Swedish Labor Market Shows Surprise Strength Despite Rate Hikes

Sweden’s unemployment rate fell to the lowest level in seven months, defying rate hikes and stubborn inflation that are weighing on consumer demand in the Nordic region’s largest country.

The seasonally adjusted unemployment rate fell to 7.1% in April from 7.2% a month earlier, according to Statistics Sweden. Economists surveyed by Bloomberg had expected an increase, to 7.3%, as the Swedish economy is slowing down amid weaker private spending and lower investments in construction.