IT skills shortage threatens 30,000 new jobs

The Stockholm region's IT industry has been a guarantor of high employment in times of both boom and recession, and 20,000 people could be employed in the next three years alone. But this requires investment from politicians, industry and academic institutions.

This is according to Ulla Hamilton, Mayor of Stockholm, Chris Heister, Governor of Stockholm County, and Anne-Marie Fransson, Director of IT&Telecomföretagen, who present a new survey of the skills shortage in the IT industry.

The capital region generates one third of Sweden's economic growth and its role as the economic center and growth engine of Sweden as a whole is becoming increasingly firmly established. Last year, Stockholm accounted for over 30% of new business start-ups and almost a quarter of the country's total labor market. But alarming problems in meeting the already high and growing demand for skilled labor in the IT industry, which is so important for the capital region, now threaten this development. This is the conclusion of the IT&Telecom companies' first comprehensive survey of the skills shortage, which was presented on Monday at a seminar organized by Stockholm IT Region - a collaborative project between the business community and the public sector in the IT field.

The mapping shows that at least 30,000 people could be hired over the next three years in Sweden. Given that more than 60% of jobs are in Stockholm, 20,000 new hires should take place in the region. The survey, which is based on both in-depth interviews and quantitative surveys with IT companies, shows a strong or very strong need to recruit people with all kinds of IT skills over the next three years. Very high demand refers to the need to hire at least 10% more people in a given category per year.

The categories most in demand are IT architects, project managers and testers. Software/systems developers and business consultants are also in high demand.

To meet demand and thereby create at least 20 000 new jobs in the region, several measures need to be taken.

1. ensure the inflow of international students

The IT industry is global and it must be easy for people with the right skills from other countries to come here, both to study and to work. It is worrying if Sweden risks losing students due to the introduction of tuition fees for overseas students in 2011. We therefore want to closely monitor the consequences of the introduction of tuition fees. Linked to this, the processing of work permits for labor immigration must also be both accelerated and facilitated.

2. increased investment in training in professional Swedish for IT experts

Measures are needed to make it easier for those who have arrived in Sweden to enter the industry. For this, training in vocational Swedish needs to be strengthened. The joint model for training in Swedish for professionals (Sfx), developed by the County Administrative Board and the county's municipalities, is a well-tested model that can be further developed. The City of Stockholm wants to be prepared, together with the County Administrative Board and the county's municipalities, to expand the courses to include IT professions.

3. more vocational training in engineering and IT.

In addition to the general need for IT skills, there is a particular need on the telecom side. Efforts need to be made to provide vocational training for field technicians, both at secondary and tertiary level, to replace the large group retiring in the coming years.

4. strengthened collaboration between industry and education.

Schools and academia need to do a better job of clarifying the requirements for social and intercultural skills, and businesses need to make clear how important these skills are. It is no coincidence that 'relationship-oriented' IT roles such as project managers and business consultants are among the most sought-after.

5. targeted efforts to attract more people to IT education - especially women.

Given the wide range of skills needed, we all need to help make the IT industry and IT education even more attractive to young people and women. This is a long-term challenge that we need to work on continuously and is being highlighted in all EU Member States this week through the European eSkills Week campaign.

We are now stepping up our efforts to address the skills shortage in the IT sector. But not all decisions are ours to make. We will take responsibility where we have the power, as a municipality, county administrative board and industry, but to ensure the supply of skills when the IT industry successfully fills 20,000 new jobs.

Anne-Marie Fransson, IT&Telecom Industries

Ulla Hamilton(M), Labor Market and Entrepreneurship Mayor of Stockholm

Chris Heister, County Governor of Stockholm County