Connect with us

Economy

2 Million Jobless Motorbike Drivers Show Covid's Toll on Indonesia's Gig Economy – BNN

Published

 on


(Bloomberg) — Follow Bloomberg on LINE messenger for all the business news and analysis you need.

Millions of sidelined motorcycle taxi drivers in Indonesia are bracing for a long recovery as the country’s coronavirus outbreak shows no signs of abating.

The taxis — known locally as “ojek” — are a fixture in congested Indonesian cities where transport infrastructure is limited and gridlock is among the worst in the world. They’re also the inspiration for Indonesia’s most valuable startup, the ride-hailing and food-delivery app Gojek.

The ojek drivers are a bellwether for Southeast Asia’s largest economy, as they facilitate consumer spending and business activity. Roughly 40% of the country’s estimated 5 million ojek drivers have lost their jobs in the pandemic. President Joko Widodo has been hard-pressed to tame unemployment and pull the economy out of recession, while keeping a lid on Covid cases that have topped 700,000.

“We pray to God every day that the situation can recover as soon as possible,” said Igun Wicaksono, who heads the industry association Garda in Jakarta. “These are very basic jobs we have.”

Spikes in Covid-19 infections and deaths have ushered in a raft of stricter social-distancing measures this month, threatening to undercut a gradual improvement in ridership since the worst of the crisis. Amid gaps in social-safety nets, drivers are resorting to lower-paying gigs. Wicaksono estimates that drivers are seeing only about half their prior business.

The government is aiming for 5% economic growth next year, hoping that stimulus spending and an aggressive vaccination plan can boost private consumption. The economy is expected to shrink as much as 2.2% this year, Indonesia’s first annual contraction in more than two decades.

Amid gaps in social-safety nets, drivers are resorting to lower-paying gigs that may not be enough to pay down loans they took for their motorbikes, according to Joanna Octavia, a doctoral researcher at the U.K.-based Warwick Institute for Employment Research.

“For an ojek driver, their most important asset is their motorcycle. It’s the way to get around and the way they generate an income,” she said. “If that was taken away, it would be very difficult for them to start all over again.”

That could have broader implications for the economy, where the ranks of the jobless are growing. The sector has been crucial in absorbing low-skilled labor, Octavia said, since all drivers need is a license and a bike to earn money.

Aid Gaps

Ohci Heavyani, 35, used to earn about 300,000 rupiah ($21.18) a day as a driver for Gojek. A mother of two and her family’s breadwinner, she works full time and her pay is well above Jakarta’s minimum wage.

Heavyani currently makes about seven trips a day, mostly to deliver food or parcels. That’s up from almost zero at the height of Indonesia’s lockdown, but still a fraction of the 20 daily trips she used to make.

With only a one-time assistance of food and cash vouchers from Gojek, Heavyani has had to slash expenses and borrow money from friends and family to make ends meet.

READ MORE: Covid Has Wiped Out t he Economic Dreams of an Asian Generation

“A lot of my driver friends are selling food or stuff to generate other income,” she said. “They usually use the government social-assistance money as capital, but I don’t qualify for that.”

©2020 Bloomberg L.P.

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Biden's rescue plan will give U.S. economy significant boost: Reuters poll – The Guardian

Published

 on


By Indradip Ghosh and Richa Rebello

BENGALURU (Reuters) – U.S. President Joe Biden’s proposed fiscal package will boost the coronavirus-hit economy significantly, according to a majority of economists in a Reuters poll, and they expect it to return to its pre-COVID-19 size within a year.

Biden has outlined a $1.9 trillion stimulus package proposal to jump-start the world’s largest economy, which has been at the epicenter of the COVID-19 pandemic having lost over 400,000 lives, fueling optimism and sending Wall Street stocks to record highs on Thursday.

Hopes for an upswing in U.S. economic growth, helped by the huge stimulus plan, was reflected in the Jan. 19-22 Reuters poll of more 100 economists.

In response to an additional question, over 90%, or 42 of 46 economists, said the planned fiscal stimulus would boost the economy significantly.

“There are crosswinds to begin 2021 as fiscal stimulus helps to offset the virus and targeted lockdowns. The vaccine rollout will neutralize the latter over the course of the year,” said Michelle Meyer, U.S. economist at Bank of America Securities.

“And upside risks to our…growth forecast are building if the Democrat-controlled government can pass additional stimulus. The high level of virus cases is extremely disheartening but the more that the virus weighs on growth, the more likely that stimulus will be passed.”

For a Reuters poll graphic on the U.S. economic outlook:

https://fingfx.thomsonreuters.com/gfx/polling/oakveynqovr/Reuters%20Poll%20-%20U.S.%20economy%20outlook.png

The U.S. economy, which recovered at an annualized pace of 33.4% in the third quarter last year from a record slump of 31.4% in the second, grew 4.4% in the final three months of the year, the poll suggested.

Growth was expected to slow to 2.3% in the current quarter – marking the weakest prediction for the period since a poll in February 2020 – amid renewed restrictions.

But it was then expected to accelerate to 4.3%, 5.1%, 4.0% in the subsequent three quarters, a solid upgrade from 3.8%, 3.9% and 3.4% predicted for those periods last month.

On an annual basis, the economy – after likely contracting 3.5% last year – was expected to grow 4.0% this year and 3.3% in 2022, an upgrade from last month.

For a graphic on Reuters Poll – U.S. economy and Fed monetary policy – January 2021:

https://fingfx.thomsonreuters.com/gfx/polling/azgpoljbkvd/U.S.%20economy.PNG

Nearly 90%, or 49 of 56 economists, who expressed a view said that the U.S. economy would reach its pre-COVID-19 levels within a year, including 16 who expected it to do so within six months.

“Even without the stimulus package, we had already thought the economy would get back to pre-COVID levels by the middle of this year,” said Jacob Oubina, senior U.S. economist at RBC Capital Markets.

“With the new stimulus package there will be more direct money in people’s pockets, easily boosting the economy, provided a vaccine rollout progresses in a constructive manner.”

But unemployment was not predicted to fall below its pre-pandemic levels of around 3.5% until 2024 at least.

When asked what was more likely for inflation this year, only one said it would ease. The other 40 economists were almost evenly split between “a significant pickup” and price pressures remaining “about the same as last year.”

Still, the core Personal Consumption Expenditures (PCE) price index – the Federal Reserve’s preferred inflation gauge – was forecast to average below the target of 2% on an annual basis until 2024 at least, prompting the central bank to keep interest rates unchanged near zero over the forecast horizon.

“I don’t think it will be an increase in underlying (inflation) trend, it is sort of a rebound in prices that have been depressed during the pandemic,” said Scott Brown, chief economist at Raymond James.

(For other stories from the Reuters global long-term economic outlook polls package:)

(Reporting by Indradip Ghosh and Richa Rebello; Additional reporting by Manjul Paul; Polling by Mumal Rathore; Editing by Rahul Karunakar and Hugh Lawson)

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

RELEASE: 10 Recommendations That Will Improve Maine's Economy and Democracy – Center For American Progress

Published

 on


RELEASE: 10 Recommendations That Will Improve Maine’s Economy and Democracy – Center for American Progress


Washington, D.C. — In Maine, more than 12 percent of residents live below the poverty line, and more than 1 in 3 families do not earn enough to pay for basic expenses. A new report from the Center for American Progress explains how strengthening worker power is key to reducing poverty and economic inequality in the state and how it would help to raise wages, close racial and gender pay gaps, and make the state’s democracy more responsive to the public.

While there are many steps the state could take to address these issues—including improving workplace health and safety standards, enforcing anti-discrimination rules, and reducing the influence of money in politics—ensuring that workers have a collective voice is crucial. Union membership in Maine has plummeted over the past 50 years. Today, only 5.5 percent of private sector workers belong to a union, despite the fact that research shows that unions help Mainers earn higher wages and benefits. Declining union membership has been accompanied by rising income equality in the state.

The report provides a blueprint for Maine policymakers to build worker power in their state, including these 10 policy recommendations:

  1. Provide workers a voice in setting and enforcing public health standards.
  2. Ensure that government spending creates good jobs.
  3. Improve workforce training by more fully involving worker organizations.
  4. Create workers’ boards to provide workers a voice in determining minimum industrywide pay and benefits.
  5. Partner with worker organizations and provide workers with a private right to action to ensure that workplace standards are enforced.
  6. Involve worker organizations in unemployment insurance modernization.
  7. Strengthen public sector unions.
  8. Use business permitting and licensing standards to support high-road businesses.
  9. Close loopholes that allow employers to skirt legal responsibilities and undermine worker power.
  10. Implement broad anti-retaliation protections.

“The COVID-19 crisis has exacerbated inequalities and shone a light on unsafe conditions in many Maine workplaces,” said David Madland, senior fellow at CAP and co-author of the report. “Weak worker protections and low rates of union membership have made it harder for workers to speak out and ensure that they are compensated fairly for their work. State policymakers can ensure a safer and more equitable economy for all Mainers by enacting reforms that strengthen workers’ voices on the job and in the economy.”

Read the report: “Strategies To Build Worker Power in Maine: 10 Recommendations That Will Improve Maine’s Economy and Democracy” by David Madland and Malkie Wall

For more information or to speak with an expert, contact Julia Cusick at .


The Center for American Progress is an independent nonpartisan
policy institute that is dedicated to improving the lives of all
Americans, through bold, progressive ideas, as well as strong
leadership and concerted action. Our aim is not just to change
the conversation, but to change the country.

© 2021 – Center for American Progress

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Biden's rescue plan will give U.S. economy significant boost: Reuters poll – The Telegram

Published

 on


By Indradip Ghosh and Richa Rebello

BENGALURU (Reuters) – U.S. President Joe Biden’s proposed fiscal package will boost the coronavirus-hit economy significantly, according to a majority of economists in a Reuters poll, and they expect it to return to its pre-COVID-19 size within a year.

Biden has outlined a $1.9 trillion stimulus package proposal to jump-start the world’s largest economy, which has been at the epicenter of the COVID-19 pandemic having lost over 400,000 lives, fueling optimism and sending Wall Street stocks to record highs on Thursday.

Hopes for an upswing in U.S. economic growth, helped by the huge stimulus plan, was reflected in the Jan. 19-22 Reuters poll of more 100 economists.

In response to an additional question, over 90%, or 42 of 46 economists, said the planned fiscal stimulus would boost the economy significantly.

“There are crosswinds to begin 2021 as fiscal stimulus helps to offset the virus and targeted lockdowns. The vaccine rollout will neutralize the latter over the course of the year,” said Michelle Meyer, U.S. economist at Bank of America Securities.

“And upside risks to our…growth forecast are building if the Democrat-controlled government can pass additional stimulus. The high level of virus cases is extremely disheartening but the more that the virus weighs on growth, the more likely that stimulus will be passed.”

For a Reuters poll graphic on the U.S. economic outlook:

https://fingfx.thomsonreuters.com/gfx/polling/oakveynqovr/Reuters%20Poll%20-%20U.S.%20economy%20outlook.png

The U.S. economy, which recovered at an annualized pace of 33.4% in the third quarter last year from a record slump of 31.4% in the second, grew 4.4% in the final three months of the year, the poll suggested.

Growth was expected to slow to 2.3% in the current quarter – marking the weakest prediction for the period since a poll in February 2020 – amid renewed restrictions.

But it was then expected to accelerate to 4.3%, 5.1%, 4.0% in the subsequent three quarters, a solid upgrade from 3.8%, 3.9% and 3.4% predicted for those periods last month.

On an annual basis, the economy – after likely contracting 3.5% last year – was expected to grow 4.0% this year and 3.3% in 2022, an upgrade from last month.

For a graphic on Reuters Poll – U.S. economy and Fed monetary policy – January 2021:

https://fingfx.thomsonreuters.com/gfx/polling/azgpoljbkvd/U.S.%20economy.PNG

Nearly 90%, or 49 of 56 economists, who expressed a view said that the U.S. economy would reach its pre-COVID-19 levels within a year, including 16 who expected it to do so within six months.

“Even without the stimulus package, we had already thought the economy would get back to pre-COVID levels by the middle of this year,” said Jacob Oubina, senior U.S. economist at RBC Capital Markets.

“With the new stimulus package there will be more direct money in people’s pockets, easily boosting the economy, provided a vaccine rollout progresses in a constructive manner.”

But unemployment was not predicted to fall below its pre-pandemic levels of around 3.5% until 2024 at least.

When asked what was more likely for inflation this year, only one said it would ease. The other 40 economists were almost evenly split between “a significant pickup” and price pressures remaining “about the same as last year.”

Still, the core Personal Consumption Expenditures (PCE) price index – the Federal Reserve’s preferred inflation gauge – was forecast to average below the target of 2% on an annual basis until 2024 at least, prompting the central bank to keep interest rates unchanged near zero over the forecast horizon.

“I don’t think it will be an increase in underlying (inflation) trend, it is sort of a rebound in prices that have been depressed during the pandemic,” said Scott Brown, chief economist at Raymond James.

(For other stories from the Reuters global long-term economic outlook polls package:)

(Reporting by Indradip Ghosh and Richa Rebello; Additional reporting by Manjul Paul; Polling by Mumal Rathore; Editing by Rahul Karunakar and Hugh Lawson)

Let’s block ads! (Why?)



Source link

Continue Reading

Trending