Sweden's economy shows modest recovery as wages rise, inflation eases and joblessness falls

A new forecast from LO economists indicates that Sweden's economy continues to recover. LO chief economist Torbjörn Hållö noted private‑sector workers saw wages increase by 3.6 % in the first quarter, while salaries for white‑collar staff rose 3 %.

Official statistics show consumer prices rose 0.8 % in May, driven primarily by higher fuel prices. At the same time, the number of unemployed fell to about 339,000, roughly 20,000 fewer than a year earlier and the lowest level since the end of 2023.

These trends suggest a gradual improvement in Sweden's labour market and price stability after several weak years.