Swedish retail pessimism before budget-chaos

      Comments Off on Swedish retail pessimism before budget-chaos

One of three stores bring in extra staff before Christmas.
But before the Swedish budget-chaos, the retail business turned pessimistic in their future expectations.

This Christmas season creates a total of about 20,000 additional jobs according to the Swedish Trade Barometer.

”Christmas gets the wheels turning. When holiday shopping season hits new record it’s a push for the labor market for young people,” says Jonas Arnberg, chief economist at the Swedish Trade Federation.

One of the three retailers (35 percent) responded that the store takes in extra staff during December to boost up staffing during the Christmas season. For retail as a whole, it would mean that the holiday shopping season contributes with a staff increase of 7.5 percent or about 20,000 additional jobs in the month of December.

The future indicator of the Trade Survey, which reports traders’ expectations of sales development and recruitment, decreased sharply from last month’s low of 7 to the current low of -1. But most traders responded believing employer contributions would be raised by year-end. This has led to a sharp increase in pessimism in the view of new recruitment and retention of staff which lowers future indicator.
Since the government’s budget now has fallen and employment fees will not be raised (until further notice) this probably means that retail can both retain and continue to hire staff.