The number of company bankruptcies will increase by 20% by early 2024

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The number of businesses closed in the social and healthcare sectors increased by nearly 60% year-on-year.

A man in uniform stands in a parking lot on a summer day, looking at a blue and orange truck with trees in the background. — The number of new companies in the transportation sector has more than tripled since 2023 (Kitee file photo from last month). Photo: Ari Haimakainen / Yle

The number of companies that closed in the first quarter of 2024 increased by 20.5% compared with the same period last year, Statistics Finland said on Thursday.

From January to March this year, a total of 12,691 businesses closed down.

The largest number of closures was in the health and social services sector, which surged 57.6% compared to the first quarter of 2023.

An unusual era of change

On the other hand, the number of newly opened businesses increased slightly to 12,852, up 4.5% from the previous year.

This suggests that this is an unusual time of change. Since 2013, the number of new companies founded and closed has reached its highest level in comparable statistical history.

In the construction sector, business openings fell by about 20 per cent, while closures rose by about 20 per cent. The same was true for the arts, entertainment and recreation sectors.

The number of new companies in the transportation and warehousing industry grew fastest, more than tripling from the beginning of 2023.

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