This is how the new budget will affect Swedish retail

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The Swedish government presented the budget for 2016 yesterday.
But the Swedish Trade Federation are concerned that the costs for young employees will increase by 3.5 billion SEK.
“The government should make it easier to hire, not harder”, Svensk Handel CEO Karin Johansson comments on the government’s budget.

Karin Johansson says that it is commendable that the government wants to facilitate the matching of the labor market, but it will not help when costs are rising so sharply.

“The reduced employer contributions for young people has given young people more jobs in the trade. Now that it is raised it increases the cost of retail trade by 3.5 billion SEK. In addition, it will be higher transport costs due to the increased tax on fuel. If the government is serious about bringing down unemployment, we should make it easier to hire instead of harder, then the trade will provide more jobs, “says Karin Johansson, CEO of Svensk Handel.

Svensk Handel’s Chief Economist Jonas Arnberg talked about the effects of the new budget this morning. You can see the seminar here.

He pointed out that the evaluation of the reduced employer contribution was made 2006-2010 where the employment rate decreased – but has heavily increased among young from 2010.