Covid 19 had a tremendous impact on the labor market worldwide. So, here is a data-based overview of the current situation and forecasts.
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The global labor market in times of pandemics
Covid 19 outbreak at the beginning of 2020 was at the core of many economic troubles worldwide. Consequently, financial insecurity, layoffs, businesses shouting downs became the party of many people’s reality.
In countries where social protection systems were poorly developed or absent, millions of people are found without any source of income.
Unemployment is already skyrocketing in many, many countries. Data show that the number of hours worked in countries from all parts of the world fell dramatically by 10.7% at the second quarter of 2020 compared in the last quarter of 2019, i.e., the equivalent of 305 million jobs to full time (for a week of work 48 hours) according to Statista.
Moreover, the pandemic shed light on inequalities and the social divides that harshly affect the most vulnerable groups.
Multidimensional poverty and inequalities are therefore likely to increase considerably. According to revised World Bank estimates 70 to 100 million people could fall into poverty in 2021.
Sector at risk
Globally, around 38% of the workforce, some 1.25 billion workers, are employed in sectors very exposed to the current crisis’s consequences.
These sectors require a large workforce and employ millions of workers, often poorly paid
The four most hardest hit by consequences of the pandemic on the labor market and the fall of production are food and hospitality (144 million workers),
wholesale and retail (482 million), administrative services and sales (157 million), and the activities of manufacturing (463 million).
Tourism-related activities contribute largely to GDP and employment in many regions. They provide, directly or indirectly, around 10% of all jobs. Since the beginning of the COVID-19 crisis, international tourism has practically ceased.
The majority of the sector workers are employed by micro and small businesses and medium-sized enterprises that have been affected disproportionately. In the whole world, women occupy the majority of jobs in tourism, especially in the lower bracket wages in this sector.
Booming sectors during pandemics
However, the tech, digital, and remote selling sectors were booming lately, offering new opportunities for skilled job seekers. Online trading attracted many rookies with the extra time in front of the screen. Almost every good Forex broker lately can witness an increase in the number of freshly subscribed—no wondering since the profits could be tremendous.
The gaming sector is also at the upfront of profitable businesses. Before pandemics, it already exceeded profits compared to the music and cinema industries. The gaming industry is going to continue its growth. According to Statista, the global market value of gaming reached 138 billion in 2021.
The pandemic times brought some growth and space for the business maneuver, while the others sank into bankruptcy. As we are approaching the middle of 2021, many questions remain the same and without the answer. However, one thing is for sure: the work market landscape is changing, and the big challenge for many to find their place in the turmoil of ever-changing global events.