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Swedish unemployment continues to rise – government to invest in vocational education

Welfare collapse

Published 25 October 2024
– By Editorial Staff
Mats Persson of the Liberal Party, Minister for Employment and Integration at a press meeting.

Sweden’s unemployment rate rose to 8.5 per cent in the third quarter of 2024, according to Statistics Sweden. The government is now presenting new measures to reverse the trend, focusing on more vocational training and increased incentives to work.

Unemployment continues to be a challenge for the Swedish economy, with the latest (seasonally adjusted) figures from Statistics Sweden (Statistiska centralbyrån – SCB) showing unemployment rising to 8.5 per cent in the third quarter of 2024, up from 8.3 per cent in the previous quarter and 7.8 per cent in the same period last year.

The figures also show large regional differences, with unemployment at 3.8 per cent in Västerbotten but as high as 9.1 per cent in Skåne, according to a government press release.

In the budget bill for 2025, the government has presented several initiatives to try to counteract the negative trend. One of the key proposals is to create 11,000 new places in vocational training programmes for adults.

Sweden’s government hopes to create 11,000 vocational training positions as technological advances increasingly take over so-called menial jobs. Photo: Facsimile/SVT

May be forced to uproot

The government also emphasizes the importance of strengthening support for people who are far from the labor market and improving opportunities to return to work after sick leave.

– The Swedish labor market has long suffered from mismatches, with employers looking for skills while many are unemployed. We believe that vocational training is an important part of solving this problem, says Mats Persson (L), Minister for Labor and Integration.

In addition to investing in training, the government is also proposing tax breaks to make it easier for companies to hire, while making it cheaper for individuals to take a job.

There are significant geographical differences in unemployment, and northern Sweden has more job vacancies in relation to the labor force. This has highlighted the need for more citizens to be willing to move to areas where the labor market is larger, in principle regardless of the unemployed person’s views on the matter.

Despite the government’s efforts to date, the problem of high unemployment remains and it is currently unclear how well the proposed measures will affect employment in both the short and longer term.

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ICA CEO on price hikes: “We’re doing everything to help”

Welfare collapse

Published 7 March 2025
– By Editorial Staff
Eric Lundberg, CEO of ICA Sweden, claims that the food giant is doing everything it can to bring down prices.

Sweden’s soaring food prices have led to calls for a boycott of the country’s major grocery chains, with many Swedes arguing that the food giants are enriching themselves at the expense of the population.

ICA Sweden’s CEO, Eric Lundberg, however, rejects the harsh criticism and claims that they “do everything we can to help customers”  despite making multi-billion profits last year.

The Nordic Times recently highlighted how a major boycott of the country’s major grocery stores is planned during week 12 in protest against rising food prices an initiative that has been widely spread on social media.

– Food prices are becoming very extreme. They are affecting everyone right now, both me, who earns well, and those who are struggling financially, says Robin Lindgren, from Eskilstuna.

On social media, single parents, people on sick leave and pensioners are testifying to how their finances have already been stretched to the limit following sharp increases in housing costs and a general rise in prices and that it has now gone so far that they feel forced to prioritize food.

“Time to speak out”

Already a year ago, alarms were raised about the fact that many single parents cannot afford to eat enough or are forced to give up nutritious food. More and more people are also seeking help from the church or non-profit organizations, and it is common for parents to give up food themselves so that their children can get the food they need.

The owners of the food giants have long been accused of raising prices far above what is justified by the general price trend, and of exploiting inflation and an uncertain global economy to profit from Swedish consumers.

Food prices in Sweden have skyrocketed, and the hardest hit are those who are already struggling to make ends meet – the poor, students and pensioners. At the same time, the big food chains continue to report high profits. It’s time to speak out!” says Filippa Lind, initiator of the boycott campaign.

“Doing everything in our power”

ICA is by far the largest and most influential food retailer in Sweden, and CEO Eric Lundberg claims that he “understands the customers’ frustration” and that they are not raising prices without any reason.

– We are doing everything in our power. We are negotiating with our suppliers. Last year we invested more than a billion euros in lowering, moderating, food prices. We reduced the price of fruit and vegetables by over 12%, he claims.

– We are really doing everything we can to help customers in this difficult and challenging time, Lundberg continues.

“Invested to help customers”

At the same time, ICA Sweden made a gross profit of SEK 26 billion (€2.4 billion) last year but the CEO does not think this is anything strange.

We have invested to help our customers, he says, adding that the food industry is “a very investment-intensive industry”.

– If we compare the rate of price increases and prices compared to the rest of the EU, for example, we have had a lower rate of price increases in Sweden. If you also look at the total grocery trade, only two out of six players are actually profitable, it is claimed.

ICA’s share of the Swedish grocery trade is about 50 percent. Together with Axfood and Coop, it accounts for about 90 percent of food sales.

Mental health crisis deepens in Swedish schools

Welfare collapse

Published 7 March 2025
– By Editorial Staff

Mental health problems among young Swedes have skyrocketed in recent decades, with the worst performers being those who fail to meet school targets.

A comprehensive study shows that there are clear links between psychiatric diagnoses such as anxiety and depression and poor school performance.

Researchers at Umeå University have followed over three million students between 1990 and 2018 and conclude that the results show that “school performance and mental illness have become increasingly interlinked”.

Psychiatric diagnoses have increased across the youth population, but the trend has been most dramatic among low-achieving students. Mortality from suicide and substance abuse has also increased in this group, while it has remained stable for other youth”, the university writes.

– The increase applies both in the short and long term. We study students when they are in grade 9, but also follow them for several years after they leave primary school. The increase in ill-health is evident even into their 20s, explains Associate Professor Björn Högberg, who participated in the study.

It is seen that mental illness among young people has increased since the 1990s and that Swedish schools have undergone several reforms and changes during this period. These changes have led to an increasing number of students failing to enter or complete their upper secondary education.

Increased risk of suicide

By following all students who completed grade 9 in Sweden between 1990 and 2018, we can see how the correlation between school failure and psychiatric diagnoses has become stronger over time.

– As far as we know, no similar studies have been conducted in any other country, so we do not know if this trend is unique to Sweden. What is known, however, is that self-reported mental illness and overdose mortality among young people have generally increased more in Sweden than in most other European countries, Högberg explains.

The trend is described as worrying and it is believed that those who perform poorly at school run a “significantly higher risk of suffering from serious psychiatric conditions” than others in the future and that there is also an increased risk of suicide and addiction.

– Another way of putting it is that mental health inequalities have increased, and that this has been driven mainly by girls and young people with a Swedish background. However, the trends for students with a foreign background are difficult to interpret as the most common countries of origin of the students vary over the period, continues the associate professor.

“Extensive need for support”

The researchers argue that it is necessary to carefully analyze the actual impact of the various school reforms on the mental health of young people and work actively to reduce the number of school failures.

They emphasize that so far we can only say with certainty that there is a link between excess risk of mental health problems and poor school performance we cannot say how the different factors interact.

– At the moment, we can’t comment on the causal link, but we plan to look at it more closely in the future. Regardless, this is a very vulnerable group with extensive support needs, needs that unfortunately do not seem to be adequately met today, concludes Björn Högberg.

Faults increase on the Swedish railway network

Welfare collapse

Published 3 March 2025
– By Editorial Staff
The Swedish rail network is reportedly experiencing an alarming increase in reported problems.

The Swedish rail network is experiencing an alarming increase in the number of faults, which is creating major problems for both passengers and freight transport. The Swedish Transport Administration says it is working hard to fix the problems, but despite this, the railways are wearing out faster than they are being fixed.

According to information provided to the Swedish public broadcaster SVT, the number of reported faults on the Swedish rail network has increased to 73,649 in 2024 – the highest level since 2018. These range from torn down contact lines to cracked rails and broken switches.

– We are in a phase where the system is breaking down at an ever faster pace, says Jon Sundh, Head of Department, Railway System Maintenance at the Swedish Transport Administration, to the industry magazine Järnvägsnyheter.

Photo: Pixabay

Maintenance Debt Grows

Restoring the railway is currently estimated to cost SEK 91 billion (€8 billion). However, while the number of faults is increasing, the Swedish Transport Administration states that railway maintenance is being intensified.

– Railway maintenance is in high gear, where we are upgrading and replacing everything from tracks to signals on an increasingly large scale and at a faster pace. We are carrying out more measures than ever before, at the same time as more trains are running than ever before, says Jon Sundh.

According to the Swedish Transport Administration, a number of measures are being planned together with train operators and industry players to address the problems.

One ongoing example is the replacement of the entire electrical power plant on the Western main line between Gothenburg and Alingsås, which began in January this year. The work has reportedly progressed so far without major traffic problems.

– We are sharpening both our planning and our production methods to get as much work as possible on the tracks with as little impact on traffic as possible. It is also about developing business forms and industry partnerships. We see that we are gradually increasing our capacity and are on the way to more efficient maintenance, says Jon Sundh.

Swedish unemployment soars

Welfare collapse

Published 18 February 2025
– By Editorial Staff
Almost 600,000 people are now classified as unemployed according to Statistics Sweden.

In January, the number of unemployed in Sweden increased by 114,000 to almost 600,000 compared to the same month in 2024. This means that unemployment now stands at 10.4% and it is expected to take some time before the negative trend is reversed.

In January, 5.1 million people aged 15 to 74 were employed in Sweden while 592,000 were unemployed. This means that unemployment has risen from 8.5% to 10.4% in just one year.

 Unemployment increased in January. At the same time, we see a decrease in the number of women outside the labor force, says Charlotta Olofsson, statistician at Statistics Sweden’s Labor Force Surveys.

The number of long-term unemployed amounted to 173,000 and the employment rate was 67.1%, compared with 67.6% a year ago. At the end of the year, around 377,000 people were registered with the Swedish Public Employment Service which is around 27,000 more than in the same period in 2024.

Expected improvement in the fall

Eva Samakovlis, Director of Analysis at the Swedish Public Employment Service, told SVT that one reason why unemployment continues to rise is that “household consumption has been weaker than we expected”.

At the same time, the negative trend is expected to be reversed albeit slowly.

 Our assessment is that unemployment will stop rising in the spring of 2025 and then begin to fall gradually in the fall of 2025.

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