CEH – 3666 companies less, 46,545 unemployed more

Croatia paid the price of the coronavirus epidemic with a loss of 479 companies and 'gain' of 21,257 unemployed. These are the figures calculated by Bisnode for the number of companies based on data from the Court and Crafts Register (the difference between newly established and closed business entities) and data from the Croatian Employment Service for the number of unemployed. At first glance, this statistic may only serve as a temporary consolation for the ruling party and their pre-election spin. In reality, Croatia would have had almost 3,700 more companies and nearly 47,000 fewer unemployed in these two months had it followed last year's trend.

Namely, the spring months, with Easter marking the beginning of the tourist season, also signify the seasonal awakening of the economy and employment. In March and April 2019, 5,912 companies and crafts were established in Croatia, while 2,725 were closed. This year, in those two months, there were 2,574 established and 3,053 closed. Thus, instead of last year's increase of 3,187 business entities, this year we have a decrease of 479, which is a difference of 3,666 companies and crafts.

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3666 companies less, 46,545 unemployed more

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The situation is similar with the number of unemployed. In two months (actually in a month and a half, since the lockdown began), the balance is around 25,000 more unemployed. However, according to last year's trend of spring unemployment decline caused by economic growth and seasonal awakening, Croatia would have entered May with 115,000 unemployed, but now there are more than 159,000, which is a deficit of nearly 46,545 jobs.

April was particularly dramatic, as it lost 76 crafts, 139 limited liability companies, and another 69 sole proprietorships. Nevertheless, some businesses were also opened. For example, 357 crafts were established, but that is only one-fifth of the 1,629 new crafts established in April 2019. It should be noted that the opening of retail, hospitality, and service activities has reduced the decline in the number of companies and the rise in unemployment, but this will still remain far from last year's figures.

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These are the true dimensions of the consequences of the coronavirus, which so far have only fragmented confirmation in numbers. The first opportunity for further clarification of the extent of the crisis will be the announcement from the State Bureau of Statistics regarding salaries paid for March. Representatives of the unions in the state and public sector should certainly look at this data next Tuesday, as they do not agree to postpone salary increases and do not want to give up on bonuses and Christmas payments.

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