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The Coronaviruses Effect on the Economy
Corona, English Audio, The Grind

The Coronaviruses Effect on the Economy 

The Coronavirus pandemic is forcing the shutdown of much of the global economy as we know it; and its byproduct, an unemployment rate that is rising exponentially.

The recession created by the pandemic is making it near impossible for companies to maintain non-essential staff. In order to weather this crisis, companies must reduce labor cost.

This sudden shift in the tectonic plates of the economy will have a lasting effect. This crisis is likely to reshape the economy permanently.

Inefficiencies and under-achieving employees in time of crisis force employers to make the hard decisions. Down sizing and layoffs are inevitable, and many of those positions are not likely to return. And after having to cut back, if they recover, most companies are likely to move forward with much less.

An example of one sector of the economy hit hard by this pandemic is restaurants. In good times restaurants have a high rate of closures. Restaurants are a labor-intensive, low-margin business depending on daily customers. Not only are they being impacted by the social distancing and lock down decrees, but also by the farming and produce industry struggling with transport logistics and loss of migrant workers.

The Coronaviruses Effect on the Economy2

For companies utilizing office locations, the pandemic has forced the digitalization of their work. The expediencies they have to resort to, such as telecommuting and teleconferencing, if they work out, will set a new precedent. Companies will be able to consider cutting cost on office space and cutting out costly expenditures like transport allowance. In the long run, that will mean fewer jobs for transportation workers as the volume of commuters declines. Once things change, rarely do they return to their previous state. However, this change should not be seen as negative. This is a time to be creative and explore possibilities. Take this time of social distancing and isolation to focus on you and your future, maybe this is the break you needed!

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