Connect with us

Reports

Unemployment in Latin America and the Caribbean down slightly in 2018

Published

on

The forecast unemployment rate in Latin America and the Caribbean fell slightly to 7.8 per cent in 2018, compared to 8.1 per cent in 2017, reversing a three-year trend of rising unemployment, the ILO said in its Labour Overview 2018  regional report.

“In a context of slow economic growth, the improvement in the unemployment rate has been modest,” said ILO interim Regional Director Carlos Rodriguez, adding that there is a need “to increase the speed at which we generate more and better jobs”. He pointed out that the latest figures, which are based on data collected in the first nine months of 2018, mean that some 25 million women and men in the region are unemployed.

ILO Regional Economist Hugo Ñopo warned that youth unemployment in the region was at alarming levels. One in five of those aged 14-25 were looking for but failing to find work.

The report also highlights the need to step up efforts to reduce gender inequality in the world of work. Women’s labour force participation rate remained constant in the first nine months of 2018, at 50.3 per cent, which is 20 percentage points below that for men. In the same period the unemployment rate for women reached 10 per cent, compared with 7.3 per cent for men.

While the average unemployment rate for the region fell, at national level it increased in 10 countries and fell in seven. The decrease in the regional rate was largely driven by an improvement in Brazil – home to 40 per cent of the region’s economically active population – which saw its unemployment rate fall by 0.6 percentage points.

Real minimum wages increased both regionally and in 12 of the 16 countries that provided data.

The report says one million jobs could be created if an International Monetary Fund forecast for 2.2 per cent growth in 2019 is realized. But it also warns that future trends in the region remain uncertain, amid labour market vulnerability to political, trade and investment fluctuations.

Continue Reading
Comments

Reports

COVID-19 crisis highlights widening regional disparities in healthcare and the economy

Published

on

The impact of the COVID-19 crisis on people and economies has highlighted widening regional disparities in access to healthcare and economic growth and persistent disparities in digitalisation over the past decade, according to a new OECD report.

Regions and Cities at a Glance 2020 says that at the onset of the pandemic, some regions were less well prepared to face the health emergency. With 10 beds for every 1000 inhabitants, regions close to metropolitan areas have almost twice as many beds as remote regions. Over the last decades, most regions in OECD countries have seen a significant reduction in the number of hospital beds available per inhabitant, with an average decline of 6% since 2000 and of 22% in remote areas.

The health impact of COVID-19 has been particularly hard in some areas within countries. For example, in some regions of Colombia, Italy and Spain, the number of deaths between February and June 2020 was at least 50% higher than the average over the same period in the 2 previous years.

Morbidity rates that make some places more vulnerable to health crises than others also vary widely. In some regions in Mexico, Chile and the United States, close to 40% or more of the population is obese, posing a higher risk in terms of fatal diseases. For example, due to higher obesity levels, in Mississippi the average likelihood to suffer severe symptoms if infected with COVID-19 is roughly 23% higher than in Colorado.

People living in large cities and capitals were also more able to quickly shift to remote working. Many rural areas still suffer from a lack of access to high-speed broadband, a lower share of jobs amenable to remote working and a less well-educated workforce. One in three households in rural areas does not have access to high-speed broadband, on average. Overall, only 7 out of 26 countries have succeeded in ensuring access to high-speed connection to more than 80% of households in rural regions. And in some regions in Italy, Portugal and Turkey, 25% or more of the population does not use the Internet or does not have a computer.

Some regions were also struggling economically before the crisis. After a period of decline in the early 2000s, gaps in GDP per capita across small regions in the OECD area have increased, reflecting a long-standing process of concentration of population and economic activities in metropolitan areas.

The evolution of regional economic disparities remains very heterogeneous across countries. Contrary to the OECD-wide trend, one-half of OECD countries experienced an increase in the gap between their richest and poorest regions. Trends in regional productivity follow similar patterns. Since 2008, only one-third of OECD countries have experienced an increase in productivity in all regions.

With more than 100 indicators, Regions and Cities at a Glance 2020 combines official statistics with new, modelled indicators based on less conventional data sources, analysing trends in health, well-being, economic growth, employment and the environment, as well as regions and cities’ preparedness to face global crises and adapt to megatrends.

Continue Reading

Reports

Cash flow the biggest problem facing business during COVID-19 crisis

Published

on

A new report  on the impact of the COVID-19 pandemic  on businesses shows that their greatest challenges have been insufficient cash flow to maintain staff and operations, supplier disruptions and access to raw materials.

With businesses already undergoing significant competitive pressure prior to the crisis, government restrictions, health challenges and the economic fall-out brought by COVID-19 further set back many enterprises.

Interrupted cash flow was the greatest problem, the survey found. More than 85 per cent reported the pandemic had a high or medium financial impact on their operations. Only a third said they had sufficient funding for recovery. Micro and small enterprises (those with 99 employees or fewer) were worst affected.

The survey, carried out by Employers and Business Membership Organizations (EBMOs), involved more than 4,500 enterprises in 45 countries worldwide. EBMOs gathered data from their enterprise members between March and June 2020. The businesses were asked about operational continuity, financial health, and their workforce.

At that time, 78 per cent of those surveyed reported that they had changed their operations to protect them from COVID-19, but three-quarters were able to continue operating in some form despite measures arising from government restrictions. Eighty-five per cent had already implemented measures to protect staff from the virus.

Nearly 80 per cent said they planned to retain their staff – larger companies were more likely to say this. However, around a quarter reported that they anticipated losing more than 40 per cent of their staff.

Looking into the future, preparing for unforeseen circumstances and mitigating risks associated with a disruption of business operations is needed. Fewer than half the enterprises surveyed had a business continuity plan (BCP) when the pandemic hit, with micro and small businesses the least likely to have made such preparations. Additionally, only 26 per cent of the enterprises who responded said they were fully insured and 54 per cent had no coverage at all. Medium-sized enterprises, (those with 100 to 250 employees), were most likely to have full or partial coverage.

Strengthening government support measures for enterprises are also vital for their recovery. Four out of ten enterprises said they had no funding to support business recovery while two-thirds said funding was insufficient. Of the sectors analysed, the tourism and hospitality sector, followed by retail and sales, were most likely to report funding issues.

The report production was facilitated by EBMOs who collected and shared the survey data with the Bureau for Employers’ Activities  (ACT/EMP) at the International Labour Organization. ACT/EMP is a specialized unit within the ILO Secretariat that maintains close and direct relations with employers’ constituents.

Continue Reading

Reports

Lithuania: COVID-19 crisis reinforces the need for reforms to drive growth and reduce inequality

Published

on

Effective containment measures, a well-functioning health system and swift public support to firms and households have helped Lithuania to weather the COVID-19 crisis to date. That said, the pandemic still carries significant economic risks, and the recent upsurge in infections is very concerning. Once a recovery is under way, Lithuania should aim to reform public companies, strengthen public finances, and ensure that growth benefits all people and regions, according to a new OECD report. 

The OECD’s latest Economic Survey of Lithuania says that prior to COVID-19, good economic management and an investment-friendly business climate were helping to lift average Lithuanian incomes closer to advanced country levels. While the recession provoked by the virus has been milder than elsewhere – with GDP projected to drop by 2% in 2020 before rebounding by 2.7% in 2021 – Lithuania’s small and open economy will be vulnerable to any prolonged disruption to world trade. Increasing public investment and improving governance at state-owned enterprises could help lift growth and productivity. Other reforms should focus on improving the effectiveness of spending and taxation. Over the longer term, Lithuania should establish a clear debt reduction path and a long-term debt target.

“Lithuania’s sound economic management of recent years, and its swift response to both the health and economic aspects of the pandemic, are helping the country to weather the COVID-19 crisis,” said OECD Secretary-General Angel Gurría. “It is now key to build on these achievements and restart the reform engine to ensure robust, sustainable and inclusive growth for the future.”

The pandemic has exposed high levels of income inequality in Lithuania, where relative poverty is high among the unemployed, the less educated, single parents and older people due to a tax-benefit system that is insufficiently redistributive. The Survey recommends Lithuania to continue providing temporary support to people and businesses hit by COVID-19, as well as to increase regular social support while retaining incentives to work.

In terms of support to the economy, the Survey notes that while Lithuania’s government spending has increased considerably over the past two years, it remains below the OECD average. Public investment also remains low. Given the importance of modernising infrastructure and stimulating crisis-hit demand, the Survey recommends maintaining or increasing current levels of investment and improving investment quality by carrying out rigorous cost-benefit analysis for individual projects. Increasing investment in rural areas, and giving local government more say in tax policy and spending, could help reduce regional disparities and promote inclusive growth.

The Survey also recommends phasing out environmentally damaging fossil fuel subsidies and increasing environmental taxation, which would benefit public finances while helping the shift to a lower-carbon economy.

Continue Reading

Publications

Latest

Tech News1 hour ago

Top 3 Effective Strategies for Using Push Notifications

A lot of businesses are actively using push marketing to raise their sales, attract more customers, and build a strong...

Americas2 hours ago

“Living On Mountains”: Antecedents of a Dignified and Secure World Order

“One must become accustomed to living on mountains, to seeing the wretched ephemeral chatter of politics and national egotism beneath...

Middle East4 hours ago

Assassination of top Iranian Nuclear Scientist: A big Tragedy

On the sad incident of the assassination of a top Iranian nuclear scientist, the UN spokesman said, “We urge restraint...

East Asia6 hours ago

The complex puzzle of Canberra-Beijing ties, as diplomacy takes a back seat

Australia and China seems to be engaged in a repulsive tariff war targeting each other’s goods. Canberra is struggling to...

Europe8 hours ago

Greece and UAE’s Strategic Cooperation: A New Regional Equilibrium in the Making

The agreement on Joint Cooperation in Foreign Policy and Defence between Greece and the United Arab Emirates (UAE) is a...

Reports10 hours ago

COVID-19 crisis highlights widening regional disparities in healthcare and the economy

The impact of the COVID-19 crisis on people and economies has highlighted widening regional disparities in access to healthcare and...

Economy12 hours ago

The Question Of Prosperity

Galloping economic woes, prejudice, injustice, poverty, low literacy rate, gender disparity and women rights, deteriorating health system, corruption, nepotism, terrorism,...

Trending