Tech recruits to grow, not to replace
We have been in a prolonged recession. Inflation has put pressure on households and businesses, investments have been postponed, and layoffs have increased in several parts of the economy. This includes the tech industry.
But now we are seeing signs of a turnaround. The new recruitment survey from the Confederation of Swedish Enterprise shows that recruitment needs in the business sector are increasing again. And the tech industry stands out.
For tech companies, recruitment is mainly about growth. New jobs are being created to meet increased demand and drive expansion. As many as 65 percent say that recruitment is primarily growth recruitment. This can be compared with 39 percent in the business sector as a whole.
The proportion of growth recruitment is nearly 30 percentage points higher than the average in Swedish business. This is a clear sign of strength and a signal of confidence in the future, willingness to invest, and continued competitiveness.
In the midst of the crisis, tech continues to hire
Despite the economic downturn, seven out of ten tech companies have attempted to recruit new staff over the past six months. This is a high figure in a situation where many other industries are slowing down.
At the same time, the challenges are clear. Three out of ten recruitment attempts fail, and 68 percent of companies find it difficult to find the right skills.
The biggest shortage is in people with the right professional experience. This illustrates a structural imbalance in the labor market. We have unemployment, but we also have a skills shortage. And in tech, this is particularly noticeable.
When tech grows, all of Sweden grows
The consequences are clear. Fifty-three percent of tech companies have been forced to reduce their sales or turn down orders, compared to 37 percent in the business sector as a whole. Almost half, 49 percent, have also had to postpone or completely abandon planned expansion, compared to 33 percent on average. This is growth that is being lost.
When tech companies cannot grow at the pace they want, it affects Sweden's overall competitiveness.
"This is not just an industry problem. The tech sector is a key growth engine in the Swedish economy. This is where new jobs are created, new solutions are developed, and new export revenues are generated. When tech companies cannot grow at the pace they want, it affects the competitiveness of Sweden as a whole," says Ana Andric, economic policy expert at TechSverige.
Sweden has long been a strong tech nation with a digitally mature population, an innovative business sector, and companies that compete globally. This gives us an opportunity to take a leading role in AI development.
But that requires us to take skills provision seriously.
We need more places on engineering courses, faster and more flexible transition routes for professionals, and a regulatory framework for labor migration that attracts top talent rather than discouraging it. At the same time, the tax and regulatory environment must strengthen incentives to invest and expand in Sweden. If Sweden is to take its place among the world's top ten AI nations, we need to focus our efforts on AI expertise throughout the entire education chain, from primary school to international cutting-edge research, says Ana Andric.
In a situation where companies are already struggling to find the right skills, it is irresponsible to reduce the labor supply through statutory reductions in working hours. Sweden needs more hours worked, more skills, and higher productivity—not reforms that risk weakening our competitiveness.
The recruitment survey shows that the need for skills remains strong and that the tech industry stands out by recruiting for expansion and new business. Now, policymakers need to ensure long-term and competitive conditions that enable more companies to start, grow, and stay in Sweden.
Because when tech grows, Sweden grows.