Amidst the horrific effects of the Novel Coronavirus Pandemic, there is one danger that we are unable to stop in the economy from hitting us hard and that is the closure of non-essential businesses. Not only in the advanced nations, but this unfortunate scene is predominantly witnessed across every economy today. In the past 3 weeks, 17 million people have reportedly filed initial claims for their unemployment insurance which is allegedly above 15%. This halt of the non-essential businesses serving people have shown us how reliant the economy has been on the businesses that were based on human wants mainly and not needs. Also, in the sectors like hospitality, leisure, tourism and energy this phenomenon of unemployment has seen a spiking steep rise after an overnight transition of slow growth rate.
In this blog today, Testofy will highlight on two things:
1) The persistent unemployment trends of the economy during Covid-19
2) The hiring trends after this pandemic
The persistent job cut trends of the economy during Covid-19
- Hundreds of millions of people could be left without work due to the impact of COVID-19, the UN’s work agency warns.
- Current G7 job cut totals vary widely, from 30 million in the United States to 1.76 million in Japan.
- Several European governments have softened rise in unemployment with generous wages subsidies
The global outlook of United Nations does not look positive in this case, its International Mabor Organizations predicts 1.6 billion informal economy workers could suffer “massive damage” to their livelihoods. In the second quarter of 2020, COVID-19 may cost the equivalent of 305 million full-time jobs.
Here’s a glimpse of the advanced G7 nations collectively reflecting their job cut curve
The early estimates of the unemployment induced by Coronavirus predicted to send the urban job losses to a soaring 30.9%. In reality, until now, it has reached 23.4%. Experts opine that nearly 50 million people have already lost their jobs in the rising economy of India. Since many of the people have been leaving for their homes across the country, it has been experiencing a steep drop in the employment rate.
Even if we consider that this job loss rise is due to lockdown, can we be sure that it will be removed once the lockdown is off? No, even at that point, job loss will remain the same, if it does not increase.
The global economy does not provide a substantial safety for casual workers when the economic flux continues for too long. The people who will be living without income will hence consume less which will further have a lasting effect on the economy.
As per the United Nations, here are the most adversely affected sectors of the global economy that had the worse hit in this recession:
- food and accommodation (144 million workers)
- retail and wholesale (482 million)
- business services and administration (157 million)
- manufacturing (463 million)
But whatever the case is, right now, the 1st priority for every country is to save the frontline workers:
Today, globally there are 136 million healthcare workers who are tirelessly working day and night as the frontliners of the economy. COVID-19 contacts in the workplace and the biggest example for this has been prevalent with hundreds of medical frontliners contracting the virus and many of them dying out of it.
Not only the medical frontliners, but many workers are also affected in this war against covid and to support their families for the unfortunate loss requires package compensation from the government.
The unemployment packages from the Government stand as a short-term solution and without a set of appropriate policies, it will be impossible for the economies to get back on their feet with a strong workforce.
The hiring trends in the days upcoming: What to expect and not
The future action course of organizations in terms of hiring at this stage is uncertain. Also, the social distancing policies are going to change the way we interact and communicate professionally. The very 1st impact on this is evident already with the concept of WORK FROM HOME. This phenomenon has fundamentally transformed the way we work, based on what work we do.
Also, to save the employees from losing out from their jobs alongside reeling in the benchmark returns from investment, many companies are taking up new roles to survive in this existential crisis.
- Employees of apparels companies like New Balance and Brooks Brothers are producing gowns & surgical masks
- Tesla, General Motors and Ford are producing ventilators from car parts rather than producing car parts from plummeting market demands.
There are 3 ways in which the professional job market can be saved-
A. Making Work Portable
Rigid job constraints are things of past. Now, businesses require solving challenges in real-time. It is the new normal for teams to operate outside of the current organizational structure and react accordingly to the critical challenges. Work From Home, remote conference, remote management will now be there forever.
B. Leaning On More Automation
Organizations will be more inclined towards making automation a mandatory part of their work structure and flow management. With lesser man power and more work load to deal with, automation of processes and departments will be a welcome change.
C. Cross-Industry Talent Exchanges
The professional ecosystem will require expertise from other thinkers as well. Coronavirus is an unprecedented occurrence and manoeuvring through this crisis in this economic turmoil, requires new measures, which can only be possible with exchange of talents & thoughts of leaders in the common industry domain.
Testofy’s 11 Tips For Upcoming Hiring Scenario
- Adopt to the technologies and solutions that make establishing communications and gauging productivity an easy work.
- Make your hiring digital, cloud-based and remote for accurate recruitment of the right talent.
- Focus more on extracting the best from current workforce because hiring new talents can be costly and time-consuming.
- Implement virtual interviewing technology to your recruitment process
- Hire new or train existing candidates to work for new roles in new areas
- Invest in agile solutions for assessments of existing and new workforce
- Make use of applicant tracking system
- Streamline the recruitment marketing efforts through many online platforms
- Align the team to design a proper recruiting strategy with proper screening criteria
- Prepare a ‘now hiring’ strategy before this crisis ends
- Build a pipeline of solid talent resumes for onboarding the best talents.
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