Next recession will hit foreign-born

In a report based on new data from Statistics Sweden, which is presented today, the Liberals have looked at how the next recession will affect the most vulnerable on the Swedish labour market.

Writing in Dagens Industri (DI), economic spokesperson for the Liberals, Mats Persson, states that those who are currently unemployed come from two main groups: people born outside of Sweden and those who do not have an upper-secondary school education. The situation is particularly serious for foreign-born women; almost 30 per cent of women born outside of Europe of working age have no job.

The new report shows that in the past three recessions in Sweden since 1990, the employment rate among both groups has fallen by nine percentage points, which is around 250,000 people. Mats Persson writes, “A labour market that does not work for these groups during an economic boom is a labour market that knocks out many during a recession.” Political courage is needed to push through reforms for a labour market on which everyone is necessary.

Education plug slowing job progress

The shortage of appropriately trained labour has become so large that it is threatening growth and thus the creation of jobs, therefore jobs growth will slow in 2017 and 2018. Both the public and private sectors have personnel shortages. This warning comes from the Swedish Public Employment Service’s (Arbetsförmedlingen) spring forecast, published on Wednesday.

However optimism among employers, in particular in private service companies, remains high. New jobs are being created across the country, mainly in the major urban areas.

Nevertheless the divisions in the labour market continue. In 2017 three quarters of jobseekers are expected to belong to groups long from the labour market. Around 40% of unemployed today are born outside of Europe and that proportion is expected to grow.