Swedish unemployment hits record high, central bank may extend easing

Published 17/02/2025, 10:54
Swedish unemployment hits record high, central bank may extend easing

Investing.com -- Sweden's unemployment rate saw an unexpected rise last month, reaching its highest level since records started being kept in 2001, according to data from Statistics Sweden.

The seasonally adjusted jobless rate climbed by more than a percentage point from December, hitting 9.7%. This figure narrowly surpassed the peak unemployment rate seen during the pandemic.

The rise in unemployment came as a surprise to economists and the Riksbank, Sweden's central bank, who had forecast a slight decrease to 8.5%. This unexpected turn of events could potentially lead to the central bank extending its easing campaign.

The jobless rate increase complicates matters for the Swedish rate-setters. Last month, they had shown a preference for a wait-and-see approach after making 175 basis points of cuts, bringing the rate down to 2.25%.

This unexpected unemployment data contrasts sharply with recent inflation data from January. During that month, core consumer price growth accelerated more than expected.

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