How Skellefteå can break free from the Northvolt curse

Unemployment has surged following Northvolt’s bankruptcy, leaving more than 3,000 residents without jobs. At the same time, the population has grown – and hopes for a future of growth still remain. The question is: how do we prepare the municipality for its next chapter? Norran's political editor, Andreas Westerburg, has some ideas.

Lorents Burman (S) still believes that Skellefteå municipality can be a sustainable place for a better everyday life.

Lorents Burman (S) still believes that Skellefteå municipality can be a sustainable place for a better everyday life.

Foto: Wilhelm Sandelin Anton

Ledare2025-07-29 16:00

Unemployment is rising rapidly in Skellefteå. According to the news site Newsworthy (July 16), the number of jobseekers has more than doubled compared to the same period last year. 

In mid-July, 3,233 residents were registered as unemployed—over 2,000 more than a year ago.

Despite these figures, mayor, Lorents Burman (S) remains optimistic, attributing the spike primarily to Northvolt’s collapse rather than a broader downturn in the business sector.

– This is a very different kind of unemployment. We’re very sorry so many have left Skellefteå. We hope a new battery manufacturer will take over soon, and that those who left will want to return, he told Norran (July 28).

Northvolt Ett in Skellefteå, June 2025
Northvolt Ett in Skellefteå, June 2025

There are indeed reasons to share his optimism. Firstly, long-term unemployment in Skellefteå remains at a record low (Newsworthy, July 16). Secondly, the population is significantly higher than before Northvolt’s arrival.

According to the municipality’s statistics page, based on data from Statistics Sweden (SCB), Skellefteå had 76,724 residents in mid-July. Five years ago, that number was just under 73,000.

This suggests that many of Skellefteå’s newer residents have chosen to stay, even as job losses mount. In other words, not everyone has immediately moved away after losing their jobs. 

However, these positive conditions could shift quickly; many might choose to leave in the autumn. That’s understandable, but regrettable.

Many are hoping that developments around the battery factory will lead to a new owner and a fresh start. That could bring unemployment down and prevent population decline. But in the long term, Skellefteå’s fate cannot depend on a single large employer - it’s too risky. 

Therefore, the municipality and its people must find ways to diversify the business landscape and job market. Right now, three types of stakeholders especially need to step up:

Andreas Westerberg is political editor of Norran.
Andreas Westerberg is political editor of Norran.

Businesses:
Small and large companies in Skellefteå should assess their immediate potential for hiring. While all businesses must manage costs carefully - no company wants more staff than necessary - if people begin to leave, companies may soon face a skills shortage. 

Among the unemployed are many skilled and experienced workers. This presents an opportunity for local businesses to invest in new talent and build resilience.

The state:
Battery factories should not be a political issue. However, the state can support developments that enhance community competitiveness. Skellefteå requires improved roads, better flight connections, broader higher education options, and stronger government services. 

These improvements benefit everyone and attract future investment. The national government can significantly contribute to this.

The municipality:
Skellefteå has too few entrepreneurs, ranking 220th in Sweden for business ownership (Företagarfakta 2024), which contributes to a narrow and vulnerable job market. 

The political majority claims it’s working to change this, but current efforts do not seem to go far enough. If Skellefteå wants to foster new ideas, the municipality needs to be bolder - for example, by placing more trust in entrepreneurs to contribute to public services.