Virus taking its toll on businesses

AS Papua New Guinea enters the seventh week of the state of emergency, the reality of the economic crises created by the coronavirus pandemic is showing its ugly head.
Many who have been formally engaged in paid jobs had been laid off as businesses scaled down their operations – reduced or stopped production.
Without alternative income sources, these workers and their families will have no means to survive.
The International Labour Organisation (ILO) warns the continued sharp decline in working hours globally due to the Covid-19 outbreak means that 1.6 billion workers in the informal economy – that is nearly half of the global workforce – stand in immediate danger of having their livelihoods destroyed.
The Government should implement SOE orders which is already having a negative consequences.
Like any other businesses, informal sector business will end up with a reduction in customers because of the pandemic.
There are many different categories of workers in the informal sector.
And, worryingly, despite the huge number of people in this labour force, the earning differentials between the formal and informal sectors are significant.
The informal economy sector is the largest employer in PNG.
According to a summary report from the National Informal Economy Audit Report, there is an estimated K12 billion circulating unbanked.
There are many people engaged in the informal economy who have earned a lot of money.
While the Government works on restoring normalcy, every provincial government should work with business houses to mitigate disruptions to its economies and labour market.
East Sepik leaders under its Resolutions for Covid-19 resolved to return to work while maintaining secure border points and incorporating Covid-19 practices into all activities.
The leaders resolved that all businesses start to return to normalcy as soon as practical including opening of the main markets after installation of sinks and running water for washing hands.
Governor Allan Bird last month said if the lockdown was to continue, the Wewak Urban LLG workers would be laid off because their revenue source – the main market – has been closed for four weeks.
Quick statistics by Penial Kabilo, Project Lead, Vendors Collective Voices, HELP Resources show that with the markets closed since March 28; 1,400 vendors in the Wewak market could not earn a living.
At least 500 street vendors sold outside the market and at least another 500 had so called table markets around a small radius from the market.
So approximately 2,500 had their livelihood greatly impacted.
With most urban markets around the country temporarily closed due to the coronavirus threat, local informal economy workers are already feeling the brunt of this global pandemic.
Unlike workers in the formal systems who are guaranteed some social security during the lockdown, informal workers are not eligible for such social protection.
We concur with ILO’s call for urgent, targeted and flexible measures to support workers and businesses, particularly smaller enterprises – those in the informal economy and others who are vulnerable.
They have no savings or access to credit. These are the real faces of the world of work.
If they don’t get help now, these enterprises will simply perish.
No income means no food, no security and no future.
Millions of businesses around the world are barely breathing and PNG is no exception.