Business

Research Shows More Job Loss & SMEs May Go Out of Business in the Near Future

Research shows that employment could be affected extensively and several small and medium enterprises (SMEs) may go out of businesses in the near future.

The research by the Ministry of Economic Development and the United Nations Development Program (UNDP) shows that employment and self-owned businesses have extensively affected from time to time due to the outbreak of the novel virus. It stressed that small and medium enterprises (SMEs) have been most affected by the pandemic.

The research states that such an economic downfall has never been experienced by the country in the gone dates and it has abruptly affected sectors ranging from tourism to trades. The very first industry to record a significant downfall of the economy was the tourism industry.

According to the research, employees who have been impacted by the pandemic include employees in the fields of providing basic services, self-employed individuals and employees who work with a small salary. The report highlights that the reasons for job loss increase as the unemployment percentage have been slowly increasing and as the tourism industry does not show a significant hint of revival.

As stated by the research, a total of 2400 employees who worked in the tourism industry prior to the pandemic are now left with no means of income resulting in MVR 30 million loss in total for the employees, monthly. The research also states that half the complaints sent to the jobcentre concerns employees of age 30 and below.

The categories of people whose employers have been affected are youths, employees on probation, third-party resort workers, Bangladeshi workers, freelancers, and community vendors.

The report also shows that although the complaints recorded in the jobcentre are less by women than men, women have been affected to a higher level than men, in redundancy and income loss. The report claims that there are possibilities for women to permanently quit working or the issues currently faced by women might sway them away from the working environment.

When dived into SMEs, the main challenges faced by the businesses include the stoppage of supplies, sales, income, and cash flow. Although the pandemic has posed several challenges, it has also taught so much to society.

While adjusting to the new normal, the country has experienced and exercised technological methods used in business. It has provided the community with virtual opportunities like never before.

Full details are available at the link below:

Source URL: Corporate Maldives

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