Stockholm Chamber of Commerce - Serious Labor Shortage Puts The IT-sector In Decline

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Serious Labor Shortage Puts The IT-sector In Decline

The economy in Stockholm remains strong albeit several sectors reporting declining growth and pessimistic times. The IT-sector, coupled with trade and the construction sector, falls behind.

Andreas Hatzigeorgiou, chief economist at the Stockholm Chamber of Commerce, emphasizes that businesses in Stockholm are less optimistic.

– The IT-sector has been key in the growth of the Stockholm economy. Now growth is declining in the sector and the confidence indicator falls as well. The IT-companies in Stockholm has had a steady growth and contributed to computer programming becoming the most common profession in the capital region. The IT-sector is now slowing down and it is a grave concern. Close to 80 percent of the IT-companies now reveal they have a labor shortage, says Andreas Hatzigeorgiou.

– My assessment is that the IT-sector could have continued its growth path had it been easier to recruit key competence from abroad. We must put an end to deporting competence immediately, says Andreas Hatzigeorgiou.

Besides the IT-sector, there is also a decline in the construction sector and trade.

– Overall, the construction sector continues slightly better than normal, having said that, for the first time in three years we see a clear decline in the order stock of the construction sector. The business outlook in the construction market, a year onwards, is pessimistic, says Andreas Hatzigeorgiou.

 Main points of the report:

The jobs market is at its best in seven years. Newly employed increases, although labor shortage has reached record levels. Especially for businesses within construction – and IT, difficulties in finding labor is critical.