Unemployment is healthy for the economy and is necessary for businesses to maintain profits, according to MasterCard Asia-Pacific economic adviser Yuwa Hedrick-Wong.
Dr. Hedrick-Wong said that a businesses ability to “lay off people faster than your competitor” will determine who is a “survivor.”
“That in turn will allow business to expand, and investment will begin to come back to turn that business cycle around and increase employment,” he added.
Dr. Hedrick-Wong said businesses shouldn’t worry about high unemployment, and should ignore the “doom and gloom” spread in the media and among political leaders. He predicts a stabilisation of Asian economies in the second half of the year, with China to lead the recovery.
“I think the global crisis is bottoming as we speak and we should see more evidence of stabilisation through the course of the second half of the year.”
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