Covid-19 Labor Market Monitoring
Swedish measures to mitigate the spread of the Covid-19 virus have been less restrictive than those used in most other countries. Despite of this, we document a massive con- traction of the Swedish labor market with an emphasis on hotels, restaurants and retail sectors. Early policy responses have primarily been in the form of short-term financial aid to firms and policies aiming at preserving permanent employment contracts. A very generous short-time work scheme covers 9 percent of the total labor force. Policy measures are expensive, but sound fiscal finances makes them sustainable in the short to medium run.
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Posted by Anna Sjögren,
Uppsala University and IFAU