One thirds of entities cut jobs as pandemic hits economy
1 долоо хоног, 2 өдөр өмнө
- More than 20,000 companies are on the brink of collapse
- 30 percent of the companies had decreased their operational costs
- By the result of Labour force survey of the first quarter of 2020, unemployment rate of Mongolia reached 8.1 percent
According to a survey conducted by the Mongolian National Chamber of Commerce and Industry (MNCCI), over 33 percent of enterprises cut jobs amid the COVID-19 outbreak and the restriction to prevent its infection. If the Government can not take appropriate measures immediately, roughly 260,000 people will their jobs and more than 20,000 companies are on the brink of collapse. The survey included over 1,500 entities; of these, 65 percent of them had a decrease in revenue, 42 percent could not continue normal activity, and 30 percent of the companies had decreased their operational costs. By the result of Labour force survey of the first quarter of 2020, unemployment rate of Mongolia reached 8.1 percent. At the end of February, the number of registered job seekers reached 35.6 thousand, of which, 20,600 (57.9 percent) were registered as unemployed and the remaining 15,000 (42.1 percent) were employed but looking for a new job. Moreover, budget deficit remained high during the time in which, the country faces major challenges. Some economists are not satisfied with the Governments measures, saying that the lack of effectiveness may lead to economic crisis in the long term. About 60 percent of the entities that have involved in the survey said, “financial support is essential to save jobs”, while the other 50 percent agreed that delaying the due of social insurance fee is important.