Job vacancies hit record high

The region’s business environment is in a boom state with the manufacturing sector performing the strongest. The overall economic tendency across all sectors was 112, which is on a par with the previous quarter. It was the fourth consecutive quarter with booming conditions (indicated by an economic tendency of greater than 110).

Demand for labour is high across all sectors. During the first quarter, employment rose to 549,000, up 20,000 on the same quarter last year (+3.8 per cent year-on-year).

The unemployment rate in the Gothenburg region continues to decrease and was 5.7 per cent in May, which is less than the average seen pre-pandemic, between 2014 and 2019. Meanwhile, in the Stockholm region the unemployment rate was 6.3 per cent, in the Malmö region it was 8.9 per cent and 6.7 per cent for Sweden as a whole. 

In the Gothenburg region, all sectors expect to increase employment during Q2 and for services the recruitment plans are the highest seen since the year 2000. 

The number of newly registered job vacancies in the Gothenburg region was record high, with an average 13,000 per month, between February and April 2022. 

Electric car company Polestar, Northvolt and Volvo Cars joint venture, and hotel group Scandic are among the businesses who are looking to hire new employees. Meanwhile, within construction and services, a shortage of labour has hampered the production pace during the past quarter. 

“We have noticed this for some time. Skilled workers are needed in almost all sectors, in both small and large companies,” say Henrik Einarsson, director of business establishment and investment at Business Region Göteborg.

“It is largely due to the fact that there is a lot of international demand for products and services from western Sweden, often as these international companies want to invest in new climate-smart solutions,” says Henrik Einarsson.   

Growth hampered yet outlook still positive 

The war in Ukraine has led to growth forecasts being lowered across almost all markets, both in 2022 and 2023. The weakening varies between countries. Swedish growth is expected to be 2.5 per cent this year and 1.4 per cent next year.  

The Gothenburg region’s main export markets have somewhat higher expectations. The region’s largest export market, the US, is expecting 3.3 per cent growth this year. At the same time, in the Eurozone, growth of 3.1 per cent is expected, while China’s economy is forecast to grow by 4.8 per cent.    

“Just now, we are continuing to see good growth forecasts if we compare historically. They are comparable to the figures seen in the previous boom period,” says Peter Warda, senior analyst at Business Region Göteborg and primary author of the report. 

“But looking ahead, there are some risks looming such as the current threats to global security, disruptions in the production of vital inputs, labour shortages and growing inflation with possibilities for rising interest rates,” says Peter Warda.

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• Economic Outlook #2 2022 - Report
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