Around 2 BILLION people
may lose their jobs in the
next couple of months due to
pandemic
28 May, 2020
More than half of the world’s workforce (nearly two billion people) risk losing their
jobs or moving to part-time work in 2020 as a result of the economic fallout from
coronavirus outbreak.
jobs or moving to part-time work in 2020 as a result of the economic fallout from
coronavirus outbreak.
That’s according to a study by the Boston Consulting Group (BCG), seen by RIA
Novosti.
Novosti.
“It’s hard to overestimate the radical changes in the global workforce due to the
crisis caused by the outbreak of COVID-19,” said the report, citing estimates by
the International Labor Organization that global labor income losses will reach
$3.4 trillion this year.
crisis caused by the outbreak of COVID-19,” said the report, citing estimates by
the International Labor Organization that global labor income losses will reach
$3.4 trillion this year.
In the next two to three months, one out of six people in the world will lose their
jobs, with the unemployment rate to exceed 17 percent, said the authors of the
research.
jobs, with the unemployment rate to exceed 17 percent, said the authors of the
research.
The impact of the crisis on the labor market will vary greatly across industries,
with those most directly affected by quarantine measures to be hit the hardest.
According to BCG analysis, more than 80 percent of all the layoffs in the world are
likely to occur in the non-food retail sector, manufacturing, hotel and restaurant
business, tourism and construction.
with those most directly affected by quarantine measures to be hit the hardest.
According to BCG analysis, more than 80 percent of all the layoffs in the world are
likely to occur in the non-food retail sector, manufacturing, hotel and restaurant
business, tourism and construction.
“We expect that the world’s unemployment rate will start returning to balance by
the end of 2020. However, [the] pandemic has already launched the process of
long-term structural changes – from flexible and remote work schemes to
accelerated automation – and these changes will affect up to 1.5 billion jobs over
the next decade.”
the end of 2020. However, [the] pandemic has already launched the process of
long-term structural changes – from flexible and remote work schemes to
accelerated automation – and these changes will affect up to 1.5 billion jobs over
the next decade.”
BCG estimates that by 2030, automation will put 12 percent of existing jobs at risk,
and about 30 percent of jobs will require completely new skills.
and about 30 percent of jobs will require completely new skills.
The study also indicated that more than 10 percent of the global workforce is
highly likely to work remotely on a permanent basis, while for office workers, the
figure could reach 30 percent.
highly likely to work remotely on a permanent basis, while for office workers, the
figure could reach 30 percent.
BCG said that in order to prevent the collapse of supply on the labor market,
support measures should be provided by governments – from subsidizing salaries
and expanding social protection to financial and tax exemptions and temporary
redistribution of employment.
support measures should be provided by governments – from subsidizing salaries
and expanding social protection to financial and tax exemptions and temporary
redistribution of employment.
“In addition, now it is time to prepare for the after COVID-19 future, introducing in
the next one to three years a common strategy for professional skills, in which retraining will be central,” said the BCG.
the next one to three years a common strategy for professional skills, in which retraining will be central,” said the BCG.
Of course this is politics and National are trying to pretend
they could do better. I can tell you that if they were in
government I would be holding their feet to the fire.
However, the truth is the truth, is the truth
NZ facing largest decline in
GDP in 180 years
Paul Goldsmith MP
27 May, 2020
Estimates from the Reserve Bank today show New Zealand will this year
experience the largest decline in annual GDP in at least 160 years, highlighting the seriousness of the economic crisis we are facing, National’s Finance Spokesperson Paul Goldsmith says.
“The Reserve Bank released its outlook for the economy today in the Financial
Stability Report which shows that New Zealand is set to face the largest economic
shock in 160 years.
“Crucially, it illustrates why New Zealand desperately needs sound and responsible
economic management to save jobs and restore the country’s finances.
“A clear economic plan, a track record of delivery and a competent team is the
only recipe for providing confidence to households and businesses.
“First and foremost, we need to open up the economy again quickly. That’s hard
when the Prime Minister and her deputy can’t agree on when to move to Level 1.
“We also need to get cash to small businesses most affected, to save jobs.
National has already proposed positive policies like a $100,000 GST cash refund
scheme for businesses and a $150,000 instant asset write-off scheme.
“This Government has a track record of wasting money on low value for money
projects - like KiwiBuild, Fees Free or the Provincial Growth Fund - but no record
of delivering a positive plan for rebuilding the economy.
“Today in the House, Finance Minister Grant Robertson admitted that the
Government wasn’t using CBAx, a Treasury tool to assess the effectiveness of
proposals, on any of the billions of dollars currently being spent.
“Only National can be trusted to deliver on the economy.”
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