Swedish Unemployment Rises as Euro Recession Saps Exports
Swedish unemployment unexpectedly rose as a strengthening krona and faltering demand from recession-plagued Europe hurt demand for the largest Nordic economy’s exports.
Seasonally adjusted unemployment rose to 8.4 percent from 8.2 percent the previous month, Stockholm-based Statistics Sweden said today. The rate was predicted to stay unchanged, according to the median estimate of eight economists surveyed by Bloomberg. The non-seasonally adjusted rate rose to 8.8 percent from 8.5 percent.
Sweden’s government last week announced increased spending on infrastructure and education over the next two years to cut unemployment, which it estimates will average 8.3 percent this year, up from 8 percent in 2012. The central bank last week delayed the timing of its next interest rate rise by about a year to late 2014, citing a strengthening krona and inability of companies to raise prices because of weak demand.
Ericsson AB (ERICB), the world’s largest maker of mobile phone networks, and truck maker Volvo AB, are among exporters who have announced they will cut jobs. Sweden sells about half of its output abroad, of which about 70 percent go to Europe where countries are cutting spending to reduce debt.
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