The seriousness of the situation leads to multiple sectors, which were initially considered as relatively immune, are being affected
The quarantine caused “noticeable falls” in the turnover of companies, even in those excepted from isolation or that operate under the modality of “telework”. This was recognized by the Government, which is why it admitted that the possibility of closings and unemployment has increased.
In this context, the Executive Branch plans to make further extensions of the Emergency Work and Production Assistance Program (ATP).
Its objective is “to mitigate the impact of the sanitary measures adopted to mitigate the coronavirus pandemic on production processes and employment.”
“The severity of the situation has led to multiple sectors, which were initially considered relatively immune to the pandemic, are also being affected. In other words, what the first billing data shows is that being exempt from quarantine or having a high potential for teleworking does not guarantee that firms can operate relatively normally, “as diagnosed by the Evaluation and Monitoring Committee, published in the Official Gazette.
According to that report, many companies “have experienced noticeable drops in their billing.” “All of this increases the probability that firms will close and, with it, that formal workers will lose their jobs,” he said.
Many activities excepted from quarantine or with a high percentage of teleworking “are suffering nominal drops in billing.”
There are some branches where the average turnover has been maintained or has even risen (such as commerce in supermarkets or the production of medicines), while in others there has been a drastic collapse (such as in hotels and restaurants or in services linked to the spreading, both with nominal interannual falls greater than 50%).
Among the items included in the initial consideration to be part of the ATP program, the most affected sector was that of Hotels and Restaurants and artistic, cultural and recreational Services, with collapses in its turnover of 57% and 55% in nominal terms. The period considered is from March 12 to April 12.
On the other hand, among the sectors not included in the assistance plan for the payment of wages, the construction of transport works had a drop in turnover of 53.3%, although considering 25% of the companies in this category with the worst performance, turnover decreased 100%.
Notary services decreased by 60%, retail sale of paintings by 48%, sale of construction materials 47% and sale of articles for hardware 40%.
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