Unemployment will increase from 6.1 percent in 2008 to 11 percent in 2010, according to the agency forecast.
The increase will be spread across all social and labour market groups but young people will be the worst hit.
The number of those in work in Sweden is expected to decrease by around 250,000.
The dire forecast comes as no surprise to agency director-general Angeles Bermudez Svankvist.
"No, not really as the financial crisis continues and the financial system remains at a standstill," she said to news agency TT.
"At the same time we have to remember that the crisis is not a Swedish creation. But we at the agency have to gather our resources and meet the crisis."
The forecast will not come as a surprise to Sweden's finance minister Anders Borg who, The Local reported on April 1st, expects unemployment to hit 12 percent by 2011.