Lower peak seen for Swedish unemployment after coronavirus

Fewer Swedes will lose their jobs as a result of the coronavirus pandemic than previously feared as the economy makes a relatively quick recovery, Sweden’s Public Employment Service (SPES) said on Monday.

“The outlook has generally improved since summer and the economy has started to get going,” SPES said in a statement.

“SPES’s view is that unemployment will continue to rise until the end of the first quarter next year when it will be 9.6%.”

SPES’s previous forecast was for unemployment to rise to 11.2%.

Sweden’s economy has been less badly hit than many in Europe. The central bank expects gross domestic product to shrink 3.6% this year before bouncing back sharply in 2021.