Corona survey: 40% of Finland’s employer companies prepared for layoffs

The Confederation of Finnish Industries EK has published results of a corporate survey on COVIT-19 business effects.

The corona epidemic strikes Finnish employer companies with force. Companies of all sizes, sectors and regions are affected. Nearly 90 percent see the disadvantages of the COVIT-19 in their business. The Finnish state is expected to provide the support, response and flexibility needed in times of crisis.

EK will launch regular COVIT-19 corporate surveys. More than 780 entrepreneurs and business executives responded to this first survey on March 12-16.

Note that the survey results reflect the situation before the companies knew about the emergency conditions declared by the Finnish government. Every passing day has further aggravated the situation for companies.

Business survey results in summary:

• 40% of companies estimate their position to be rather or very much weakened by the COVIT-19. 87% expect it to have at least some negative impact on the company’s operations and financial position.
• 40% consider temporary layoffs or  permanent redundancies as a result of coronavirus to be likely. 43% consider them unlikely.
• More than half of companies have taken at least some precautionary measures to minimize disruption caused by coronavirus. The bigger the company, the more likely it is to be prepared for the situation. About half of micro-enterprises with fewer than 10 employees have taken preparedness measures, virtually all of large enterprises.
• Almost 90% of companies consider support measures of the Finnish state quite or very necessary because of the corona. The respondents were quite unanimous regardless of their size.
• The companies describe the situation as serious. Already ahead of the acute phase of the COVIT-19 crisis, demand stopped for the service companies whereas industrial companies suffered from supply chain disruptions. Many companies face financial difficulties.
• Tax authorities, financiers and insurance companies are expected to come up with utmost flexibility. Support from the Finnish state is needed in order for the companies to pay salaries. Reductions in employer contributions and sick pay costs are called for, as well. The views were critical on the authorities’ insufficient guidance regarding the COVIT-19 situation.