SPEECH
SVERIGES RIKSBANK
DATE:
07/05/2019
SE-103 37 Stockholm
SPEAKER: (Brunkebergstorg 11)
Governor Stefan Ingves
VENUE:
Swedish Economics Association
Tel +46 8 787 00 00
Fax +46 8 21 05 31
registratorn@riksbank.se
www.riksbank.se
Long-term trends - important elements
in the monetary policy analysis1
I shall begin by thanking you for the invitation. Coming here to the Swedish
Economics Association to discuss various issues concerning the Riksbank's activities is
something I really appreciate and enjoy. Today's speech is actually the fourteenth
I have given, so it is beginning to be rather a habit to come back here every year.
I intend to devote a large part of today's speech to the Swedish labour market and
some of the overall trends and challenges it is facing, that is, what are usually
known as "structural changes". In this context it may be worth reminding
ourselves of the predictions of two famous economists. Almost 90 years ago, John
Maynard Keynes predicted that the rapid automation of work tasks would lead to
"technological unemployment".2 Another famous economist, Wassily Leontief,
foresaw similar problems 20 years later: "Labour will become less and less
important ... More and more workers will be replaced by machines. I do not see that
new industries can employ everybody who wants a job".3
As we know, these predictions have not come true, but nevertheless a similar
debate has arisen recently. For instance, a report that received considerable
attention recently warned that every second job in Sweden would disappear within 20
years.4 At the same time, there is another ongoing debate about demographic
developments, with an increasing ageing population and several people therefore
saying that we need an increase in labour immigration and better integration to
maintain welfare at the current levels.
Changes in trends are difficult to predict, as they are not visible until a certain
amount of time has passed, as illustrated by the predictions of Keynes and
Leontief. I will therefore not make any attempt to predict developments in the labour
market today, but instead look back at what has happened. There are many
indications that there have been several trend changes in the labour market in the
period following the financial crisis 2008-2009. I would like to discuss some of these
and the extent to which they may have contributed to lower prices and wages and
a flatter Phillips curve. Moreover, I shall discuss the increasing migration and
demographical developments with an ageing population and what economic effects
this may have.
Another structural change concerns the declining trend in real interest rates
around the world. This is a change that has been under way for a long time and
has also affected Swedish interest rates. Sweden is a small open economy with
free movement of capital and our interest rates therefore adapt to international
interest rates. This adjustment does not always need to be perfect, which is
another thing I intend to take up. In conclusion, I shall discuss how different types of
uncertainty, including uncertainty over long-term trends, can affect monetary
policy decisions.
Long-term trends and monetary policy
Economic developments are driven by different types of technological
innovations. At present, there is a lot of talk about the rapid digitalisation, automation
and globalisation that can have major significance for how different markets
function and for the economy as a whole. With regard to monetary policy, the
financial markets and the labour market are particularly important in this context. This
is because two long-term levels - the long-term real interest rate and the
longterm sustainable level of resource utilisation - are determined on these two
markets. These two levels are so important that they have been given special "star
status" in the monetary policy literature: The long-term real interest rate is
normally called rr∗ ("r-star") and the long-term sustainable level of resource
yy∗
utilisation is known as the ("y star").5 I will llustrate why these two long-term levels
play such an important role by using a so-called monetary policy rule.
A monetary policy rule describes a suitable level for the policy rate based on a few
factors. No central bank relies on one such rule in the actual policy rate decisions,
but such a rule can function as a good benchmark for the policy rate. Different
monetary policy rules are also used extensively in the academic literature, as they
have been proved to describe the development of the policy rate relatively well,
in particular under normal economic conditions.6
One common monetary policy rule is the so-called Taylor rule.7 There are
different variations on this, but most often one uses a version that can be described
with the following mathematical equation,
= rr∗ + 2 + - 2) + - yy∗),
RRtt αα(ππtt ββ(yytt
RR rr∗ 2
where denotes the policy rate, the long-term real interest rate, is the
central bank's inflation target, ππ the actual inflation rate, yy the actual resource
yy∗
utilisation and the long-term sustainable level for resource utilisation. The
parameter α determines how strongly the policy rate reacts when inflation deviates from
ββ
two per cent and how strongly the policy rate reacts when resource utilisation
deviates from its long-term sustainable level.
According to the Taylor rule, the development of the policy rate depends on three
factors:
1. The sum of the long-term real interest rate and the inflation target of two
per cent.
2. The deviation of inflation from the target of two per cent.
3. Resource utilisation's deviation from the long-term sustainable level for
resource utilisation.
The Taylor rule illustrates, in other words, how both the long-term real interest
rate and resource utilisation's long-term sustainable level have major
significance for the level of the policy rate.
What roles do rr∗ and yy∗ play for monetary policy?
The long-term real interest rate plays an important role for the long-term level of
the policy rate, which can also be illustrated by the Taylor rule. In the long run,
when inflation is on target and resource utilisation is at its long-term sustainable
level, the Taylor rule can be described as follows,
= RR = rr∗ +
2,
RRtt
RR
where refers to the long-term level of the policy rate and 2 is as before the
central bank's inflation target. The long-term policy rate is thus equal to rr∗ plus the
inflation target. If the inflation target is constant, the long-term policy rate, in
practice the average policy rate, is determined by rr∗. For instance, if rr∗ declines it
means that the policy rate's long-term (average) level declines at the same pace.
rr∗
We have seen a trend decline in international over a longer period of time,
which is an important factor behind the low interest rates in Sweden. I will return
to this later.
Resource utilisation's long-term sustainable level also plays an important role for
monetary policy, but in a slightly different way. The long-term level of the policy
rate is namely not affected by yy∗, on the other hand, the variations around the
long-term level of the policy rate are affected. A simple example can explain why
this is the case.
Let us assume that resource utilisation is equal to yy∗ initially and that yy∗ then
rises to a higher level. Resource utilisation is then lower than its long-term level,
that is, resource utilisation can be said to be lower than "normal" and we have
"an economic downturn". This dampens inflationary pressures and the policy rate
is then cut temporarily to increase resource utilisation and inflationary pressures.
A more expansionary monetary policy makes resource utilisation begin to rise and
adapt to the new, higher level at the same time as inflation returns to the target.
The policy rate thus returns to its original level. If conditions change in such a way
that it affects what we regard as the normal level of resource utilisation, yy∗, the
policy rate will be temporarily affected during a transition period.
I will not discuss the long-term level of resource utilisation per se today, but
instead describe some apparent new trends that have taken place on the labour
market after the financial crisis. Although these new trends do not give direct
measures of resource utilisation or its long-term level, they may still have
implications. Some of the new trends, such as the upturn in labour force participation,
may mean that the labour supply increases in the long-term, which can increase
the production potential in the economy and the long-term level of resource
utilisation. While, for instance, a poorer matching efficiency probably means that the
long-term level of resource utilisation falls.
A constantly changing labour market
Changes in the labour market affect all of us. The period following the financial
crisis 2008-2009 has to a large extent been concerned with how the labour
market might be affected by the rapid development in information and
communication technology, especially the so-called digitalisation, which makes it possible to
automate an increasing number of work tasks - both routine tasks and some
more advanced ones. The increasingly rapid globalisation process, which will
probably involve greater labour mobility between countries and regions, has also
attracted attention. At the same time, we are moving towards a population
structure with an ageing population and we have large migration flows around the
world. It is difficult to know exactly how this will affect the labour market and the
way it functions. I do not intend to speculate on this, but instead discuss some
changes that appear to be a trend that has taken place over the past ten years.
Trends on the labour market following the financial
crisis
Over the past ten years there has been an almost trend rise in both labour force
participation - the proportion of the population of working age in the labour force
- and the employment rate - the number of employed as a percentage of the
working age population. This is an essentially positive development, as it reflects
the fact that an increasing number of people have the opportunity to get a job
and that more people have got a job. Figure 1a shows how labour force
participation has increased steadily from around 71 per cent just after the financial crisis to
more than 73 per cent today. This positive development can probably be
explained in several ways. The high population growth, which is to some extent due
to a high level of migration, could be one factor. A large proportion of the
immigrants who have come to Sweden in recent years have been in the age range 25
to 54 years of age, which is a group with a high labour force participation rate.
Another factor could be various economic policy reforms that have increased
incentives to participate in the labour force.
Another less positive development is the deterioration in matching efficiency. This
could be a sign that companies' requirements and the job seekers' abilities do not
match - for instance because of structural change or deficiencies in the
educational system - or because the search and recruitment processes have declined in
quality. It therefore becomes more time-consuming and costly for companies to
recruit staff.
Matching efficiency fell heavily in connection with the financial crisis, see Figure
1b.8 This need not necessarily be a problem. During economic downturns, some
types of competence become outdated at the same time as other and new
competences are in demand. For the individual, this can mean that some form of
further education becomes necessary. The problem is that matching efficiency
appears to have become entrenched at around the same levels as in 2010. This can
lead to many unemployed people losing work-related competence, which can
further limit their opportunities on the labour market.
Figure 1. Labour force participation and matching efficiency, before and after
the financial crisis
(a) Labour force participation (b) Matching efficiency
74 74 0.3 0.3
Average 2000-2007 and 2010-2018
73 73 0.15 0.15
72 72 0 0
71 71 -0.15 -0.15
Average 2000-2007 and 2010-2018
70 70 -0.3 -0.3
00 04 08 12 16 00 04 08 12 16
Note: Annual percentage change and deviation from the mean value respectively, matching efficiency refers to
deviation from a historical mean value. A negative value refers to a lower matching efficiency than the average.
Sources: Statistics Sweden and own calculations
Taxation and compensation systems determine to a large extent how the labour
market functions. This affects the employees' incentives to take part in the labour
force and accept new job offers. One important factor in this context is the
employees' compensation rate - unemployment benefit in relation to wages. This
determines how much of his or her income an individual can retain if he or she
becomes unemployed. The compensation rate has declined steadily since the
beginning of the 2000s, with the exception of the years 2015-2016, see Figure 2a.
The most important factor behind this development is rising wages, but lower
compensation ceilings in the unemployment insurance and income tax credits
have also had an effect.
Another trend on the labour market is that fewer and fewer employees are
members of trade unions. Since the early 2000s the percentage of trade union
members has declined by around 15 per cent. Part of the downturn reflects the fact
that people born abroad more often refrain from joining a trade union and these
people are also overrepresented in the private services sector, where the
percentage of trade union members has fallen the most.9 There has also been a trend
increase in the number of people with fixed-term employment contracts, see Figure
2b. These people often have a weaker foothold in the labour market and probably
also a weaker negotiating position. The reduction in trade union membership and
increase in fixed-term employment contracts may be indications that employees'
negotiating power has declined. If that is the case, it could have implications for
both wage developments and inflation.
Figure 2. Compensation rate and percentage of people with fixed-term
employment contracts, before and after the financial crisis
(A) Compensation rates (b) Fixed-term employment contracts
90 90 18 18
Low income
Average 2001-2007 and 2010-2018
Average income
80 80
Average 2001-2007 and 2010-2018
17 17
70 70
16 16
60 60
15 15
50 50
Average 2000-2007 and 2010-2018
40 40 14 14
01 04 07 10 13 16 00 04 08 12 16
Note. Per cent of wage replaced after preliminary tax for medium and low income earners during three months
of unemployment and number of fixed-term employment contracts as a percentage of the total number of
employees.
Sources: The OECD, Statistics Sweden and own calculations
Changes on the labour market may have contributed to lower
prices and wages
The period following the financial crisis was a challenge, from a monetary policy
perspective. Inflation has on many occasions been lower than expected and even
below the target. On average, inflation measured in terms of the CPIF has been
around 0.3 percentage points lower after the financial crisis than before, see
Figure 3a. But it is not only inflation that has been lower than expected, wages have
also been lower. Wage increases have been around 1.1 percentage points lower
after the financial crisis, see Figure 3b. The low outcomes have surprised not only
the Riksbank, but also many other analysts.
But despite inflation and wage increases being lower than expected, resource
utilisation - measured as a shortage of labour - has not been unusually low. It has on
average been at around the same levels as prior to the financial crisis, see Figure
3c. Monetary policy has in turn been expansionary, with a policy rate that has on
average been just over 2.5 percentage points lower after the financial crisis than
before it, see Figure 3d. In addition, there have been large purchases of
government bonds to make monetary policy even more expansionary.
Figure 3. Inflation, nominal wages, labour shortages and the policy rate in
Sweden, before and after the financial crisis
(a) CPIF (b) Nominal wages
4 4 5 5
3 3
4 4
2 2
3 3
1 1
2 2
0 0
Average 2000-2007 and 2010-2018
Average 2000-2007 and 2010-2018
-1 -1 1 1
00 03 06 09 12 15 18 00 03 06 09 12 15 18
(c) Labour shortages (d) Policy rate
Note. (a) Annual percentage change, (b) annual percentage change, wages according to short-term wage
statistics (c) per cent, (d) per cent.
Sources: The National Institute of Economic Research, the National Mediation Office, Statistics Sweden and the
Riksbank
This development has not been unique to Sweden; we have seen similar
tendencies in several other countries, see Figures 4a-d. In the euro area, the other
Nordic countries and the United States, both inflation and wage increases have been
lower after the financial crisis. At the same time, resource utilisation in terms of
labour shortages has been at roughly the same level as prior to the financial crisis
and policy rates have been very low in an historical perspective, as in Sweden. The
United Kingdom stands out with a somewhat higher inflation and Germany stands
out with higher resource utilisation following the financial crisis.
No consensus has yet emerged among economists and researchers regarding the
causes of the relatively low outcomes regarding prices and wages, either in
Sweden or abroad. During the years immediately following the financial crisis, the low
inflation in Sweden was said to be explained by weak international economic
activity combined with low energy prices that held back cost increases. Other causes
were a stronger krona and companies having squeezed their margins to a greater
extent than previously.10
On a general level, the increasing globalisation and technological developments,
with an increasingly rapid digitalisation, are probably important causes behind the
low increases in prices and wages. Now that more products are being produced in
global value chains and an increasing amount of trade is online, both prices and
wages are under pressure. But there can also be other factors involved.
Figure 4. Inflation, nominal wages, labour shortages and the policy rate in a
number of countries, before and after the financial crisis.
(a) Inflation (b) Nominal wages
3 3 5 5
Average 2000-2007
Average 2000-2007
Average 2010-2018 Average 2010-2018
4 4
2 2
3 3
2 2
1 1
1 1
0 0 0 0
Euro area Germany United Nordic United Euro area Germany United Nordic United
Kingdom countries States Kingdom countries States
(c) Labour shortages (d) Policy rate
20 20 5 5
Average 2000-2007 Average 2000-2007
Average 2010-2018 Average 2010-2018
16 16 4 4
12 12 3 3
8 8 2 2
4 4 1 1
0 0 0 0
Euro area Germany United Nordic United Euro area Germany United Nordic United
Kingdom countries States Kingdom countries States
Note. (a) Annual percentage change. For the euro area HICP is shown and for the remainder CPI (b) Annual
percentage change. Wages refer to compensation per employee. (c) Percentage responding that labour shortages
are a limiting factor for their production. For the United States, data is gathered from the QPC, United States
Census Bureau, and for the remainder data is gathered from the ESI, European Commission (d) Per cent, for the
euro area, Germany and Finland the ECB's policy rate is referred to. Nordic countries include Denmark, Finland
and Norway, except for Figure (c), where Nordic countries include Denmark and Finland.
Sources: National sources, the OECD and the Riksbank
Two economists at the Riksbank have studied how the changes on the labour
market that I described may have affected prices and wages following the financial
crisis.11 They illustrate in an economic model that the developments on the labour
market could have been a contributory factor to the low outcomes in prices and
wages. In more concrete terms, they show that increased labour force
participation, lower compensation levels and weaker negotiating strength among
employees may have dampening effects on prices and wages.
If labour force participation increases, it will become easier for companies to find
new competence. This reduces recruitment costs. Payroll costs also decline as
increased competition for jobs dampens wage demands. All in all, lower costs lead
to a downward pressure on prices. Another mechanism that my also mean that
the rising labour force participation has contributed to lower prices and wages is
discussed by two economists at the Bank of International Settlements.12 They say
that there has been a change in the composition of the labour force over the past
ten years. Labour force participation in the age group 55-64 years has tangibly
increased, which has slowed down prices and wages.
If the compensation levels are lower, employees will have greater incentive to
accept lower wages. This will also lead to companies' costs declining and to price
pressures slowing down. If employees' negotiating strength weakens, their scope
to have their wage demands accepted declines. This means lower wages and a
downward adjustment in prices.
One should not draw any definite conclusions regarding the implications for
monetary policy on the basis of these results. While lower price pressures in
themselves might justify a more expansionary monetary policy, decisions on the policy
rate consist of an overall assessment of various different factors, where
developments on the labour market are one such factor. On the other hand, one can say
on the basis of these results that supply effects and long-term trends may be
important pieces of the puzzle for monetary policy analysis. This is something that
has been emphasised in other studies, too.13
A flatter Phillips curve need not signify less of an impact from
monetary policy.
In addition to the discussion on the causes of the low levels of wage increases and
inflation, there have also been a discussion of the possibility that the flatter
Phillips curve, that is, the weaker covariation between wage increases and
unemployment, may have led to a deterioration in monetary policy's capacity to steer
inflation. We can see in Figures 5a and 5b that in the period prior to the financial crisis
the Phillips curve had a negative slope, so that lower unemployment was linked to
higher wage increases, but that after the financial crisis it has become flatter and
slightly positive.
Figure 5. Phillips curve prior to the financial crisis (blue line) and after (red line).
Wages measured as short-term wages and collectively agreed wages.
(a) Short-term wages (b) Collectively agreed wages
5 5
5 5
2000-2007 2000-2007
2010-2018 2010-2018
4 4 4 4
growth growth
wage 3 3 wage 3 3
Nominal Nominal
2 2 2 2
1 1 1 1
5 6 7 8 9
5 6 7 8 9
Unemployment
Unemployment
Note. Annual percentage change and percentage of labour force, 15-74 years. Seasonally adjusted data.
Sources: National Mediation Office, Statistics Sweden and own calculations
The apparently weaker link between wages and unemployment is not merely a
Swedish phenomenon. Similar weakening has taken place in the euro area, the
United States and the United Kingdom.14 There are several explanations for this
development, even if there is no consensus in the literature regarding the
underlying causes. Here I shall take up a possible reason that does not seem to have
been given much attention in the general debate and may therefore be of
interest.
The first thing to note is that it is not surprising that the covariation, or, as we
economists say, the correlation between economic variables varies over time. If
we were to study two random economic variables over a longer period of time, it
is probable that the covariation between them would vary between different
points in time because the economy is constantly changing. For a central bank,
however, it may nevertheless seem slightly worrying that it is the slope of the
Phillips curve that has changed, as it has such a prominent role in monetary policy
analysis.
A common reasoning by a central bank might be: "We have seen an increase in
unemployment recently. This has led to the labour market becoming less tight and
to companies now being able to find new staff more easily - the competition for
jobs has thus become greater. This dampens wage increases, which in turn pushes
down prices. According to this reasoning, the covariation between wages and
unemployment should be negative.
There is nothing wrong with this reasoning in itself, but it is not complete as the
cause of the increase in unemployment is not stated. The reasoning works well for
pedagogical purposes, but to understand why the covariation has changed, we
also need to know why unemployment has increased.
To explain why economic variables fluctuate over time, economists assume that
the economy has been hit by "shocks" which affect consumption, savings,
investment, prices, wages and so on. Shocks are what economists often refer to as
exogenous changes. This means changes that occur independently of the behaviour
of households and companies. In principle, one can say that such changes cannot
actually exist.15 The exogenous changes that often arise as explanations -
technological developments, demographic changes, various changes on the labour
market, globalisation, just to take a few examples - are all in one way or another the
consequence of decisions made by households and companies.
But although this is the case, it is often convenient in economic theory to make a
distinction between exogenous factors and the factors one wants to explain. It is
quite simply a question of simplifying reality to be able to understand it better. To
understand why the Phillips curve has become flatter, we therefore need to know
which exogenous changes that might affect its slope and a theory on how the
changes affect it.
I shall in two examples illustrate how the slope of the Phillips curve is affected by
two different exogenous changes.16 The two examples aim to illustrate how the
slope can be negative or positive, depending on which exogenous changes are
driving economic developments. My hypothesis is thus that the flatter Phillips
curve may be due to the economy being exposed to different types of exogenous
changes after the financial crisis than before it, which has changed the slope of
the Phillips curve in a flatter direction. It is of course difficult to verify this
hypothesis in practice, just as it is difficult to verify other possible hypotheses, and this
cannot be done today. It would require a more in-depth analysis, where one tries
to identify in more detail which exogenous changes have been important prior to
and after the financial crisis.
In the first example, the exogenous changes are in labour force participation. To
illustrate the economic intuition, let unemployment increase as a result of more
people entering the labour force. It will then become easier and cheaper for
companies to find new staff and the vacancies will be filled faster. But for those
people entering the labour force, it will nevertheless take some time to seek and find
a new job. Unemployment will therefore increase, at least initially. An increase in
labour force participation will also increase competition for jobs. Employees'
wage demands will therefore be more subdued.
When labour force participation increases, the covariation between
unemployment and wages will become negative. But it is important to understand here that
the negative covariation is due to the increase in labour force participation, that
is, the causality goes from labour force participation to unemployment and
wages. It is thus not rising unemployment in itself that causes lower wages. The
covariation between unemployment and wages that is observed in the data is
only a correlation, which does not say anything about which affects what. Figure
6a illustrates how exogenous changes in labour force participation affect wages
and unemployment. The covariation is negative, as expected.
Figure 6. The slope of the Phillips curve given exogenous changes in labour force
participation and productivity
(a) Labour force participation (b) Productivity
0.2 0.2 0.4 0.4
0.1 0.1 0.2 0.2
growth
growth
0 0 0 0
wage
wage
-0.1 -0.1 -0.2 -0.2
Nominal
Nominal
-0.2 -0.2 -0.4 -0.4
4 5 6 7 8 9 3 5 7 9
Unemployment Unemployment
Note. Quarterly percentage change and share of labour force.
Sources: Own calculations
In the second example, it is exogenous changes in productivity that affect the
fluctuations in the economy. The effects on wages and unemployment can be
illustrated as follows. An increase in productivity leads to companies' production costs
being lower. Prices can then be cut and production can rise, which reduces
unemployment. The increase in productivity does lead to real wages rising, but because
the price fall is greater than the increase in real wages, this means that the
nominal wages fall. In this example, therefore, both nominal wages and unemployment
decline and the covariation is therefore positive. This should not be interpreted to
mean that lower unemployment leads to lower nominal wages - the causality
goes from improved productivity leading to lower nominal wages and also lower
unemployment. Figure 6b shows the example. The Phillips curve has a positive
slope, as you can see.
Central banks consider it important to understand why the Phillips curve has
become flatter as this has implications for monetary policy and its impact. If the
flatter Phillips curve is due to exogenous changes in, for instance, productivity, this
need not reflect a change in the behaviour of households and companies. The
possibilities to steer inflation thus need not have deteriorated. Monetary policy
affects demand and resource utilisation through many different channels.
Unemployment is one channel, but labour force participation, employment, and job
vacancies are some examples of other channels through which monetary policy can
have an impact.
However, if it were the case that the flatter Phillips curve is based on a change in
the behaviour of households or companies, for instance, that companies set
prices in a different way than before, this could mean that the impact of monetary
policy also changes.17 It is thus not sufficient to observe that the slope of the
Phillips curve has changed to draw any conclusions for monetary policy, one must
also have an idea of why the slope has changed.
A lot of things work well in the labour market - but not
everything
Economic prospects in Sweden are currently bright. Growth is good, at the same
time as employment and labour market participation are rising. The labour
market appears to be functioning fairly well, with declining unemployment. Compared
with the rest of Europe, things are looking good in several respects. The
employment rate and labour force participation are both high in a European perspective,
see Figure 7a, which shows the employment rate in Sweden compared with the
euro area. A large part of the difference is due to the labour supply among
women and older people being relatively high in Sweden.
In other words, a lot of things work well in the Swedish labour market from a
European perspective, but there are some challenges. Although unemployment is
lower than the average for the EU countries, it is not among the lowest, see Figure
7b. Moreover, we have a marked division in the labour market between those
born abroad and those born in Sweden. For those born abroad, unemployment is
16 per cent, but for those born in Sweden it is only 4 per cent, see Figure 8a.
Unemployment among those born abroad is also high in relation to other European
countries, see Figure 8b. An important challenge for the labour market going
forward is thus the integration of those born abroad.
Figure 7. Employment rate and unemployment in Sweden and Europe
(a) Employment rate (b) Unemployment
15 15
70 70
12 12
65 65
9 9
60 60
6 6
55 55
3 3
Euro area Nordic countries United Kingdom
Germany Euro area
Sweden
Sweden
50 50 0 0
05 07 09 11 13 15 17
05 07 09 11 13 15 17
Note. Per cent of population and labour force respectively, aged 15-74 years.
Source: Eurostat
Figure 8. Unemployment in Sweden among those born in Sweden and those
born abroad and unemployment among those born abroad in Sweden and
Europe
(a) Unemployment in Sweden among (b) Unemployment among those born
Sweden born and those born abroad abroad in Sweden and in Europe
20 20
20 20
Swedish born
Foreign born
16 16
16 16
12 12 12 12
8 8 8 8
4 4
4 4
Nordic countries United Kingdom
Germany Euro area
Sweden
0 0
0 0
05 07 09 11 13 15 17
05 07 09 11 13 15 17
Note. Percentage of those born in Sweden and those born abroad in the labour force, aged 15-74 years.
Sources: Eurostat and Statist