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WORKING IN SWEDEN

Swedish long-term unemployment continues to rise

Long-term unemployment rose for the second month in a row last month, according to new figures from Statistics Sweden.

Swedish long-term unemployment continues to rise
Almost one in four young people were unemployed last month, once figures are seasonally adjusted and smoothed. Photo: Jessica Gow/TT

“In July, long-term unemployment rose by 45,000 people compared to July last year,” Statistics Sweden statistician Louise Stener said in a statement.

The agency recently said that the Swedish economy is in a “clear recession” according to almost all indicators, and unemployment figures are also reflecting that.

The number of people aged 15-74 who were in work amounted to 5,444,000 individuals, not seasonally adjusted – that’s a decrease of 80,000 compared to July last year, but not all of those people were classified as long-term unemployed (unemployed for at least 27 weeks).

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Long-term unemployment amounted to 164,000 people, with significant differences when broken down by age and gender.

There were 71,000 women and 93,000 men in long-term unemployment, and 149,000 young people (aged 15-24 years). Youth unemployment hit 17.7 percent, which is an increase of 6.5 percentage points. This data is not smoothed or seasonally adjusted.

The unemployment rate for 15-74 year olds according to smoothed and seasonally adjusted data stood at 8.3 percent – that’s the highest unemployment rate in a decade, including the pandemic. Youth unemployment was even higher, at 24.4 percent.

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BANKING

Sweden jails former banking boss over ‘swindling’

A Swedish court on Tuesday sentenced the former chief executive of Swedish bank Swedbank to 15 months in prison for deceiving investors about the bank's links to a money laundering scandal.

Sweden jails former banking boss over 'swindling'

Birgitte Bonnesen was found guilty of “gross swindling”.

Her lawyer, Per Samuelsson, told Swedish news agency TT he was “in shock” over the conviction and would file an appeal.

The Svea Court of Appeal overturned a district court ruling from 2023, which had acquitted Bonnesen, and comes five years after the eruption of a money laundering scandal implicating Swedbank.

In 2019, Swedish public service broadcaster SVT alleged that at least 40 billion kronor (equivalent at the time to $4.4 billion) of suspicious and high-risk transactions had been channelled to Baltic countries, notably Estonia, from Swedbank accounts.

The revelations, which saw the bank’s share price tumble, led to Bonnesen being fired.

The following year, Sweden’s financial regulator fined the bank four billion kronor and warned it to follow anti-money laundering laws.

Prosecutors later charged Bonnesen, accusing her of “intentionally or by aggravated negligence” providing false or misleading information about the steps the bank had taken to prevent and detect suspected money laundering.

“The court concludes that the former CEO disseminated misleading statements in interviews with the Swedish newspaper Svenska Dagbladet and the Swedish news agency TT in connection to the bank’s release of its third quarterly report for 2018,” the court said in a statement.

“The statements conveyed the misleading message that there did not exist any suspicious money laundering links to the operations in Estonia of another bank,” it added.

Bonnesen’s comments were deemed to be “liable to influence the assessment of the Swedish bank from a financial point of view, and thereby cause a loss”, according to the court.

Prosecutors had also charged Bonnesen with revealing insider information by informing the bank’s main owners that the investigative documentary was coming.

However, the appeals court found that the information shared with the owners was not of “specific enough nature to be considered insider information”, it said in its ruling.

It – like the district court – therefore acquitted Bonnesen of the charge.

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