Almega reports service sector growth amid AI labor shifts

The Swedish service sector is experiencing a recovery, with production growing by 3.4 percent over the past year. According to Almega, the sector has seen the creation of 27,000 new jobs, representing a 1.0 percent increase. However, employment growth is significantly lagging behind production levels.

Almega Chief Economist Patrick Joyce notes that while staffing and support services are growing fastest due to industrial demand, the information and communication sector presents a different trend. Despite a 4.8 percent increase in production within that sector, employment has decreased by 3,500 people over three consecutive years.

This discrepancy is attributed to the impact of artificial intelligence. AI tools, such as Claude, are increasingly capable of handling tasks in software development, allowing companies to boost production without increasing headcount. This shift particularly threatens junior IT roles and entry-level positions for those with basic technical training, as AI begins to replace the simpler aspects of software engineering and coding.