How does AI affect the Swedish labor market?

Erik Normark
Dec 19, 2025
2 min read

The development of AI has started a structural transformation of the Swedish economy and labor market comparable to the IT transformation in the 90s, others compare it to the railway boom in the 19th century. It is clear that we are in the midst of a change with consequences that are difficult to foresee. How will it affect the unemployed?

In a report from the Swedish Labour Market AI Council (2025), it is estimated that up to 70% of work in the service sector can be supplemented or partially replaced by AI. But given that 80% of the Swedish workforce works in the service sector, it will likely have major effects.

Many people already use AI in their daily work, but it varies greatly depending on the sector and industry. The fastest transformation is expected to be in the private service sector – and there in financial services, information/communication, administrative support services and law. However, the transition is expected to be uneven due to differences in skills and capacity. The AI Council's view of the future is optimistic, however, and believes that AI can strengthen competitiveness and become an engine for the entire economy.

But not everyone is equally optimistic. The non-profit think tank Swedish Job Tech (2025), consisting of experts in labor market issues, concludes that 6-7% or 300,000 jobs will disappear within a ten-year period. The situation is described in urgent terms. To meet the challenge, Job Tech proposes a knowledge boost, and targeted efforts that help people adjust to the changing needs and conditions of the labor market.