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The proportion of companies reporting layoffs rises from nine to twelve percent, after a month of infections flourishing and a new crown tightening in Norway.
Chief Economist Øystein Dørum at NHO.
Bendiksby, Terje / NTB scanpix
Published:
This is shown in NHO’s recent September survey of several thousand members, which was released on Friday.
– At first it got worse. Then it got better. Now it’s getting worse again, says chief economist Øystein Dørum at NHO to E24.
Half a year after the corona pandemic turned Norway upside down, several hoped that the business community would soon see the light at the end of the tunnel.
Clear increase in layoffs
But the latest NHO survey suggests they should be patient. Several things have gotten worse since the previous business survey in August, the figures show:
- 12 percent of companies report having made layoffs, a sharp increase from 9 percent in August.
- 50 percent of companies report lower demand, an increase from 46 percent a month ago.
- Like many claim that turnover has been reduced, an increase of five percentage points. The proportion of companies affected by serious sales failures (50 percent drop in sales or more) is also increasing slightly, from eight to nine percent.
MORE LAYOUTS: 12 percent of companies report layoffs in the latest survey, up from nine percent in the previous round.
Source: NHO Member Survey for September.
– As feared
– These results are the feared, says Dørum, and elaborates:
– There has always been a close relationship between the development of the infection, the measures implemented by the authorities to keep the infection low, and activity in the economy. Norway was hit first when China closed and then when it closed in March. Since then, the activity has improved in line with the reopening of the company.
– And then isn’t it so surprising that companies have gotten worse again now?
– No, not when infection rates have recovered and the government has once again tightened measures. When you have to close your beer service at midnight, it clearly leads to lower turnover and fewer working hours, notes the chief economist.
Not everything looks worse. The proportion of companies with liquidity problems remains stable in the new survey.
The proportion fearing bankruptcy is also the remaining 12%.
– Time is our enemy
Dørum believes that flat development is, however, scarier than it sounds:
– Time is our enemy when we are in such a situation, says the chief economist:
– Businesses tolerate the specter of bankruptcy hanging over them for a while. But the longer it takes, the more likely they will succumb again. So I’m more concerned that one in ten feared bankruptcy now than that one in three companies feared bankruptcy in March.
Tourism, aviation and transportation, tourism has experienced the greatest loss of turnover, according to NHO surveys:
Loss of turnover in various industries.
Source: NHO member survey
On Monday, Finance Minister Jan Tore Sanner (H) will present news about increased support for particularly vulnerable industries, such as the tourism and events industry.
Travel operators inform E24 about a total stagnation in the market and that they have had to lay off all employees.
Dørum says the government can hardly maintain equally good support schemes for actors over time.
– At the same time, many companies still depend on support to survive, he says.
