The highest alert numbers ever now indicate the seriousness of the economic crisis in the wake of the Corona virus. It is not only the hotel and restaurant industry that notify but also transport and trade. Trade accounts for 10 percent of Sweden's GDP, while the hotel and restaurant industry accounts for nearly 3 percent. It is now clear that the crisis does not stop there. It is naïve to believe that the crisis is not looking down even in industry and demand for cars, refrigerators and freezers and the housing market.
Given that the Public Health Authority has already flagged that further restrictions in our way of life are likely and can come at short notice, there is still no light in the tunnel.
The weak in the labor market suffer the worst
During the financial crisis, we learned that it is what is systemically important that banks and large companies must be saved first. This is also where the gunfire first burned off this time as well. But the progress of the Corona virus does not just hit them, it is clear that it is the smaller companies and the most vulnerable in the labor market that are taking the first blow.
It is younger and foreign-born who work in low-skilled occupations with short-term employment who must first leave.
"Brutal exclusion"
The hairdresser at the mall says desperately that sales have dropped by 90 percent. The staff work at the café themselves - the other hourly workers have had to go. In business it's fate. It is not possible to serve an extra-late tomorrow, cut a little extra in a month and thus recover the money you lost today.
That's why the knockout is so brutal. But despite the dramatic warning numbers, the number of people at risk of losing their jobs or having already lost their hours is probably far higher. A company with five or fewer employees does not need to be notified. Therefore, they are not visible in the statistics. Neither the hourly and short-term employees' lost hours and hops are visible in the Swedish Employment Service's statistics on notice and unemployment. The Employment Service only says that the dropout is "significant". Therefore, expect significantly higher figures in the future.
So far, the Government has, among other things, offered government loan guarantees and assistance to the landlord who lowers the rent. Finance Minister Magdalena Andersson has flagged for educational efforts and other support for those with unsecured employment is underway. This is needed to ensure that the crisis does not further damage than necessary.