(Bloomberg) -- The number of bankruptcies in Sweden increased by 14% in September from a year earlier, weighed down by a slump in the construction, hotel and restaurant industries, according to data from credit reference agency UC.

“What we are now seeing during the month of September is a frightening development where the high bankruptcy levels have begun to stabilize,” UC Chief Executive Officer Gabriella Goransson said in a statement.

Goransson sees real risks for the labor market and increased unemployment as a result of the high number of bankruptcies. In the construction industry alone, more than 3,000 employees have lost their jobs as a result of companies going bust, she said.

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Similar trends were also highlighted by Creditsafe, another Swedish credit agency. Last month showed the 14th increase in a row for bankruptcies in the nation with sports halls, retail and real estate sectors taking the biggest hits.


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