Employment in Economic Downturn

08 Aug 2020

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While the entire world is fighting a fierce war against the deadly Corona virus, it is also fighting a global economic crisis that was never seen before. The face of this economic crisis that has plagued the entire globe looks worse than the one witnessed earlier in the year 2008-2009. Covid 19, as the virus came to be known popularly, has crippled not only the health of the world, but also its economy.

As the pandemic eats away jobs…

Joblessness has become one of the many known symptoms of the virus.The US Bureau of Labor Statistics has announced some alarming numbers with regard to unemployment in the recent times. Unemployment has risen to 14.7% since April 2020. This paints an ugly picture, which is analyzed as causing permanent job loss to as much as 42% of the population a result of this pandemic. Predictions ask us to watch out for trouble in terms of the reallocation of jobs, employees, and funds across firms and locations in the time to come. Governments across the globe are not only looking for ways to fight the virus, but are working toward devising methods to recover from the economic setbacks.

Going from bad to worse

The reason why this economic crisis is considered worse than 2008-09 is quiet alarming. Survey of Business Uncertainty (SBU) has put forward facts that the outbreak of the virus has led to 12.8% of layoffs only in the month of March. What’s more unfortunate is that there are only three new hires for every 10 layoffs. The SBU, which is a product of the combined hard work of Federal Reserve Bank of Atlanta, Chicago Booth and Stanford University, revealed that most of the hiring is known to be happening in the fields of retailers, grocers, and food-delivery. The instability in the job market is also a curse of the pandemic. People working at restaurants, gyms, and retailers are suffering the worse outcome of COVID-19.

Although employees of the IT sector are experiencing a mixed outcome of the virus outbreak, startups are struggling their way out through this. Despite this, there is a tiny ray of hope for people looking for jobs in the fields of online delivery services, e-commerce, consumer tech, consumer goods, business software, and financial services. Employers in these areas of work are on the lookout for talented individuals who are capable of supporting their current business while enhancing the same with their unmatched skills.

Embracing changes

If you think that the change is only being experienced from employment to unemployment, you are wrong! The world shall soon experience a shift from full time employment to large scale of freelance work. With technology taking over human skill and the drastic shortage of money, employers all over the world are looking at replacing all that can be replaced, while enjoying the same services at a lower cost. This means that clerical menial workers and coordinators have big reason to worry. Companies are employing a verity of methods to reduce their costs to the greatest extent possible. Some of the popular methods include reducing working hours of some employees and sending some off on temporary leave.

What to expect

The fear of the negative effects of COVID-19 has compelled many companies to resort to outsourcing their work resulting in an increase in demand for employing people on a freelance basis. The world is about to witness a major change in the way people work. Local businesses are more likely to flourish owing to a tremendous reduction in global travel. Don’t be surprised at the unannounced birth of many local jobs.

The urgent need for social distancing has paved way for many telecommunication jobs and remote jobs. The need of the hour is that job seekers must sharpen their skills that match those of the telecommunication requirements. With the change in the kind of work, it is important that the recruitment policy should also undergo a change. Businesses today, need employees who have a dynamic attitude. They need people who can adapt to the ever-changing circumstances in a hassle-free manner. Are you one of those dynamic people?

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