Thursday, September 29

Effect of Covid-19 over the world economy and unemployment

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International labor organization warns out that globally the consistent and fast decrease in working hours due to the corona virus / COVID-19 outbreak means 1.6 billion people (half of the world’s labor force) is ultimately in danger of destroying their livelihoods. On regional basis this condition has become worse. Estimation shows that loss in working hours in America is 12.4%, in central Asia and Europe it is 11.8%, and 9.5% for other regions. In contrast to the pre-crisis (2019) collapse of 105% is expected which is equal to the 306 million full-time jobs. This is only due to the extension in lockdown measures. The main purpose to write this article is to focus on the loss of earnings and crisis generated as a result of unemployment due to current pandemic. High level of grief and trauma occurs due to loss of work on poor working class and obviously on the big enterprises which results in the downfall of overall economy. Effect on informal economy Around the world, the resultant drop in the income of informal workers in the first month of crisis is 60 percent. Which is 81% in Africa and America. 21.6% is in Asia and pacific while in Europe and central Asia is 70% Economic crisis which are created due to this pandemic is about 1.6 billion informal workers which are more essential in labor market, in total of 2 billion are suffering from this great loss of their earning capacity. This damage is due to lock down measures and work in hardest hit sectors. Without any additional income source these people have no means to survive. Impact of unemployment on Youth According to the report of world health organization 2020, there is an enormous painful impact of covid 19 crisis on youth for loss of jobs, which increase the competition among the workers across the globe. This global crisis changes the priorities of youth and leads them towards a new life style which results in skills development and adaptability among them. Furthermore, due to this global crisis a sense of identification and purpose is developed in the young people which helps them to explore more. Effect of pandemic on huge economies When the global economy faced Covid-19, the elected governments all over the world implemented massive and novel relief ideas and programs. Although these programs are different in detail but they have one major dimension: the extent to which workers can be relieved by the government agencies. Within big democracies from April, United States took the largest increase in the unemployment measures. Most of the countries in Europe channeling the relief and subsidizing their employees to avoid the unemployment. US: US congressional budget office predicted that 15% of workers could be unemployed in the third quarter of 2020.US Private sector shaded out 20 million jobs, the question is that how these jobs will take come back. Canada: According to county’s statistical Bureau the unemployment rate in Canada in April was13% which was 5.2% up in march. Japan: Japan rising rate is slower than of America and in March it was 2.5% with 1.75 million unemployed. Larger number of people were requesting for emergency loans. UK: In UK the unemployment is only 4% while the employment level is very high. Germany: In Germany the employment level is high but than that of America is very low. Italy: In Italy the unemployment level is dropped to 84% which is lowest during 9 years.Nobody loses their jobS because the economy minister announced that government pledged 75 Euro to support families and companies Effect on US and Europe: During this pandemic about 20 countries represented 660 million of their workers for unemployment insurance. Countries which presently have low unemployment where the employer avoids the layoff are suffering from traversed wave of Covid-19. Some of the economist point out that the flexibility of the labor market of the United States is the strength. During the crisis of 2007 the increase in the unemployment is more than that of European union but rapidly decline from 2010 to 2013. This pattern was largely seen in Ireland, Spain, Greece and Italy. Whereas other developed countries have low rise which include UK, Canada, Australia, France, Germany, Norway and France. It will remain that how this pattern is seen in next months and years.

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