Long-term unemployment on its rise – a blow to the Swedish economy?
Six months into the corona crisis, there is still a small chance of hope. The unemployment rate is slowing down and more people are finding new jobs. At the same time, long-term unemployment is on its way. It affects not only on the individuals in question, but at the society as a whole, according to the article in Dagens industri.
"We are all an important asset that can create value both for yourselves and others in the economy. If you are not involved in value creation, it will impact negatively for the whole society ", explains Jesper Roine, Professor in Economics at the Stockholm School of Economics and Deputy Director at Stockholm Institute of Transition Economics (SITE).
"The longer a person is unemployed, the greater the probability that the individual will not return to work at all", he adds. This means that even when we get a recovery, it is not certain that these people will come back to the job market.
This crisis is different from before - this time the crisis is caused by external factors to the economy - which has put a stop to many different activities and events. Therefore, all types of insurance systems and government guarantees for income should be utilized right now, according to Jesper Roine.
Read the full article in Dagens industri to learn more about the topic. (NB. The article is in Swedish)