Sweden's news in English

Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

New government "good for jobs"

Share this article

11:33 CEST+02:00
The Confederation of Swedish Enterprise said on Thursday higher interest rates and restrictive finance policies are putting a chill on the country’s economy, but said the new right-bloc government would bolster employment.

The Confederation predicts Sweden’s growth to be 4.5 percent for the rest of this year, but said a downturn will happen next year with growth dropping to 2.7 percent.

“This year’s growth is the highest it has been since the 70s and we are still counting on a slow down at the end of the year,” said Göran Johansson, an economist at the Confederation. “But 2007 will also be a year dominated by economic growth.”

The new Alliance government’s policies are expected to add another 80,000 jobs for people already in 2006. Some 60,000 of those spots will be in the private sector, in which the construction industry makes up a large portion of the demand. The increase will slow down in 2007, where only an additional 40,000 people will be added to the work force, the Confederation said.

The group’s report said the cumulative effect of the lowered government subsidies and lowered taxes will lead to the employment of an additional 200,000 to 300,000 people in the future.

Get notified about breaking news on The Local

Share this article

From our sponsors

How to work 9-5 and travel the rest of the time

A full-time job shouldn’t stop you from satisfying your wanderlust. The Local spoke to Travel After 5 blogger Alline Waldhelm to find out her tips and tricks for travellers who only have 25 days of annual leave.

Discussion forum