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Stockholm Economy Q2 2012: Stronger private sector during second quarter

pressreleaseTuesday, October 09, 2012

During the second quarter of 2012, total wages continued to rise in Stockholm, driven by a stronger private sector. Sales climbed in all sectors. Employment is still increasing, but at a more subdued rate. Construction is declining, but the strong increase in the number of people moving to Stockholm continues.

During the second quarter of 2012, total wages rose by 4.1 percent in Stockholm County and by 4.7 percent in the City of Stockholm compared to the previous quarter. Growth therewith declined in the county, but increased in the city compared to the previous quarter. In the rest of Sweden, growth was 3.7 percent during the period. Sectors with the strongest development were healthcare and education.

"Stockholm is a stable growth region despite a weak world economy." says Olof Zetterberg, CEO for Stockholm Business Region. "We have a good starting point for continuing to serve as a safe haven for residents, businesses and investors."

Employment continues to increase but at the same time, the number of job openings is decreasing and unemployment is rising. One of the explanations for this is the continued strong increase in new residents. Another 9,583 persons moved to the county during the quarter, of which 3,811 moved to the city.

Residential construction is still low, with construction started on 1,132 apartments in the county, with 762 of these in the city. The decline was sharpest for single-family dwellings, with a decrease of more than 80 percent. Nonetheless, Stockholm continues to be a magnet for international visitors, with an increase during the quarter of 5 percent in the county and 6 percent in the city.