Sweden's Unemployment Rate Hits 7.1% in July 2025, Youth Unemployment Remains Stable
July 2025 sees unemployment increase in Sweden to 7.1%, but youth unemployment remains steady at 8.0%.
Key Points
- • Overall unemployment in Sweden increased to 7.1% in July 2025.
- • Youth unemployment remains stable at 8.0%, with around 43,000 young individuals jobless.
- • Long-term unemployment has risen, affecting over 153,000 people.
- • Disparities exist in youth unemployment rates, with young men at 9.5% and young women at 6.5%.
- • Economic recovery is anticipated in autumn, according to the Swedish Employment Agency.
In July 2025, Sweden's unemployment rate rose to 7.1%, translating to approximately 373,000 unemployed individuals, an increase of 16,500 compared to the same month last year. According to Lars Lindvall, chief forecaster at the Swedish Employment Service (Arbetsförmedlingen), this uptick comes amidst an economic slowdown, though he remains cautiously optimistic about a potential recovery this autumn that could reduce unemployment rates heading into 2026.
Despite the overall rise in unemployment, youth unemployment remained stable at 8.0%, with around 43,000 young people aged 18-24 registered as unemployed. Notably, young men face a notably higher unemployment rate of 9.5% compared to 6.5% for young women. Lindvall attributes this gender disparity to the higher educational attainment among women and the poor performance of the construction sector, which typically employs a significant number of young men. Furthermore, the report highlights an alarming increase in long-term unemployment, with more than 153,000 individuals unemployed for a year or longer, showcasing ongoing challenges within the job market.