One in four households financially affected by the corona crisis – NRK Norway – Summary of news from different parts of the country

– For my part, it is mainly about finances. I have two children, I have a house. Can you pay the bills?

Stian Holt works as a chef aboard Color Fantasy. Infection control restrictions and the authority’s travel advice have hit the tourism and service industry hard. From March to June he was fired from his job.

In early October, Holt was informed that he would be fired again. He fears that it may be a long time before he can return to work.

– I have seen April / May as an opportunity to return considering there are very few guests on board.

At his home in Porsgrunn, he has a house and two children. Although you are currently being paid for your overhead and have a grace period on your mortgage, you are concerned that you will have to live on a lower income due to eventually being laid off.

There have been many waking nights in which the greatest fear is having to find another place to live.

– To survive you must always be able to do it, but do you have to move? Do you have to resign? These are the things that scare me and that scare me.

Commentary: the crisis in the crown could further widen the differences

One in four financially affected by corona

– We see that 25 percent of households have been affected in one way or another by the corona crisis, says researcher Christian Poppe from the Norwegian Institute for Consumer Research (Sifo) / OsloMet to NRK.

A new report from Sifo shows that out of 2.4 million Norwegian households, 430,000 of them were still financially affected by the crown crisis in June.

Fifteen percent of all households, about 360,000, had received lower incomes in June than before the crown crisis, as a result of lost business income, layoffs or layoffs.

These are especially low-income groups, people with precarious employment contracts, low education and the self-employed.

– The financial consequences here are quite large, we see increases in the proportion that have payment problems and we see that those who have been affected by the crown have the highest probability of having payment problems, says Poppe.

The report also shows that 15 percent of all households, around 360,000 Norwegian households, had no savings at the end of June. This is a 9 percent increase in May.

Read also: Heidi lost her job due to the crown: – Tax relief helps little

Fear of a new lower class

– What we see in the figures is a tendency for some groups to worsen, which becomes indicators of major problems. What the future will bring especially depends on people getting back to work, Poppe says.

In the long term, what he is most concerned about is the performance of the welfare state.

– It is clear that the measures that the welfare state has taken against the crown are not sustainable in the long term. Then there must be austerity. Crown measurements will be reduced, the question is how early and if they arrive too early.

– The second is that perhaps the welfare state will have to reduce other benefits and perhaps ordinary benefits. In that case, it means that those who have had it before will find it even more difficult in the future.

– Are you afraid we may have a new and larger underclass in Norway?

– Yes, it can quickly become a result of this. That there are some who do not get out of trouble. If you live on two-thirds of your income for two months, you will spend time recovering.

– Are we going to have more poor people in this country?

– It can quickly become a result of it. We are used to having very low poverty. We see that poverty grew before the crisis of the crown, and it is clear that this is a type of redistribution that will hit someone very hard. So it may well be that what we don’t like to talk about, poverty, becomes more visible, or eventually becomes a somewhat larger group.

Worried about lost jobs

Erina Bryn Kjær, Color Line chief shop steward for the Norwegian Seafarers Association, is concerned about future developments.

– As the situation is now, it is a serious situation. Color Line has already flagged around 300 layoffs that will occur in the near future. That is why I am very concerned that jobs will be lost.

He asserts that many are particularly concerned about being unemployed in a time and market characterized by high unemployment.

– It’s hard to have a steady job and a fixed income, and then suddenly it disappears. With that uncertainty both economically and of what the future will bring. I do not please anyone in that uncertainty.

Kjær hopes the company can get back to what was previously normal, but fears it may take longer than expected in March.

– It is important to keep it for so long. Then we will see what comes with vaccines and what the future may bring. Unfortunately, we don’t get away with layoffs and layoffs.

You can combine unemployment benefits and education.

In Dagsrevyen, Research and Higher Education Minister Henrik Asheim talks about the possibility of using break time for education.

– There are still many who are not sure of their future. What we have done is introduce measures to take advantage of layoff time to, for example, take skills education, says Asheim.

It says that education and work are closely linked. Over time, he figures that the jobs will come back and then Asheim thinks it will be important with education to be able to apply for new jobs.

– It doesn’t have to be a very long education, it can be to get a diploma, says Asheim.

After the New Year, the unemployment benefit rate returns to the normal level of 60 percent. During the crown crisis, the rate has been 80 percent.

– We do this because there will be fewer unemployment benefits and because it is necessary to shift resources to those who are furthest from working life, says Asheim.