When the budget was presented earlier this autumn, the City of Malmö estimated to save SEK 200 million.

Due to the current economic crisis caused by corona, it is no longer possible. That is why the budget is being redone, the chairman of the local council Katrin Jammeh Stjernfeldt tells SVT.

Unemployment is believed to increase sharply

Corona pandemic has hit hard on Malmö and the situation is described as difficult to assess. Despite cautious forecasts, unemployment is believed to rise sharply.

Many Malmö residents have been far from the labor market before the pandemic. Malmö's Board of Directors therefore considers it necessary to take extra measures in order for more residents to become self-sufficient.

Most of the money goes to welfare support, followed by labor market initiatives. SEK 100 million goes to extra labor market initiatives and 55 million to adult education and support for student health.