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Economy

Jobless in Sweden to Hit 12%

Published tisdag 9 juni 2009 kl 12.02

A new forecast from the Swedish state-financed employment services confirms earlier fears of nearly 12% unemployment in this Nordic nation next year.

This means 539,000 people out of work.

 Hardest hit will be youngsters trying to enter the labor market as well as the old-timers between 55 and 64, those with foreign backgrounds and those with disabilities.

  

Another report says the gloomy job market and increasing redundancies have resulted in a 13% increase in the amount of social welfare paid out in the first quarter this year.

This is the highest level in 5 years – and is expected to climb much more  with increasing unemployment.

One bright spot on the dark scene:  The Vovlo truck company on the Swedish west coast has cancelled plans to fire 335 workers.  Instead, the company and the unions have reached an agreement to cut the work week by 10% and wages by 4%.

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