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29 December 2024

Northvolt Layoffs Hit Skellefteå Youth Job Market Hard

Local residents adapt to new job realities and rising housing costs as major layoffs reshape the economy

Skellefteå, Sweden, has long been known for low youth unemployment, but recent layoffs at Northvolt are changing the local job market dynamics. With 338 employees losing their jobs following company restructuring, many young professionals are feeling the squeeze. Among those affected is Moa Olsén, 22, who was recently let go from Northvolt, where she had built her career.

"I thought I would be safe because I had been with the company for almost three years," Olsén said, recounting her surprising dismissal, which came just weeks after buying a home with her fiancé, Lukas Arvidsson. She’s struggling to adapt to the harsh job market, stating, "Even though Skellefteå has job opportunities, none seem to match the salary level I was accustomed to."

The sudden influx of workers due to Northvolt's rapid expansion resulted in soaring housing demand. Local resident Filippa Andersson, 22, shared her own experience. "It became extremely difficult to find rental accommodation after Northvolt opened its doors and more people moved here. I had to live with my parents for some time because finding housing was impossible," she explained.

Despite her initial plans to explore life outside Skellefteå, Filippa found herself drawn back home, realizing she preferred its safety and community connection over larger cities. “New York was cool, but it was overwhelming. I appreciate how everyone knows each other here, and it feels secure,” she said. Many young residents echo this sentiment, noting they feel more at ease compared to the dangers they associate with metropolitan areas.

Though Olsén is actively job hunting, she admits, "I can't just pick up any job. My expenses are high because of my home. My mortgage alone is over 20,000 kronor per month; I can't go back to low-paying restaurant jobs." The reality is stark: skilled jobs with decent wages are critically limited.

Both Moa and Lukas, who remained employed at Northvolt, reflect on how the company increased wages to attract more staff, adjusting the entire wage structure within the region. Lukas emphasizes, "Northvolt was desperate for workers, pushing salaries up, which creates pressure on local businesses trying to hire. It’s kind of hurtful to see how they are now managing layoffs after all this. They could have kept more people on."

The dire circumstances surprise many, with Moa noting citizen frustration over how the layoffs were handled. "It’s disheartening to think there were funds for bonuses instead of retaining employees," she remarked. This statement resonates with other community members as Skellefteå faces uncertainty against the backdrop of Northvolt’s actions.

Yet among the challenges, local youth unemployment remains near zero, as many find work through personal connections. For Filippa, who currently works at a bank and also as a TikTok influencer, the shifting job market has provided her alternative opportunities. "It’s funny, I have more followers on TikTok than people living here! It opens doors for me, and the city is changing as new shops and activities emerge. I feel lucky. Still, it’s odd to see my peers struggling to find jobs after Northvolt's layoffs."

Looking to the future of Skellefteå, local residents express hope. They discuss diverse paths forward, with many young people content to stay and build their lives anew, creating a buffer against the dangers they perceive looming elsewhere. "It’s not about working ourselves to the bone but making sure we live peacefully and securely," noted one local voice.

While the road to recovery from Northvolt's downsizing remains uncertain, the community reflects resilience, pointing to the benefits of staying connected. From new recreational spots popping up around the cultural house to the hopeful conversations about the future, Skellefteå appears to be at yet another turning point, balancing change and community values.

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