Swedish technology industry shows signs of strengthening

The Swedish technology industry is showing signs of strengthening. According to Teknikföretagen’s business climate barometer for the third quarter of 2026, the business climate index reached 102, slightly above the normal value of 100. This recovery in Sweden has been more pronounced than in the Eurozone. Capacity utilization has increased, reaching a long-term average of approximately 40 percent, with the automotive industry reporting the highest usage.

Despite these positive economic signals, structural challenges remain. There is a reported increase in labor shortages for both skilled workers and engineers/technicians, particularly within the machinery industry. Erik Spector, Chief Economist at Teknikföretagen, emphasized the need for political reforms to bolster long-term competitiveness.

In the broader tech sector, TechSverige reports a fragile recovery. While revenue in software, IT services, and hardware manufacturing grew by over 8 percent during the first half of 2026, the labor market has not yet fully turned. Job vacancies in information and communication fell by 40 percent compared to the previous year, and layoffs in telecom and software sectors saw a significant increase between August 2025 and July 2026. However, some employers indicate plans to increase headcount as demand strengthens.