Redesigning Trade and Employment | Jobs Reset Summit 2020

TL;DR

COVID-19 has had significant impacts on global trade and employment, but it has also accelerated digital trade and remote working opportunities.

Transcript

well welcome everybody uh good morning good afternoon good evening wherever you are in your world i think we got a great session uh today on redesigning trade and employment it's really extensive uh subject that uh touches everything trade drives so much uh and employment that uh we're gonna be hard-pressed to get a lot done in the 30 minutes but a... Read More

Key Insights

• 💦 The pandemic has highlighted the importance of broadband infrastructure for enabling remote work and digital services.
• ™️ Trade finance instruments are crucial to ensure the resumption of trade by minimizing risk and uncertainties related to payments and shipments.
• 👶 Active labor market policies are necessary to support workers in transitioning to new jobs and to stimulate the creation of new services.
• 🎓 Investments in basic infrastructure, such as internet connectivity, and education are essential for successful digitalization.

Questions & Answers

Q: How has COVID-19 affected employment and trade in different countries?

COVID-19 has resulted in job losses and business closures, particularly in emerging markets, due to the fiscal impact and limited government support. Trade has also fallen significantly, primarily in sectors like tourism and services.

Q: What are the potential long-term effects of COVID-19 on trade and employment?

Uncertainty remains, but the second wave of the pandemic, trade restrictions, and reduced foreign direct investment are expected to hamper trade recovery. However, there are opportunities for emerging markets to attract investment as companies seek resilience in their supply chains and embrace remote work.

Q: How will reshoring and near-shoring impact developed and developing countries?

Reshoring is more likely in medical supplies due to national priorities and the need for greater resilience. However, overall reshoring is limited, and companies are more inclined to diversify their sourcing strategies, potentially benefiting other emerging markets.

Q: How are technological innovations and new business models enabling shifts in services trade?

Technological advancements and digitalization have accelerated remote work and digital services. Automation and reduced labor costs are fostering local production, and the digitization of service value chains is creating new opportunities for emerging markets.

Summary & Key Takeaways

• The pandemic has caused a decline in international trade and employment due to demand and supply shocks and travel restrictions.

• However, some companies are restructuring their supply chains for improved resilience and to address economic nationalism.

• On the positive side, digital trade, e-commerce, and remote working have surged, offering new opportunities.