Debate: Sweden must boost its attractiveness

Every year, international students contribute around SEK 3.5 billion to the Swedish economy, according to a report by the Swedish Institute 2022. Those who stay behind continue to generate hundreds of millions every year, in tax revenue and purchasing power. It is also clear that Sweden's important technology sector will not be able to compete globally without the replenishment of highly skilled foreign labor. All the figures point in the same direction: the skills shortage that tech companies have been sounding the alarm about since 2012 persists. According to recent figures from the Swedish Association of Graduate Engineers, 13 out of 16 major engineering employers say they plan to hire the same number or more engineers this year compared to last year.

It is therefore welcome that the government has indicated that it wants to reduce bureaucratic red tape that prevents highly qualified international talent from matching with Swedish companies. These measures have long been requested by the business community, not least by the many companies that operate internationally.

Reduced hassle is also welcomed by the talents themselves. One example is Esteban, a young software engineer from Colombia who now contributes high-level knowledge to a large Swedish engineering company. The process of moving with his family to Sweden has been time-consuming and costly. But Esteban almost didn't even consider Sweden. Other countries were on the table, and when he was approached by a Swedish employer, his first instinct was to ignore it: "it was too far, too cold, too strange". Only after much research did he learn about the advantages of living in Sweden: educational opportunities for children, a well-functioning society, an inclusive business culture - and that you don't have to know perfect Swedish right away, some companies even have English as their main language.

Esteban's story makes a clear point: the image of Sweden is not as well known and as positive as we might think. In the fierce global competition for highly skilled labor, we need to build attraction around the Sweden brand.

A report from Linköping Science Park, which runs the national program Switch to Sweden, shows that what primarily prevents employers from hiring internationally is the differences in language and culture. For international students, the biggest reason for leaving Sweden after their studies is that Swedish companies are not open enough to international employees. They also state that language is the biggest obstacle to becoming at home in Sweden. Soft values such as language, culture and social context are thus important for a successful international talent attraction strategy.

Our neighboring country Finland has understood the need for a comprehensive approach. Already in 2017, a strategy was launched with the aim of making Finland an internationally attractive country to work and research in, to live in - and to invest in. The strategy is being put into practice through the Talent Boost program, which is based on collaboration between public authorities, universities and business, with clear services aimed at Finnish companies and international students. Estonia, too, has understood the crucial importance of soft values in retaining talent, with the Re-Invent Yourself program facilitating accompanying persons and families. We are convinced that focused efforts like these would have a positive impact on Sweden's need for highly skilled labor. Much is already in place.

- First, Sweden has a fundamentally liberal and open system for labor immigration. In many respects, Sweden has a strong position and is in the top five in several international rankings of countries' ability to compete for talent. Swedish business culture is appreciated, the standard of living is high with the possibility of free, high-quality education. As bureaucratic processes become less lengthy and costly, many of the practical conditions are in place.

- Second, Sweden is a small language area, which poses a difficulty in this context. But Swedes' knowledge of English is among the best in the EU, and in many Swedish technology companies, English is already the main language. The outside world needs to know this, and companies need to think about what Swedish language requirements are really necessary.

And the soft but crucial issues of language, culture and social belonging can be addressed. Already today, many successful Swedish tech companies are making efforts to make international employees feel more at home, with Swedish language classes during working hours, social activities, help finding accommodation and support for accompanying persons.

Our call to politicians and authorities: learn from Finland and Estonia. Focus efforts together with universities and business. Develop a national strategy and a clear toolbox to stimulate, motivate and facilitate international recruitment. Our call to business: look at those who succeed. Internationally expanding technology companies have understood that access to talent outside Sweden is a success factor and an essential competitive advantage.

Skills supply is a key issue for Sweden. We see that we already have most of what is needed. With focus and a clear strategy, we can create world-class attractiveness.

Lena Miranda, CEO, Linköping Science Park