Engineer Unemployment in Sweden Hits Decade High, Raising Concerns
Rising unemployment among engineers in Sweden raises alarms over economic confidence and long-term implications.
Key Points
- • Engineer unemployment in Sweden at decade-high levels since May 2025.
- • Concerns raised by Sveriges Ingenjörer regarding future workforce sustainability.
- • Investment in manufacturing sector weakened, leading to job insecurity for engineers.
- • Need for engineers highlighted amid demands for digitalization and climate transition.
As of mid-June 2025, Sweden is witnessing alarming levels of engineer unemployment, reaching the highest rates in over a decade, excluding the pandemic period. According to reports, the rise in unemployment is not merely a reflection of isolated corporate downsizing but is indicative of deeper economic malaise characterized by investment slowdowns and uncertainty within the labor market.
The unemployment rate among engineers has prompted concerns from Sveriges Ingenjörer, who are urging the Riksbanken to intervene to curb this trend. Johan Kreicbergs, chief economist at Sveriges Ingenjörer, warns that the current situation mirrors post-IT crash scenarios, where rising unemployment led to dwindling interest in engineering careers, jeopardizing Sweden's long-term capacity to sustain its technical workforce.
Statistics show a significant decrease in engineers feeling confident about switching jobs, with the proportion believing they could find new positions with better pay dropping from over 60% to under 50% within two years. Meanwhile, the number of engineers actively seeking employment has also declined, reflecting a growing climate of insecurity.
Moreover, the manufacturing sector, previously a growth engine for Sweden, has reported weakened investment during the first quarter of 2025, exacerbating the crisis. The uncertainty surrounding tariffs and trade conditions has led many companies to hesitate in making substantial investments, thus contributing further to the rising unemployment.
With ongoing demand for engineers in critical sectors like digitalization and climate transition, Kreicbergs emphasizes the urgent need to restore confidence in the market to avert long-term adverse effects on Sweden’s industrial competitiveness.