AThe number of bankruptcies among Swedish companies has continued to reach record levels during the month of March and the number of new starts has decreased. According to recent figures from UC, notices of bankruptcy also increased by almost 40 percent in the first quarter of this year, compared to the same period last year.
Bankruptcies increased in 7 of the 10 largest industries included in UC's statistics, by a total of 36 percent, compared to March last year. The number of new starts in Sweden also decreased by 17 percent.
The industries that were hit hardest and had the highest increase in bankruptcies from last year were transportation (109 percent), service companies including hair and beauty care and body care (88 percent) and information and communication including various forms of IT consulting services (73 percent).
On the contrary, bankruptcies in trade decreased by 11 percent in retail trade and 5 percent in wholesale trade.
The crisis in the construction sector can affect unemployment in general
At the same time, UC's statistics show that notices of dismissal due to bankruptcies have increased by almost 40 percent.
– The long-term high bankruptcy rates in several industries, such as the construction industry and the hotel and restaurant industry, are having clear consequences on unemployment statistics as layoffs in these industries increase. So far, most analysts are predicting an unemployment level of just over 8 percent, which is a tough situation but not catastrophic compared to previous recessions. The big challenge will probably not be to slow down this figure in the future, bankruptcies will probably decrease by the summer when many believe that the market is turning around, but to get unemployment to return to the same levels as before the recession. The interest rate effects will be delayed and new starts have been pointing downward since 2023, according to our statistics. It will take time for both the market and households to regain capital and confidence in the future to contribute to growth. In industries such as the hotel and restaurant industry, we can hope for a faster recovery as many workers are hired on temporary contracts, which means they are more flexible in adapting to the current market situation, says Gabriella Göransson, CEO of UC AB.
To see the bankruptcy trend at county and municipal level as well as industries, visit https://www.uc.se/konkursstatistik/
According to the press release.
