Economic recovery will create new jobs in Sweden – but youth, immigrants and elderly still face hard times.

• Swedish firms aim to tackle work-related stress
• IMF: Economic growth still uncertain for Sweden

Sweden's gloomy employment situation is expected to improve over this and next year as the country's economy recovers, a new forecast by the Swedish Public Employment Service said Wednesday.

However, since new people enter the job market the drop in unemployed will be gradual and not drop strait away. Youth, immigrants and elderly will continue to have a tough situation finding jobs.

Sweden's unemployment rate jumped to 9.8 percent of the workforce in April from 9.1 percent a month earlier, the national statistics agency said last month, announcing a much higher rise than expected.

The Employment Service predicts that joblessness will top 9.1 percent this year, before falling to 8.7 percent next year.

The International Monetary Fund (IMF) said that Sweden has weathered the global downturn relatively well. But economic outlook still looks unclear for this and next year and the organization urged Sweden’s central banks to tread carefully in raising interest rates.

The Scandinavian country was hard-hit by the global economic crisis but its economy quickly bounced back. The country's GDP increased by 3 percent in the first quarter compared to the first quarter of 2009; considerably stronger than expected.