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Swedish service sector in total reversal as expectation of job growth in the sector deteriorate

Tuesday, 12 March 2013
Swedish service sector seems to have come to a grinding halt if a report from the service organisation, Almega is to be taken seriously.

The workers Union, Almega which deals with the service sector posit in its service indicator for the first quarter of this year, there could be a weaker growth in the service sector when compared to the fourth quarter last year, when growth was 1.3 percent in the service sector. Now the organisation's service indicator points to growth slowing further and could land at zero growth.

Almega labour market indicators suggest that employment in the service sector started to fall in the first quarter of this year. Similar observation for such situation was during the crisis year 2009.
"A weaker production at the beginning of the year, combined with an expected slow recovery indicates that employment situation in the services sector will decline this year and in somewhat greater extent than Almega expected in the autumn. This means that some 5,000 fewer people will be employed in 2013 in the private services, "said Lena Hagman, lead economist at Amalga.

According to Amalga, Sweden today is very much a service-orientated society. Nearly 75 per cent of the economically active population works with the provision of services, either in private companies or the public sector. The private service sector has created the majority of new jobs since the mid-1990s.

The concern is that falls in this sector would hit the Swedish job market overall because this sector is an area that accounted for the largest job growth of all in the service industries in recent years in the country.
by Scancomark.com Team

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