The purpose of this article is to investigate emerging areas of precarious employment in Sweden. Based on the literature on dimensions of precariousness and neoliberalism, this article will begin with an analysis of the transitioning Swedish welfare state and the contextual environment of precarious employment in Sweden. This will serve as a point of departure for the development of an occupational classification scheme including measures of income and employment security. In an empirical analysis, the occupational classification will be applied to a population-based register material including two birth cohorts of employed Swedish residents aged 28–33, with a registered income. The development of income and employment security will be described and discussed. By applying this newly developed measure of precarious employment, this article will provide a platform for future theoretical and empirical research on precarious employment in a transitioning welfare state.