Sweden's economy has been less badly hit than many by the pandemic, partly due to its less draconian lock-down. But companies have nevertheless radically cut staff, often focusing on workers on temporary contracts, many of them young people.
Among those aged 15-24, the unemployment rate increased to 28.9% on a seasonally adjusted basis in July from 19.8% a year earlier, Statistics Office figures showed.
Youth unemployment has long plagued Europe and pandemic has raised fears of lost generation which could struggle to get a foothold in the labour market as they grow older.
Despite Sweden's generally strong economy in recent years, it has been among those countries where youth unemployment has been stubbornly high - around 20% percent since 2000.
But July's figure was the worst figure for more than 20 years, topping the 27.8% hit in 2009 amid the global financial crisis.
Overall, the labour market was steady in July amid signs the worst is over for the economy, with the seasonally adjusted unemployment rate at 9.2 percent, unchanged from the previous month.
Total employment stood at 5.150 million people, up from 5.101 million people the previous month.
(Reporting by Simon Johnson; editing by Niklas Pollard)
