It’s obvious that the COVID-19 pandemic, and specifically the precautionary actions the government has taken, has a large impact on the lives of every individual globally. With no one really knowing how much worse this can get, all we can do is try to take things day by day. 

However, is that really an option for everyone? Many want more answers. Both employers and employees need to be able to brace themselves for the lasting effects the pandemic will have on their job or business. 

 

Unemployment predictions: 

The ILO (International Labour Organization) predicts “a rise in global unemployment of between 5.3 million (“low” scenario) and 24.7 million (“high” scenario) from a base level of 188 million in 2019. By comparison, the 2008-9 global financial crisis increased global unemployment by 22 million” (ILO 2020) 

Yeah, I know. 

However, an “international coordinated response” that focuses on protecting workers in the workplace, stimulating the economy and employment, and supporting jobs and incomes, could potentially decrease the impact on global unemployment.  

Still, the increase in unemployment will translate to a fall in consumption of goods and services. Meaning, if you own a business that was deemed “unessential” during this time, unfortunately, chances are when you do open back up, business might not be “booming” like one would hope.  

 

Being an employer: 

With confused and worried employees, business-owners are being asked a lot of questions, many they might not know the answer to themselves. Are you an employer? Are you wondering what you can do to put your employees a little more as ease? 

There are so many things up-in-the-air right now, it seems like planning is not an option—at least not for the far future. However, as an employer, it is actually very important to set a temporary strategy to keep things moving, while staying safe.  

Jennifer Skeotch, a writer with expertise in employment, had these following suggestions.  

• Have a team within your organization analyzing and considering all the potential consequences of the spread of COVID-19, including your workforce. 
• Communication is key. Once you have formulated a plan, even if it is a temporary one, communicate that with your workforce as soon as possible.  
• Emphasizing the fluid nature of the situation to all your staff is important because it allows employees to be prepared for ongoing changes as the pandemic develops.  
• Keep dialogue going— as soon as any changes are made, communicate those as swiftly as possible to minimize workers’ uncertainty and concerns. 
• It’s understandable that not every employer is in the financial position to pay their workers who are sheltered in due to the virus. Fortunately, many employers have pushed to continue in some form while still being safe, like having employees work from home.  

This option not only benefits the temporarily “non-essential” businesses financially, it also allows many to continue being able to financially support themselves, therefore helping the economy.  

 

What about the bigger concerns business-owners and workers are facing? 

The concern about wealth inequality, as well as the pull-back on social consumption causing a likely drop in certain types of spending across the economy—yeah, all of that? That’s where the government’s “coordinated measures” step in.  Hopefully.  

While there are still many economic concerns, especially for the devastated workers close to or below the poverty line, or those who are not able to continue making money at home, there is only so much a business owner can do right now. 

 

Reference:

Almost 25 million jobs could be lost worldwide as a result of COVID-19, says ILO. (2020, March 18). Retrieved from https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_738742/lang–en/index.htm 

Written by Marusya Madubuko