employers' organization Almega.

However, the report said that many of the new service sector jobs were created thanks to state subsidized job creation schemes.

“Regular employment is rising more slowly this year than total employment,” said Owe Danemar, chief economist at Almega, who warned of a large displacement effect.

“The demand structure means that all service industries – retail, domestic services, transport and professional services – can look to the near future with confidence,” Almega wrote in a press release.

The total increase in the number of people in work was 60,000, of which around half were in the private service sector. Almega said that 40 percent of the increase was due to the government’s focus on subsidized jobs.

Some 8.5 percent of people of working age in Sweden are either on unemployment benefits or working in a government creation scheme, according to Almega.