From Prosperous Town to Sweden's Highest Unemployment Rate

Perstorp, a small municipality in Skåne County, is facing significant economic challenges, resulting in the highest unemployment rate in Sweden. The local community, once thriving due to its industrial base, is now grappling with the repercussions of job losses and social issues.

Ronny Nilsson, the chairman of the municipal council, welcomes visitors to the town under a clear sky, where sturdy birch trees dot the square, awaiting the arrival of spring foliage. Surrounding the square, there are residential buildings, a bustling library, grocery stores, and a local eatery famous for its long kebab rolls. However, the absence of an employment agency is a stark reminder of the town's struggles.

Nilsson expresses concern over the persistently high unemployment figures, anticipating that they will remain elevated for years due to the current socio-economic climate. Despite this bleak outlook, he emphasizes a silver lining: many local businesses are eager to hire and train new employees.

Reflecting on the town's past, Nilsson recalls the economic boom of the 1960s and 70s, when industries flourished and absorbed anyone willing to work. However, over the past two decades, more than 1,000 jobs have vanished from Perstorp, leading to its grim standing as the municipality with the highest unemployment rate in Sweden.

Nilsson links the town's plight to various factors, including social dumping from neighboring coastal cities, which have offloaded some of their social issues onto Perstorp.

The history of Perstorp dates back to 1881, when it was founded by a German entrepreneur drawn to the area's forests for charcoal production, which was later transformed into methanol and formaldehyde.

Despite an oversupply of affordable housing built during the town's prosperous years, many refugees arrived in Perstorp between 2014 and 2015, and some remain in the area, struggling to secure employment. Nilsson points out the critical importance of language skills for integration into the local job market.

While the municipality lacks an official employment service, it operates an employment unit led by Martina Engberg, who focuses on assessing the long-term unemployed and facilitating collaborations among various organizations to help individuals re-enter the workforce. Engberg notes that many participants in their programs face significant barriers, whether due to social challenges or insufficient language proficiency.

Among the participants is Anna, a 56-year-old woman who has been out of work for 13 years. She recalls a time when finding jobs was simpler and more straightforward. Now, she has attended various activities organized by the employment unit for a year. Engberg mentions that typically, around 120 individuals pass through the employment unit annually, but currently, only 50 are actively engaged, with many not registered with the employment agency due to varying needs.

Another participant, Huda Mohammad, a facilitator at the employment unit, shares her journey from Syria to Sweden and her current role in guiding others facing similar challenges. She aims to help a group of Arabic-speaking individuals navigate the job market, as they express frustration over limited opportunities.

The Perstorp industrial park, spanning 520 hectares, remains a significant employer in the region, despite the high unemployment figures. Approximately 1,500 people work within the park, manufacturing essential chemical products. Many employees commute from surrounding areas, and while some jobs may appear simpler, the right mindset and commitment are crucial for potential employees.

Michael Cronqvist, the CEO of Perstorp AB, emphasizes that while the company continues to adapt and change, the disconnect between the local community and the industry has grown. Historically, residents would often work for Perstorp AB, but as the company has evolved into a global entity, the relationship has weakened.

Both Nilsson and Cronqvist agree that educational outcomes play a significant role in the current unemployment crisis. The decline in the number of well-educated residents has contributed to lower school performance, which in turn affects employability.

As Perstorp navigates these challenging times, the community's resilience and adaptability may prove pivotal in overcoming the obstacles they face.