Unemployment to increase in the Asia Pacific region - report

COLOMBO (News1st): Unemployment rates are likely to soar above three percent in the Asia Pacific due to the negative impact on the services sector, a report published by a US credit rating agency showed. "Historical data shows that jobs lost are not easily won back," Shaun Roache, Asia-Pacific chief economist at S&P Global Ratings said in the report. For the average Asia-Pacific economy, out of every 100 workers, 55 work in services, of which 22 work in wholesale and retail trade or hospitality, S&P Global Ratings said. "Workers may suffer from a cut in their hours and, as a result, their wages even if they do hang onto their jobs," the rating agency added. Recently, Sri Lanka's central bank also announced that the country's manufacturing and service sectors hit record lows in March, dropping drastically on the Purchasing Managers Index. Employment had declined due to the discontinuation of contractual and casual employees and the freeze in recruitment, according to the central bank statement. “New businesses and business activities declined mainly in services related to tourism industry such as hotels, travel agents, and recreation activities,” the statement read.