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Finance Minister Anders Borg debated the Supplementary Budget with his Social Democrat shadow minister Magdalena Andersson, Photo: Scanpix.Montage: Sveriges Radio.
supplementary budget

Government: unemployment to rise and linger

The government's Supplementary Budget proposal, presented Monday, estimates that unemployment will remain over 8 percent for several years. This is the third time in a relatively short time that the government has raised its estimate for unemployment figures.

But Finance Minister Anders Borg argued in parliament that Sweden is better off than many other European countries.

Debatting the proposal, opposition Social Democrat Magdalena Andersson cirticised the government for not doing more about unemployment, and said within the EU, it is only the euro zone crisis countries that have higher unemployment than Sweden.

According to the budget, unemployment will be 8.3 percent this year and rise to 8.4 percent in 2014, before sinking to 7.1 percent in 2016. Last fall, the government did not think unemployment would rise above 8 percent.

Writing in the newspaper Dagens Nyheter Monday morning, Finance Minister Anders Borg says that the international crisis, the worst since the depression of the 1930s, has meant that Sweden can't utilize its workforce fully, and that the effect will last for at least nine years, beginning from 2008.

The Supplementary Budget will try to dampen the effects of the crisis and prevent high unemployment from settling in, investing some SEK 3 billion in the coming two years.

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