Strong jobs growth continues
Jobs growth has now been at around 3 per cent in the past three quarters. In the latest quarter (Q2), the increase was greater than in both the Malmö and Stockholm regions (1.5 per cent and 2.6 per cent respectively).
“Most new jobs are being created in the business service and retail sectors as well as in the health care and social care sectors. We have seen that the automotive industry and the construction sector are recruiting on a large scale,” says Peter Warda, analyst at Business Region Göteborg.
In early June, Volvo Trucks announced that it needs to recruit 300-500 people during the autumn to cope with the increasing truck production. In late-August Volvo Cars announced it was starting a recruitment campaign as it needs 400 new engineers. Meanwhile, the new jobs in the building sector are linked to the region’s investments in urban development, which total an estimated SEK1,000 billion over the coming years. Among the projects is River City, Scandinavia’s largest urban development project located in central Gothenburg.
The unemployment rate in the Gothenburg region continues to drop and during the past year the decline is greater than in other Swedish big city regions. In August 2016, the unemployment rate was 5.9 per cent in the Gothenburg region. The equivalent figure for the Malmö region was 10.1 per cent, for the Stockholm region it was 6.1 per cent and for the nation it was 7.4 per cent.
Several other economic indicators also show a positive development for the Gothenburg region. For example, new car registrations had strong gains and both guest nights and flight passenger numbers have improved on last year.