COVID-19 business survey in Finland: Every third employer company lost half of its turnover

Confederation of Finnish Industries (EK) has published its 3rd corona survey. Turnover has collapsed in Finnish employer companies, especially in the service industries and smaller businesses. More than half of the companies state that they need financial state support. Two-fifths need economic releaf regarding loan or rental payments.

EK’s Director General Jyri Häkämies:

“People’s health is the first priority when solving the COVID crisis. At the same time, Finland must prepare to re-open the society as soon as it can be done safely. This requires extensive testing and rapid tracing of the exposed in order to to prevent the spread of the virus. Business community and economic experts must also be consulted when making the big decisions – it is our joint target to make sure the society and national economy survive the crisis even in the long perspective.”

EK’s third COVID-19 business survey was answered by 1,361 entrepreneurs and business leaders in Finland, all of whom are employers. The response time to the survey was April 14-15.

Business survey results:

  • 36 % of Finnish employer companies report that their turnover is at least half lower than normal in April. The decline in turnover is clearly larger in the service sectors than in the other main industries. The smaller the employer, the more drastic the fall.
  • 44% of employers have made temporary lay-offs (37% in previous survey two weeks ago). With regard to redundancies, the situation is unchanged and only 5% of companies have made them.
  • About half of the companies state that they need financial state support. About two-fifths responded that they need discounts or other economic releaf regarding bank or rental payments. 7% had already received state support, 17% releaf in bank or rental payments and 22% loan repayment-free to cope with the corona crisis.
  • 73% (69% 2 weeks ago) estimate the company will be up and running in three months. 16%o f companies (18 % 2 weeks ago) estimate that the company is in danger of going bankrupt.
  • Restrictive measures imposed to curb the epidemic have hit companies extensively. Restrictions on gatherings and events have had the most negative impact, affecting 73% of companies. Nearly 30% estimate that the harm was decisive. The closure of restaurants has affected more than half of the businesses; for the quarter, the disadvantage has been decisive. The larger the employer, the more severe effects were reported from, for example, restrictions on foreign labor mobility and air and shipping traffic.

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