The tech industry is in a wait-and-see mode – the recovery continues at a slow pace
The first Techtemperature survey of the year shows that the tech industry is in a wait-and-see mode. At the same time, there are signs of a gradual recovery, but the trend remains uneven.
The Tech Temperature, TechSweden’s economic indicator of the economic situation in the tech industry, stood at -2 in March. This means that the trend remains below the neutral level and reflects an industry where demand has not yet fully recovered, particularly in the IT services sector.
“We’re seeing a modest uptick, but the recovery is slow and far from evenly distributed. The volume of projects among IT service companies is still too low to have a clear impact on the industry’s development,” says Christina Ramm-Ericson, chief economist at TechSverige.
At the same time, investment in AI and cybersecurity continues, and most companies report that both demand and employment are rising, albeit from modest levels.
“Investments in new technology are crucial for competitiveness and for future-proofing businesses in an increasingly uncertain global environment,” says Christina Ramm-Ericson.
Cautious labor market, but still many job openings
The labor market continues to show cautious growth. Employment is rising slightly, and layoff notices have decreased from previous high levels.
At the same time, the number of job openings has declined, but there are still thousands of positions available, and the tech industry continues to have the highest number of job openings relative to the number of employed workers compared to other industries.
“The labor market is gradually stabilizing, but there are still challenges in matching job seekers with employers, and some caution regarding new hires,” says Christina Ramm-Ericson.
Increased activity – but an uncertain economic climate
New business start-ups rose by 20 percent in 2025, and venture capital investments are growing again, signaling a degree of optimism about the future. At the same time, the outlook is marked by geopolitical unrest and uncertainty regarding interest rates.
“In an uncertain environment, stable and predictable conditions are crucial for companies to have the confidence to invest and grow,” says Christina Ramm-Ericson.
Overall, the recovery is continuing—but at a slow pace.
“The tech industry is a key driver of growth and transformation. To bolster this development, we need long-term conditions that support investment, the supply of skilled workers, and competitiveness,” says Christina Ramm-Ericson.