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Does innovation cause job losses?

The ILO’s world employment and Social outlook 2017, its sustainable enterprises and jobs was released in October, it showed that the companies were tend to being more productive, creating more jobs and employing more skilled and more number of female workers. 

The WESO 2017 report claims that innovation is a major source of competitiveness for enterprises, as well as a key driver of sustained growth and development and when asked about the thought of job creation and would the innovation destroy jobs for many people? This was their take. ILo believed that there was no simple answer to these questions, and also this was at the core of all the panel discussions around the future work with the idea of what some say as a “jobless future”, they said. The better understanding was clearly needed of how the innovation affected the jobs. The workers and even the firms in order to provide better policy solutions. The last research showed that over the course, tech progress had created more employment than it ever destroyed. It is also true that in recent years, there were many job losses in non-innovative low tech firms. This highlighted the risk of job losses among that low skilled workers especially in the manufacturing sector. Of course the speed threats everyone, the pace and scale of technological changes amplified fears for those workers. But on the other hand, the reports suggest that the innovative firms tend to create more jobs, employed more workers and in particular hired those who were skilled and female workers and could be more productive.

The quality of the Jobs which were being created was the next question. They believed that was certainly more concern in this area too, and the fact that both the labor market benefits and the social benefits of innovation were not evenly distributed. Innovation in fact led to more intense usage of temporary workers in some cases, especially among the female workers. Firms implementing product and process innovation tend to employ more temporary workers than non-innovators by over 75 per cent.

One would most certainly ask of what were the characteristics of firms that innovate to bring about these changes? ILO answered, even though some argue that large firms are more likely to innovate because they benefit from economies of scale our research shows that size (as well as age) have a limited link to firm revolution. Smaller firms might modernize more because they are free from the burden of bureaucracy and they are more likely to be enthusiastic to take risks. Internal resources as well as easier access to external finance and public subsidies also play a role in modernization.

To conclude, governments, workers and employers’ representatives and other stakeholders should reflect together on the type of jobs and skills that will be relevant in the future. More consideration should be given to providing flexible and comprehensive social welfare cover to workers whose work arrangements differ from full-time permanent employment.

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LexisNexis risk solutions study reveals sharp rise of financial crime compliance costs

Decision makers inside banks, investment firms, asset managers and insurance firms identify the drivers impacting financial crime compliance. LexisNexis® Risk Solutions revealed that the results of its annual True Cost of Financial Crime Compliance Study for the U.S. and Canada. The total projected cost of financial crime compliance for the region is approximately $49.9 billion. The survey illustrates the sharp increase in financial crime compliance costs.

The study projects the average annual cost of financial crime compliance for U.S. financial institutions with $10 billion. Pandemic Continues to Spur Growth. The pandemic continues to negatively impact compliance operations. Sixty eight percent of U.S. respondents report longer times required to complete due diligence. Fifty five percent of U.S. respondents report reduced productivity compared.

More U.S. financial institutions now rank real estate and hospitality as top money laundering risk segments. Crime involving digital payments, trade-based money laundering and money mule schemes are on the rise. Digital currency is a growing problem for Canadian firms. Crimes involving digital payments have the greatest impact on compliance costs. Cryptocurrency crimes have the greatest impact on compliance costs for Canadian firms. The survey results demonstrate that financial institutions are battling a broader set of issues.

Survey respondents indicate that a lack of current and extensive data tops the list of Know Your Customer (KYC). Leslie Bailey, vice president of financial crime compliance strategy for LexisNexis Risk Solutions stated that the study shows clear linkages between the pandemic, digital crime and increasing regulations. Hence, financial institutions need to prepare for expanded compliance obligations and risks from emerging financial crime. Bailey added that digital transformation is a game-changer for financial crime compliance operations.

This will require a sophisticated approach that incorporates insight into digital behaviors. This study surveyed 145 decision-makers in the U.S. and Canada. Responses were collected in June 2019, August 2020 and June 2021. Organizations such as banks, investment firms, asset management firms and insurance firms. The total annual cost of compliance across firms was calculated using survey data. The spend amount was generated by multiplying the average percent allocated to financial crime costs.

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COP26 delegates agree on need to deliver on $100 BLN climate finance pledge

Delegates heading to the COP26 U.N. climate summit in Glasgow. These delegates agreed that they must deliver on the $100 billion per year pledge. COP26 president Alok Sharma said that, it is to help most vulnerable nations for tackling the climate change.

After many days of meetings at the pre-COP26 climate event, which happened in Italy, Sharma said that there was a consensus to do more. Which is to keep the 1.5 degrees Celsius target within reach, adding more needed to be done collectively in terms of national climate plans.

The COP26 conference in Glasgow aims to secure more ambitious climate action. This is from nearly 200 countries, those all that have signed the 2015 Paris Agreement for limiting the global warming, well below 2.0 degrees Celsius. And to 1.5 degrees, above pre-industrial levels.

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City’s exposure to Evergrande is very minimal-Hong Kong finance Chief

Hong Kong’s exposure to debt-laden developer China Evergrande Group is very minimal at 0.05%. This is of banking assets, South China Morning Post reported, citing the city’s finance minister. Financial Secretary Paul Chan told the newspaper that it is very minimal and won’t cause them any systemic risks. He added that he had arrived at the conclusion after a recent audit of the local banking sector’s exposure to the company.

Chan also said that the Hong Kong’s stock market was inevitably subject to some volatility. This is amidst a recent mainland crackdown on some industries. But still he believed any setback would be temporary. With liabilities of $305 billion, Evergrande has sparked concerns its cash crunch could spread through China’s financial system. This may reverberate globally and that is a worry that has eased with the Chinese central bank’s vow, to protect homebuyers’ interests. Evergrande has missed two bond interest payments. Bondholders have said this and its offshore debt, amounting to about $20 billion, trades at distressed levels.

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