Asia Pacific – Millions could lose jobs due to US-China trade tensions, UN report says

Trade tensions between the US and China have begun to disrupt existing supply chains with trade growth slowing after the first half of this year, according to a report by the UN Economic and Social Commission for Asia and the Pacific. Tariff increases already in place are expected to cut global domestic product by USD 150 billion, and 2.7 million workers in Asia Pacific could lose their jobs. The most impacted could be the unskilled.

If the tariff war escalates, almost 9 million in the region could lose their jobs.

Global supply chains could shift to other countries, and Vietnam in particular could take over some activities from China, according to the report. Still, such redirection of trade flows cost by trade tensions are not optimal or stable.

“As production shifts take place and resources are reallocated across sectors and borders due to the trade conflicts, tens of millions of workers may see their jobs displaced and be forced to seek new employment,” said Mia Mikic, director of the Trade, Investment and Innovation Division at the commission.

“Regional integration will be important to create new economic opportunities,” Mikic said. “But other complementary policies, such as labour, education and retraining policies plus social protection measures to support people negatively affected must also be placed high on the policymakers’ agenda if the region is to continue making progress towards the sustainable development goals.”

Still, Asia’s economic growth, overall, remains steady despite the trade tensions, reported Modern Diplomacy.

Source:: http://www2.staffingindustry.com/row/Editorial/Daily-News/Asia-Pacific-Millions-could-lose-jobs-due-to-US-China-trade-tensions-UN-report-says-48407