{"id":133838,"date":"2019-10-08T11:50:19","date_gmt":"2019-10-08T11:50:19","guid":{"rendered":"https:\/\/www.bnreport.com\/swedish-slowdown-imperils-pms-job-promise\/"},"modified":"2019-10-08T11:50:19","modified_gmt":"2019-10-08T11:50:19","slug":"swedish-slowdown-imperils-pms-job-promise","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/swedish-slowdown-imperils-pms-job-promise\/","title":{"rendered":"Swedish slowdown imperils PMs job promise"},"content":{"rendered":"

G\u00c4VLE, Sweden \u2014 Swedens beleaguered leader Stefan L\u00f6fven, who took four months to form a government and seven to get a budget passed by parliament, now has a new headache: a faltering economy.<\/p>\n

Growth has stalled and unemployment has spiked and L\u00f6fvens much-vaunted 2013 promise to deliver the lowest unemployment rate in the EU by 2020 now looks a distant prospect.<\/p>\n

On a recent visit to an adult education college in the coastal town of G\u00e4vle, about two hours drive north of the capital Stockholm, L\u00f6fven recommitted to his partys vision of full employment in his country.<\/p>\n

\u201cUnemployment must be reduced, everyone who can work should work,\u201d he told reporters.<\/p>\n

He faces a stiff challenge. G\u00e4vleborg county, which includes G\u00e4vle, has among the highest rates of unemployment in the country, at around 9.5 percent, and, like the rest of Sweden, it is struggling to integrate large numbers of immigrants who arrived during Europes 2015 migration crisis. The jobless rate nationally rose to 7.1 percent in August, the highest since December 2015.<\/p>\n

\nWith opinion polls showing voter support for the Social Democrats ebbing, L\u00f6fven can ill afford a prolonged period of economic stagnation.\n<\/p><\/blockquote>\n

Exporting industries are now also facing the dual threats of a no-deal Brexit and a U.S.-China trade war. Economic growth in Sweden was just 0.1 percent in the second quarter of this year and a survey of manufacturers this month showed activity fell to the lowest level<\/a> since 2013.<\/p>\n

At the college, L\u00f6fven met a group of students who already have professional qualifications from abroad and who are now learning additional skills needed for the Swedish labor market, including the language.<\/p>\n

Several took the chance to challenge L\u00f6fven.<\/p>\n

\u201cWhy does it take so long for us to have our qualifications validated?\u201d asked a Palestinian dentist.<\/p>\n

\u201cThere is no path for us onto the labor market,\u201d said an agronomist from the Middle East.<\/p>\n

<\/p>\n

A woman walks by election posters installed in the city of Stockholm in September 2018 | Jonathan Nackstrand\/AFP via Getty Images<\/p>\n

Confidence sags<\/h3>\n

With opinion polls showing voter support for the Social Democrats<\/a> ebbing, L\u00f6fven can ill afford a prolonged period of economic stagnation, and it is vital for state finances that immigrants quickly transition to the labor market and begin contributing to the tax base.<\/p>\n

Support for L\u00f6fvens minority government in parliament also remains fragile and could quickly collapse if the economy were to lose further momentum, raising the prospect of an early election. The next scheduled election isnt until 2022.<\/p>\n

The Social Democrats, the dominant political force for the past century, made their name as the party of workers during Swedens industrialization, but analysts say it has work to do to staunch a loss of blue-collar votes.<\/p>\n

\u201cConfidence in the Social Democrats unemployment policy has fallen in recent years,\u201d said Tommy M\u00f6ller, a political scientist at Stockholm University. \u201cResearch suggests the party has lost its previously so-clear issue ownership in this area, which has been a key factor behind its long-term success,\u201d he said.<\/p>\n

\nIn G\u00e4vle, L\u00f6fven declined to comment on the 2020 target and referred questions to Employment Minister Eva Nordmark, who was traveling with him.\n<\/p><\/blockquote>\n

L\u00f6fven, a former union boss<\/a> who took over as leader of the center-left party in 2012, has put job creation at the center of much of his strategy.<\/p>\n

In 2013, needing to build momentum to dislodge the two-term, center-right government of Fredrik Reinfeldt, L\u00f6fven announced a surprise target at his partys congress in Gothenburg.<\/p>\n

\u201cWe are going to reach the lowest unemployment rate in the EU, that is a binding target goal on the way to full employment,\u201d L\u00f6fven said. He set a deadline of 2020.<\/p>\n

He edged the election in 2014 and continued to defend his ambitious unemployment target despite growing signs that it was unrealistic.<\/p>\n

Another unconvincing victory<\/a> at the polls in 2018 has left him reliant on a complex alliance<\/a> of four other parties to stay in power, and this year, pressure increased on him to drop his jobless target. In September, a ranking of the 28 EU states unemployment rates saw Sweden in 22nd place, down from 12th in 2013.<\/p>\n","protected":false},"excerpt":{"rendered":"

G\u00c4VLE, Sweden \u2014 Swedens beleaguered leader Stefan L\u00f6fven, who took four months to form a government ..<\/p>\n","protected":false},"author":1,"featured_media":133839,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-133838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nSwedish slowdown imperils PMs job promise - Business News Report<\/title>\n<meta name=\"description\" content=\"G\u00c4VLE, Sweden \u2014 Swedens beleaguered leader Stefan L\u00f6fven, who took four months to form a government ..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/swedish-slowdown-imperils-pms-job-promise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Swedish slowdown imperils PMs job promise - 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