16% jobs lost in first month of lockdown
(CNS): A straw poll of some 300 members of the Chamber of Commerce showed that between 13 March and 17 April those businesses laid off more than 1,400 employees, which is around 16% of the respondents’ pre-COVID-19 workforce. Chamber President Woody Foster said that this survey covered only a small percentage of employers, so the real picture is going to be far worse.
“What these results demonstrate is that the businesses surveyed have laid off approximately 16% of their staff within the first 4 weeks. Taking into account that the businesses surveyed represents around 18% of all jobs in the country, the national unemployment situation currently is likely to be much more dire,” Foster said in a release from the Chamber about the survey.
The survey of its members was part of a study into the impact of COVID-19 on the local economy, which was commissioned by the Chamber and carried out by local financial consultants FTS.
However, the report is only an estimate of how bad things might be, given that there are so many variables and unknowns regarding the fallout from the virus and the length of time people will be in lockdown.
The worse case scenario is if Cayman is under some form of lockdown and keeps its borders closed until the end of July, which would lead to an estimated loss of over 14,000 jobs, a 22% decline in GDP and a loss of CI$512 million in salaries, the report found.
Even if Cayman emerges from lockdown by the end of May, the outcome would still be bad, with almost 11,000 jobs lost, a 15% fall in GDP and a loss of around CI$317 million in pay, the consultants predicted.
“It’s fair to say that everyone knows the impact is negative and we are all concerned,” said Foster. “But we felt that carrying out a formal assessment is an important first step. This enables us to better understand how certain sectors will be impacted and importantly the magnitude of the responses required to assist workers.”
He said the assessment is a first step but the country needs to quickly develop an economic resumption plan.
“The Chamber is looking forward to working collaboratively with the government on a plan to be implemented when the government and its medical experts decide that some domestic economic activity may resume in the country,” he said.
The report reflects the increase in pressure on charities and the Needs Assessment Unit, which is predicted to get worse. The findings show that those who have lost and will lose their jobs tend to be among the lowest paid, such as those working in hospitality, and least able to weather a storm like this.
Those in the financial services sector are far less likely to face layoffs since they can work remotely and because the business of money rolls on in both good times and bad. However, it will not be immune to the potential impact of external forces and the collapse of the world economy.
But the consultants indicated in the report that, regardless of the extent of the economic blow, the post COVID-19 economy will have to be very different if Cayman is to survive without a tourism sector for foreseeable future. The country will need to develop a more substantive domestic economy, embrace new technologies and increase the focus on local agriculture, the report found.
See the Chamber’s Full Survey and the Executive Summary
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No government employees lost their jobs. We are descending into a police state run by a group of thugs.
We just had our Premiere essentially threaten the media. We are not to ask questions they do not want to answer. This is the definition of a slippery slope. Not a good sign for democracy. Not that we ever had one here.
Alden won’t stop until he has 100% unemployment and we all agree to let him be the Premier/Dictator for life
I see major concern for this country whenever we open completely. I believe 80% loss for the entire country. That 30-35% profit some of you all were used to prior to March closure, that will be sometime after next year. I understand a lot of people going to have to downsize. But just work permit holders are really who we talking about. When they start going home with that $10,000 plus you will understand what we talking about. People who are working here and sending money was the only reason they came to work here. Do you all realize how much money that is in Jamaica or Philippines? You can start businesses or build a brand new house. The blue collar worker in Cayman will be the first they send home and they ain’t coming back. Cost of living is a disgrace in this country. A small apt. is US$2000-2500 per month. There should be a health code that forbids more than 2 adults in a room. Elect, water and groceries are still too high and fuel and insurance still can’t go down. When are we going to get legislation to stop the mafia of these essential products and services? There is no payroll, Capital gains, income taxes so this island can drop 40% of its profit gouging.
What I can’t believe is how people still don’t realize the impact of tourism has to this country. Even with all of the hotels and condos, people said they prefer them instead of cruise ship tourism. A friend of mine goes to Cuba every summer. They brought all the tourists to Havana and put them in hotels. We had no flights to Cayman so he and his girlfriend are living the life of riley. They are living free including medical, dental and eye care.
When will old people be able to retire here. People over 65 didn’t join pension some own land. If they sell it, it still won’t be enough, so have to work still no tourism this year. Any suggestion? Need a job that pays CI$12 per hour because of cost of living. But of course if special discounts for elderly are given we could work for less. This is the time to show Caymankind I address this to the Minister of Health. Show the Eastern Districts what you can do for us. Every 65 yo should have free medical insurance that includes dental and a pair of reading glasses. This is the time to get things done before the next election. What about men who went to sea or was in the military? Why can’t they get a stipend instead of NAU.
I agree with your comment and its time that we the cayman people start asking the right questions and do better for ourselves and our children (our future)
As restrictions start to lift (in time) I am dreading the response from the minority (the selfish) that again that will impact the majority (the compliant). That has been the case through out this crisis and while I would want to believe that we can learn, when at your core it is “all about you” there is little hope. Cayman please let’s make this phase of this pandemic management one that show we can learn and that we really for have the ability to put others first.
As the world struggles to get back to normal after its shared 911 moment replete with its draconian laws based on dodgy science, the democratic nations of the world need to ensure that this never happens again.
Sweeping laws that enable a jurisdiction to descend into a police state literally overnight must be checked by the full force of democracy.
Absolute power corrupts absolutely and our cabal of Lodge adherents are no exception.
This coup could never have been executed so ruthlessly and efficiently without a coordinated effort stretching across the globe.
If anyone thinks that our “leaders” do not answer to their “leaders”, then they are sorely mistaken.
My only hope is that out of this debacle, the truth will emerge and those who have benefited from this at the expense of the common man will be exposed for the wilful criminals that they are.
I would hope that the decent, God-fearing and law-abiding Caymanians can step up to the plate for the next elections, provide some fresh, untainted political blood, free of the cabal and crush the ability of despots to seize control in this manner ever again.
There must be some form of term-limits and there must be some form of ability to recall politicians, even the entire government, by democratic majority without having to punish for four years under a regime of broken promises and personal enrichment.
Perhaps this facility already exists and someone could enlighten us? I would be looking forward to casting my first ever vote in a free and fair system of democracy.
Finally, it is not for the Crown to give the right to stand for the Legislative Assembly, that right must belong to the people.
If the people so deem, then let it be and perhaps we could steer our way to an intelligent independence based on education, science, good moral values and freedom of speech.
If the people do not deem, then let them completely re-work this pathetic system that seems to benefit the chosen few and their corruptible sycophants.
Why can’t Banks open more than one branch? Make them all put up plastic shields so that they can serve their customers in a shorter time. It’s the same amount of people but they won’t all have to stand in the same line for hours. Persons from Eastern districts & West Bay have to drive all the way into town causing more traffic in town and then get in the same line. Some gonna soon lose their job by not being able to work for a whole day due to having to go to the bank.
How often do you need to go to the bank?
Twice a day every day
10.22..you are covidiot!
“covidiot” is a construct created by fearful children.
Not only should every bank have branches in the outer districts, the tellers should be trained to clean pools on the way to work, and trim hedges on the way back.
Why? No bank needs to open at all – ever. Everything could be done online. All they have to do is spend the branch money on their digital services. It’s a chance to kick Cayman’s antiquated banks into this century.
Agreed. And then maybe they can reduce their fees based on reducing their overheads on premises and staff because with all these “card only” transactions required lately, theyre going to see their usual year end profits made by August between the debit card fees paid by customers and vendors!
I have to say. Compared to other countries and jurisdictions, it is a great job that we are operating in perfect transparency of the law. People are not getting wilfully drunk, they are able to purchase essential items that enable them to improve their properties during the lockdown.
Fair is not being made of some and foul of another. Vicious woman-beaters do not call the shots and truth abounds.
I would say we are in good shape.
This is so difficult. I appreciate all of the persons volunteering their time and expertise. The sooner we recover the better for all. Please CIG, do not mire us down with foolishness. We need wisdom and transparency; now more than ever.
Numbers don’t count here. you have to look at the content:
An accountants firm fires all caymanian supporting staff and keeps the lawyers on the pay-roll. Should be the other way, because the staff lives from paycheck to paycheck.
Yes, but support staff don’t generate fees. You need fee earners to service clients or there is no business.
An accountants firm with lawyers on the payroll? I guess all the pool maintenance firms will hire divemasters to keep Caymanians out.
9.11 Wouldn’t be surprised if they tried.
Agreed. Seen it done multiple times.
Accounting firms, like Big4, don’t employ lawyers, they hire them on a contractual basis.
You have to keep your income earners when things back up and running then hire support as needed
Which is why Alden allowing foreign domination of senior roles, including in breach of law, was always going to fail.
As a regular critic of CNS, Kudos to CNS for reporting this!
As especially MAJOR kudos to CNS and Wendy for asking Mr Seymour about his seemingly Cesar-Like exception to the rules as reported on CMR.
And DOUBLE MAJOR kudos to Wendy on not backing down, on that incredibly PATHETIC and EMBARRASSING question-dodge by the “Minister of Health”. Good on you!
Really seemed like Alden wanted to be anywhere else but there at that moment, hoping for a ANY message to come in on his phone as to not have to face the camera. Is it going to take another crying session to realize that they should really reconsider the structure of these press briefings?
GOOD JOB CNS! Keep these people accountable.
Agreed. Well done CNS. It was brave and appropriate that question be asked. Thank you for being the lone voice (to be fair the Mark Road seems to have played a part) in openly and transparently asking the question. The Minister’s response was astounding. No denial. Just plain obfuscation.
Will the commissioner and the other law enforcement authorities be investigating this alleged breach of the law? Any comment from them, or does this just get added to the stinking pile under the rug that causes so many to call us out and call us corrupt.
We all look forward to the truth. Keep safe while digging for it Wendy!
Couldn’t agree more. His response was comical and not in a good way. I hope he is repremanded, tho I highly doubt it. Ignorant fool he is. Well done Wendy, keep up the good work!
John John- “I hope that answers it?”
Wendy- “No, not really.”
Priceless, comedy gold…
The silence afterwards was Epic.
First Lady Seymour! How dare he say you were brave to ask the question- isn’t that what a free press does? And his comment about a donkey was was very apt – I’m embarrassed for those who voted for him.
Could the Governor please refer us to the exemption from laws seemingly applicable in this case? Given he was there and all, and cannot really say he doesn’t know about it?
Was that a threat to a member of the press (who just happens to be female) that I heard? Is that acceptable in our so called free and democratic society?
Still, given the speaker is yet to be fired, maybe that is simply how we roll.
Thanks Guv.
The Premier and his advisers are out to lunch – total incompetence. To have this bunch in charge is terrifying.
There is now a fast China virus test:
https://www.abbott.com/corpnewsroom/product-and-innovation/detect-covid-19-in-as-little-as-5-minutes.html
Why can’t visitors be tested at the airport before they board or on the cruiseship before they disembark?
Ummm, because you would not test positive until days after you have been exposed?
Do you know how long that would take to offload 4000 people from a cruise ship…I don’t want to see another one of them around here for a long time and until they can figure out how to keep those large “petrie dishes” clean and safe for their passengers.
Feedback from the CoC is important. However, it is important to recognize that the CoC only represents the views and perspectives of the business entities that they lobby on behalf of and represent. The government needs to be working closely with groups and individuals that have a broader focus but not with special interest groups.
There are no views expressed in the report. Just data put in an understandable way. The math does not lobby or mislead. It informs.
If you count persons who are at home with no pay, the number is much higher than 16%. The DLP has not helped the position by stating that “no work no pay” is permissible, even though that may represent a breach of law and of contracts.
Absolutely, most likely at around 35% now and still growing.
…and at the depths of the Great Depression it did not exceed 25%. You truly ready for this Alden? Not seeing any overt cutting of expenditures. Am sensing lots of civil servants being fully paid to do nothing.
This seems really low, I guess it doesn’t count the hotel staff still getting paid
The current lockdown rules are nonsensical. It’s ok for me to go to the liquor store with 6 staff and 20 customers (thank god) but it’s not ok for a pool guy to come do my pool, on his own, outside. It’s ok for me to buy a bicycle at cost u less but not at Uncle Bills. It’s ok for me to shop at Fosters with thousands of others touching all the same fridge doors but it’s not ok for ALT’s to drop off lumber and hardware on my drive. It’s ok to have Sushi delivered 6 days a week but not ok for the gardener to come do the garden twice a month. I don’t even care if my pool or garden don’t get done, I’ve got nothing better to do but I’m pretty sure the guys that normally do it are desperate to be paid to do so. If you wanted to design a system to cripple these guys whilst making life difficult for everyone else, all for absolutely minimal virus transmission risk, this is it.
So what you are asking is to go back to business as usual or to at least open the businesses you do business with? SMH!
The whole process was intended for us to be able to get basics and stay our assess at home so as not to spread or catch the virus. If we had left every business open then we would have a hell of a lot more than 70.
Clearly the point of the post is to highlight the absurdity of allowing some economic activity like liquor stores and restaurant deliveries whilst banning far less risky businesses for seemingly no reason. Obviously containing this does not mean business as usual but if businesses can operate without and personal contact why the hell not let them? Just because we have to shoot ourselves in the foot economically, it doesn’t mean we need to do both kneecaps and hands for good measure.
the COVID death rate is wildly exaggerated right now which no one WANTS to believe. Coroners have been saying this for a while since they are encouraged to attribute every death to COVID regardless of other indications like age or other comorbidities!
Meanwhile Cayman and other economies are dying! We NEED to re open since it will be many months before people travel again!
Business as usual? They didn’t say any thing of the sort. Perhaps some reading comprehension lessons would help. Online obviously.
Its possible to be concerned about BOTH the virus and the extraordinary harm being done to people just trying to make a living. Initially the ‘essential worker’ mantra was fine, but several weeks in, we have to be smarter. We MUST let low-risk economic activities resume or the island will be reduced to ruin.
Something tells me you’re not one of the people no longer being paid and at risk of losing their home. Amiright?
Yep, and I’m not going anywhere or spending any money till things have settled way down. Still have a job for now, but who knows with the economy going tits up
Said the rich man.
Can I please add 100 thumbs up to this post! I really would like to buy a decent bike from Uncle Bills so I can exercise, especially since I can’t drive to a remote place to walk. And I most definitely would like to purchase a few Items from ALT’s so I can do some DIY projects, since I’m home all the time.
I don’t drink alcohol so having the liquor store open 6 days a week is not my choice of “necessity or coping mechanism” So, Please allow us that simply want a chance to use our time constructively to cope to do so. Two days a week A-K one day and L-Z the other day!
Yes, but you fail to see. What you have said is common sense and our ignorant tyrants can only see zeroes …..on their bank accounts. There has been a lot of dishonesty during this lockdown and if the courts of law are still operating, I see our leaders in the dock. Personally, I have concrete evidence and will be prepared to present.
Do it.
Thank you…so now how is CIG going to address this…more money to taxi drivers? Let us take remainder out of our pensions? Time to lead Adlart.
well done to chamber…providing a real insight unlike the useless government who are happy to sleep walk this economy into oblivion