In one year the number of people registered as unemployed decreased by 17,000, bringing the total number to 339,000 last month, according to Sweden's national job agency Arbetsförmedlingen.
The unemployment rate stood at 6.9 percent in July, down 0.4 percentage points on last year.
The same rate for foreign-born workers saw an even bigger drop: from 21.8 to 19.9 percent.
However, there is still a significant gap between people born in Sweden and people born abroad, with the unemployment rate for the former currently at 3.6 percent (down from 3.9 last year).
“Unemployment is clearly falling among both native and foreign born, but there are still major differences. To get more new arrivals into work, education and subsidized jobs are important,” Arbetsförmedlingen analyst Andreas Mångs said in a statement.
In total, 198,000 foreign-born job seekers were registered with Arbetsförmedlingen in July compared to 141,000 people born in Sweden.
People trained in healthcare, education, data and IT or construction are particularly sought after in the Swedish labour market, according to the job agency.
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