CAFO Working Papers,
Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics

Abstract: Since the end of 2008 there is an economic recession in the world inducing a contraction in the Swedish economy. The recession has to a great extent been a recession in the manufactory sector. During the same period the number employed in the Swedish manufactory sector decreased by about 14 percent. A recovery started in 2010. The study shows that while immigrants born in Europe have not suffered more than natives since late 2008, immigrants born outside Europe have experienced a sharp deterioration in labour market situation compared to natives. The study presents some explanations. From late 2010 the situation has stabilized. There is also a comparison with the labour market situation for immigrants during the recession in the beginning of 1990s. The employment gap between natives and immigrants born outside Europe has not widened as much in the recession 2008 – 2010 as it did during the early 1990s.

Keywords: Recession; Immigration

JEL-codes: J01

16 pages, May 1, 2011

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