Sweden has for many years had high unemployment and the problem is often attributed to the financial crisis and its effects on the labor market. This paper aims to conduct studies for Finland and Sweden to investigate whether Sweden would have had higher or lower unemployment given entry into Euro currency collaboration in connection with the 2003 referendum. The essay is delimited to the time period 1993-2013 and deals with unemployment trends over the period. Based on theory and previous research, we found that the main factors affecting unemployment is employment, labor force growth and productivity, inflation, exchange rate and public debt. We used OLS-regressions, one for Finland and one for Sweden, with a dummy variable for Finland’s membership in the EMU. Our result is that the euro would likely have been positive for Sweden with respect to unemployment. The essays empirical study shows that Finland had a positive effect of the EU collaboration and Sweden suffered from higher unemployment because of its exchange rate fluctuations. However, it is very difficult to say that the effects