The uptick in unemployment was unusually large and there is nothing that would warrant that kind of jump in January.

However, unemployment was likely underestimated in the fall due to many discouraged workers who now returned and the outcome in January was well in line with other indicators.

However, another worrying sign was that the number of temporary employed fell back in January.

Not much drama in the employment numbers.

High unemployment out from Sweden this morning where the LFS unemployment unexpectedly rose to 9.7 percent.

A single month should always be interpreted with caution, but the overall picture is that individuals who exited the labour market during the autumn have now returned.

Clearly higher than expected inflation out of Sweden this morning. Flash core inflation at 2.7 percent – much higher than consensus and the Riksbank’s view. We will have to wait for the details, but taken at first glance this number puts doubt on further cuts from the Riksbank.

The Swedish housing market is picking up some momentum on the back of rate cuts. Prices are up, as well as transaction volumes. But the share of total supply of homes on the market that are sold are still low, which makes the upturn a bit shaky.

New vacancies typically lead
the labor market by 6 months. The fact that we do not yet see a clear turnaround in demand for labor suggests that forecasts of recovery early next year may be too optimistic.

Despite the fact that the Riksbank has cut interest rates by 125 basis points this year, there are no signs that demand for labor is about to gear up.

The weekly statistics so far in November show that new job vacancies remain subdued.

The Swedish labor market continued to weaken in October.

▫️Employment declined by 0.2% and the employment rate fell further
▫️ The unemployment rate also declined to 8.4% due to a drop in the labor force by 0.5% over the month
▫️ Weaker than forecast and underscores the risks to the expected recovery