Unemployment rate rises as bankruptcies surge in Sweden

The high unemployment rate and the significant number of business bankruptcies can be attributed to various factors. Johan Pehrson highlights that pandemic support for businesses has ended, which has contributed to the rising number of bankruptcies. In June alone, 5,872 companies filed for bankruptcy, marking a 38 percent increase compared to the previous year. In the first quarter of 2024, 14,675 employees were affected by these bankruptcies.

The overall unemployment rate stands at 8.3 percent for the second quarter, with Pehrson projecting a slight increase to 8.4 percent. “Excluding the pandemic effects, unemployment is on track to reach the highest level in a decade,” he noted.

The situation continues to evolve.