The short-term government support that Sweden introduced in connection with the pandemic outbreak has saved up to 40,000 jobs. The support was most effective at the beginning. This is shown by an evaluation by the agency Tillväxtanalys, reports Sveriges Radio Ekot.

The support should have been phased out already last year, says analyst Magnus Gustafsson. 

”"When we have a significant economic upswing, the support reduces mobility in the labor market. So there are companies that want to hire but it becomes more difficult for them to find the personnel they want and this can have a slowing effect on employment," he tells Ekot.

In 2020, a total of 75,000 companies received short-term support and a total of SEK 32 billion was paid out. 

Sweden was not alone in easing rules around layoffs, many countries in Europe used similar systems. Sweden was not the first to introduce this measure either. 

Source: FinWire