Total unemployment, standing at 6.4 percent for the year’s second quarter, was at its lowest level since 1991, said Finance Minister Anders Borg.
“The government’s view is that job growth is going to continue developing strongly over the next few years, while unemployment will continue to drop. Open unemployment is expected to fall below 4 percent next year,” said Borg in a statement released on Friday.
The minister also predicted GDP growth of over 3 percent for both this year and the next, with public finances set to run a healthy surplus.
“With the wheels of the Swedish economy rolling ever faster and production resources becoming ever more strained, it is important to continue with reforms that bring more people into the labour market,” said Borg.
Part of the government’s autumn budget is set to focus on securing jobs for the long-term unemployed.
Borg also concluded that Sweden’s economy was in better shape than many other comparable countries. Solid public finances meant the country was well-equipped to deal with potential fluctuations on the international financial markets.