The continuous COVID-19 pandemic has caused an unparalleled economic catastrophe not just in the United States but around the world. The significant progress made in household income and poverty reduction over the previous few decades is at risk of being undone due to the higher unemployment rates induced by the COVID 19 pandemic. Many nations’ strong containment measures put in place to flatten the growth in contagion have put a significant brake on most economic and social activities, leaving many people unemployed. Furthermore, households involved in informal services and labor-intensive enterprises are at risk of losing their jobs due to slower demand and social distancing tactics (Hossain, 2021). Evidently, the COVID 19 pandemic and other disturbances have exacerbated the detrimental impact on employment, average earnings, and livelihood in rural and urban regions.
In the united states and the world at large, millions of workers have been rendered jobless due to the COVID 19 pandemic. According to statistics released by the International labor organization, as of the end of the year 2020, there were unprecedented global employment losses of 114 million jobs due to COVID 19 (ILO, 2021). ILO (2021) also noted that Unemployment rates were higher for women than for men and young people than for older workers. The increased rates of Unemployment in the world have been significant due to the stringent measures put in place by different governments to curb the spread of COVID 19. Consequently, such efforts have resulted in different scenarios that have caused the increase in the unemployment rate, such as; workplace closures and unprecedented global working hours losses.
Unemployment as a result of COVID 19 has different implications. One of the implications is on the life of an individual. Unemployment as a result of COVID 19 has made individuals worldwide who have been rendered jobless to be susceptible to experiencing several challenges. These challenges have been seen to be exacerbated the longer an individual remains unemployed. Some of the common disadvantages for individuals who have been rendered jobless due to COVID 19 include; reduced income, health problems, adverse family effects, and mental health challenges. Another consequence of the increased rate of Unemployment caused by COVID 19 is on society. High unemployment rates as a result of COVID 19 have led to higher poverty rates and poor neighborhoods that amplify the societal impact of Unemployment. Countries with high unemployment rates due to COVID 19, such as African countries, have been exposed to low-quality housing, limited access to public transport, and underfunded schools. In addition to the effects of Unemployment as a result of COVID 19 on individuals and society, Unemployment as a result of COVID 19 has also directly affected the economy of different countries. In the united states, for instance, the increased unemployment rate due to COVID 19 has led to a drop in real GDP growth by an astonishing 31.40 percent. Generally, Unemployment as a result of COVID 19 has had massive implications on society’s social and economic aspects.
Given its negative implications on the society, some measures must be taken to mitigate the impacts of unemployment as a result of COVID 19. Various governments, including the United States government, have executed a combined fiscal and monetary stimulus (Hossain, 2021). However, a jobless recovery might jeopardize socioeconomic progress, particularly in a nation with many marginalized people who rely on their daily income. More sector-specific stimulus is essential to safeguard informal jobs while simultaneously creating low-skill, low-wage opportunities (Hossain, 2021). Different governments must also give extra incentives to labor-intensive industries and subindustries. These include agriculture, food processing, and retail trade. Generally, given the far-reaching impacts of Unemployment as a result of COVID 19 and mindful of the fact that COVID 19 is here to stay, it is incumbent upon the governments of different countries affected by increased unemployment rates to put in place measures to help reduce the rate of Unemployment.
In conclusion, COVID 19 has had far-reaching effects on employment, household income, and livelihood in rural and urban regions. Therefore, it is essential to come up with plans of how to curb this problem and rebuild the economy. History teaches us that crisis allows us to rethink and change for the better. In the future, it is therefore essential for the different governments in the world to develop more robust economic action plans to avoid the fur reaching effects of Unemployment as currently being witnessed in most of the countries in the world as a result of COVID 19.
References
Hossain, M. I. (2021). COVID-19 Impacts on Employment and Livelihood of Marginal People in Bangladesh: Lessons Learned and Way Forward. South Asian Survey, 28(1), 57-71.
ILO (January 25, 2021) ILO Monitor: COVID-19 and the world of work. 7th edition. https://www.ilo.org/global/topics/coronavirus/impacts-and-responses/WCMS_767028/lang–en/index.htm
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