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Job Market Trends and Their Effects on Companies

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Job Market Trends and Their Effects on Companies

The ongoing COVID-19 pandemic has touched just about every part of the economy, and the jobs market as a whole has gone into alarming freefall, despite the government’s job retention measures.

Where are the jobs going?

The sectors which have struggled most are, by and large, the ones you might expect. Aviation, hospitality, and retail have had to contend with unprecedented slumps in demand, and many businesses have responded by slashing their payrolls.

Even household names like HSBC have announced thousands of redundancies, albeit spread across the globe.

What is the economic outlook like?

According to the Guardian’s redundancy counter, more than 150,000 people have been made redundant, and more than nine million remain furloughed as of the 28th of July. Moreover, the number of employees on company payrolls tumbled during the lockdown period by around 649,000.

Though economic forecasts are not widely lauded for their reliability, the ones that are being focussed on by the mainstream media remain consistently bleak. According to the Office for Budget Responsibility, the body set up to advise the treasury, unemployment levels could skyrocket by the end of the year to levels not seen since the 1980s.

With that said, certain areas of the economy are now enjoying a surge in pent-up demand. Car dealerships are making sales faster than they can restock their forecourts; estate agents find themselves inundated with inquiries. Whether this can be sustained to the end of the year remains

The best-case scenario is a ‘v’-shaped recession – a sharp decline followed by an equally sharp uptick. This is a wildly different recession to the one experienced in 2008. The financial fundamentals which underpin the modern economy remain sound, and thus there’s some reason for cautious optimism – as articulated by the Bank of England’s Andy Haldane in June.

What can be done?

What does all this mean for businesses looking to navigate the post-COVID landscape?

Among the more popular shifts has been toward e-commerce. Retailers have tried to cope with sparse footfall by making the transition to trading online. E-commerce has, in fact, been in rude health through the pandemic, and it’s likely that this shift will outlast the pandemic itself.

Businesses may also wish to anticipate a fall in demand by being more cautious with their investments. Risk assessments and strategizing are set to be more crucial than ever, as is seeking out alternative forms of commercial finance from specialized online lenders.

INTERNATIONAL TRADE SUPPORTS MORE THAN 4.7 MILLION CALIFORNIA JOBS: STUDY

A recently released Business Roundtable study finds that international trade supports 4,710,600 jobs in California, representing one out of every five jobs in the state. 

Trade with Canada and Mexico alone supports 1,470,700 jobs in California, which should be a key factor before members of Congress deciding the fate this year of the United States-Mexico-Canada Agreement (USMCA). Exports from California to Canada and Mexico have increased by 235 percent since the implementation of the North American Free Trade Agreement (NAFTA).

“We stand united to preserve and modernize North American trade, which supports over 12 million jobs and a strong U.S. economy,” says Tom Linebarger, chairman and CEO of Cummins Inc. and chair of the Trade & International Committee for Business Roundtable, whose CEO members lead companies with more than 15 million employees and $7.5 trillion in revenues.

The study – prepared by Trade Partnership Worldwide with the latest-available employment data from 2017 – examines the net impacts of both exports and imports of goods and services on U.S. jobs in all 50 states. It also compared 2017 data to pre-NAFTA data from 1992. The study found that trade-supported jobs in California increased by 88 percent from 1992 (when NAFTA was implemented) to 2017 – nearly three times faster than total employment. 

Find the study here: https://s3.amazonaws.com/brt.org/Trade_and_American_Jobs_2019.pdf

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Study Shows Global Trade Represents 1 out of 5 jobs in California

The Golden State makes news headlines once again boasting its impressive job market. The latest numbers from a study released by Business Roundtable and prepared by Trade Partnership Worldwide confirms a whopping 4,710,600 jobs are supported by global trade in California. The study gathered the most recent information available reflecting employment data from 2017.

“The CEO members of Business Roundtable, who lead companies with more than 15 million employees, strongly support congressional passage of USMCA implementing legislation this year. We stand united to preserve and modernize North American trade, which supports over 12 million jobs and a strong U.S. economy,” said Tom Linebarger, Chairman and CEO of Cummins Inc. and Chair of the Business Roundtable Trade & International Committee.

In addition to the massive employment numbers supported by global trade, California’s export market is also revealing impressive numbers. The same study also revealed goods and services exports made up 11.2 percent of the state’s overall GDP as it exported up to $59.5 billion in goods and services to Mexico and Canada in 2017.

The study in its entirety can be found here.