Governments across the world have collectively injected more than $10tn in fiscal stimulus since the onset of the Covid-19 pandemic. Despite this stimulus, unemployment and business closures have been at an all time high. Governments, workers and employers need to work together to draft an economic recovery plan that is both sustainable and effective in the long run.
Colin Williams, professor of public policy at the University of Sheffield, shared an article on the forecasts made by the International Labour Organization (ILO) on the tough road ahead for the global job market. The ILO noted that the Covid-19 pandemic has affected the job market more than initially predicted.
The article noted that working hours fell by 14% in the second quarter of 2020 equivalent to the loss of approximately 400 million jobs. A sustainable economic recovery plan is necessary to ensure that the pandemic does not increase the inequalities among the people.
Hard times forecast for global job recovery in 2020, warns UN labour agency chief #informaleconomy #COVIDー19 #Covid_19 https://t.co/SzVw4gyCFy
— Colin Williams (@Colin_CWilliams) July 1, 2020
Rob Gill, managing director at Altura Mortgage Finance, shared an article on forecasts made by the Bank of England’s chief economist on a possible V-shaped recovery for the UK although a prolonged period of unemployment is expected.
The rebound is attributed to the return in consumer confidence as lockdowns are gradually lifted. The article also notes that the UK GDP is expected to contract by 20% down from the previously estimated 27%.
The UK economy is on course for a V-shaped recovery from the #coronavirus crisis though the risk of a prolonged period of unemployment remains, according to the Bank of England's chief economist https://t.co/b6cyrRMjJm
— SkyNews (@SkyNews) July 1, 2020
Prof. Steve Hanke
Prof. Steve Hanke, an economist at Johns Hopkins University, shared an article on the water crisis in Venezuela. He noted that the destructive economic adopted by President Nicolas Maduro’s government have led to the increase in inflation and forced citizens to adopt drastic measures to gain access to water.
The article noted that 86% of Venezuelans do not have access to reliable water service including 11% who do not have any water supply. The situation has led many people to dig their own wells to access water.
The #Maduro regime's destructive policies have never been more evident. In the midst of a pandemic, Venezuelan citizens are forced to hand dig wells for water. With #inflation at 2540%/yr by my measure, the wheels are coming off in #Venezuela.https://t.co/3sqfPpSBpN
— Prof. Steve Hanke (@steve_hanke) July 1, 2020
Howard Archer, chief economic advisor to EY ITEM Club, shared an article on the jobs cuts announced by companies in the UK including retail and aviation. More than 12,000 people are expected to lose their jobs due to the announced made by the companies.
The job cuts are being announced to save costs as the government’s furlough scheme started to be pared back from August and end in October. The article noted that the government will need to announce more stimulus to deal with the impact of the pandemic.
Fuels concern over the #UK #labour market & the potential impact on recovery prospects as the jobs furlough scheme starts to be pared back in August & then end in October – BBC News – UK firms slash 11,000 #jobs in two days in retail and aviation https://t.co/SshEJ3h5F1
— Howard Archer (@HowardArcherUK) July 1, 2020