‘Some employers have responded to Covid by adapting their operating models but, nonetheless, indications are that whilst unemployment has fallen from its peak, we can expect further more permanent job losses later in the year and into next,’ said Deputy Gavin St Pier.
‘Guernsey has been relatively fortunate in that the finance sector, which represents 40% of the economy, is in large part sufficiently diversified and digitally equipped to enable it to continue operating remotely. This kept a significant proportion of our population employed and productive during the height of lockdown.
‘However different parts of the finance sector will be impacted in different ways. The challenge is to support the different parts of the sector in remaining competitive in a significantly changed global environment amidst a severe global recession.
‘Transport connectivity, data security and resilience, risk-based regulation and an effective long-term approach to skills and population will be among the critical factors in enhancing competitiveness, as will be effective external relationships, reputation management and promotion.’
Deputy St Pier said there was a ‘critical role’ for public stimulus by providing liquidity and demand for services, which in turn could mitigate increased levels of unemployment. But that would need to be carefully designed and co-ordinated within the island’s overall Covid-19 recovery strategy.
He also set out how the strategy was focused on construction, financial and professional services as well as information/communication services to improve growth rates by 1% per annum. ‘Prioritisation and affordability must be at the heart of all government and operational decision-making. This will be vital to enable investment to be targeted which has the best and effective overall impact.’
Deputy St Pier noted some jurisdictions were attaching so-called ‘green strings’ to fiscal support to ensure businesses were rewarded by continuing to consider environmental and social, as well as financial outcomes. ‘We will be actively exploring that.’ he said.
You need to be logged in to comment.