Jobs and Economy during Covid-19

The fallen economy

We can see a great recession is about to come. Even economically stabled big countries are suffering. The biggest industries are collapsing in front of our eyes. And, dragging people into great poverty. All these consequences are because of the Covid-19. Many companies went bankrupt and many people lost their jobs.

crisis

Some several industries and sectors are highly affected by this pandemic. Industries such as tourism, entertainment, retail, agriculture and the fast-food industry are several industries that are at the highest risk. The aeroplane companies are facing billions of losses due to the restrictions. Some countries have closed down their airports for nearly a year.

closed entities

So does the companies in the tourism industry. https://www.statista.com/statistics/1104835/coronavirus-travel-tourism-employment-loss/There are plenty of hotels that have stopped the main functions. And many boutique hotels have closed down. Because they don’t receive a single income and they find it difficult to retain in the market. Many tourist spots are abundant because people are not allowed to travel. And many of the employees in these sectors undergo salary cuts or sometimes complete loss of jobs.

loss of production

And many of these industries highly contribute to the economies in the countries. But due to the decrease in income and production, the Gross Domestic Production rates have radically decreased. Many countries are suffering from poor economic growth. And the business cycles in many countries are in the minus rates.

Changing economy with IT industry

But then again IT sector got many tremendous opportunities because of Covid-19. Online systems became the foundation of many things. And people who have a sound knowledge about IT got many job opportunities. And many IT-based companies are booming in the business world.

Booming IT industry

Even the businesses that were not using IT started to adapt to protect their market segments. Even the governments are pumping money into IT projects. This can rebuild the fallen economies. Many developed countries now have identified that the potentials in the IT sector and looking forward to work along with it.

There is a positive relationship between covid-19 and job losses. This is not new. It happened in the past as well. So what the governments can do is support the businesses to adhere accordingly and people need to be skilful in several areas and have several income-generating sources. And eventually, the countries will get back to normal. Until then stay safe and wear your masks!