Sweden’s unemployment rate defied expectations by falling sharply in March, with economists warning of possible lags in the data as the Nordic region’s biggest economy braces itself for a contraction of at least 4% this year due to the Covid-19 pandemic
According to Statistics Sweden, the seasonally-adjusted rate fell to 6.7%, down from a revised 7.5% in February. Economists were expecting a rate of 7.8%, according to the median of seven estimates from a Bloomberg survey. The unadjusted rate plunged to 7.1%. The agency however stressed that there are “clear signs of the effects of the crisis in several estimations in the LFS for March,” pointing to a sharp decrease in the number of hours worked.