Welcome everyone, at Yognut. We hope you all are safe and following the rules as suggested by our government and PM Narendra Modi. Today we want to draw your attention to the Rise of unemployment due to coronavirus in 2020. Coronavirus which is almost spread on entire earth people are in lockdown in many countries and facing many problems and one of such problems shut down of companies and factory rises unemployment security.
Today the whole world is facing many problems due to corona but they are doing their best to fight against it. We salute everyone policemen, doctors, nurses, and everyone who is helping and contributing even from home or on the battlefield. But due to global lockdown, big companies and factories are shut down they are facing a financial crisis so they start reducing the number of employees which leads to unemployment rises.
The surge in unemployment rises due to the coronavirus (COVID-19) shatters all the previous records. In this time, across the world more than 140 countries announced lockdown and this affects shake-out the world’s economy because its labor market is just about to vanish.
The major effect is being observed among the manufacturing companies where daily wages and labor section is cut down at a large scale. Such sections are Automakers, smartphone makers, consumer electronic firms, appliance majors, real estate, and many others create unemployment rises. Many of big IT giants like TCS, Infosys, and others impacted by reduced technology spending by clients across the globe due to Coronavirus lockdown. Many big software companies of Japan and the US including Apple are going to shift their manufacturing plant out of China due to huge losses.
According to ILO (International Labor Origination) more than 25 million jobs could be lost this is just like a black hole for the economy. Coronavirus pandemic is disrupting global supply chains and international trade, nearly 100 countries closing national borders during the past month, the movement of people and tourism flows have come to a big halt.
The estimated cost due to coronavirus outbreak is about $1-2 trillion in 2020, according to the UN Conference on Trade and Development. The oil price decline of 50 percent against a baseline of USD 61 per barrel. According to the UN The global economy could shrink up by 1% in 2020 and cause a rise in unemployment rises due to coronavirus, whether the previous forecast of 2.5 percent growth.
List of sectors where economy fall:
|Percentage of fall
|Percentage of fall
|35% fall reported in the restaurant business
|35% of apparel export orders come from Europe
|Consumer Durable and Electronics
|15% decline was seen in mobile shipments in Jan-March
|Poultry and Seafood
|30% fall reported in demand for chicken in the past three weeks
Impact on Indian Economy due to corona
Due to coronavirus lockdown, India is also suffering from a huge loss because it imports our country is dependent on China is huge. About the top 20 products in which India imports have a major account by China. Due to lockdown, both export and import are hugely affected. Many companies, factories, and business sectors are shut down they are already in loss so they start seeking the jobs of daily wage laborers and lower-class employees. This creates an uncomfortable situation for employees as unemployment rises.
But the Indian government and PM Modi make requests private sector companies not to fire anyone from job and government take initiative steps to help companies to recover themselves. Many Indian companies join their hands to fight against this pandemic and supporting government policies. From the news sources, we find that about 1000 companies are leaving China after huge loss and many of them are trying to shift the plant in India, this is good news because they are going to create a lot of jobs which reducing the unemployment rises due to Coronavirus.
Here are some sector wise data affected by corona virus
- Chemical Industry:- In the chemical industry India imports about 20% of raw materials from China and due to corona lockdown it disrupts the supply chain. China is also a major supplier of indigo for denim. This effect creates a lot of unemployment. However, Its an opportunity for India to diversify its market and create a new job opportunity.
- Shipping Industry:– Due to the Coronavirus outbreak, the business of cargo movement providers has been declined by 75-80% in dry bulk trade per day.
- Auto Industry:- This sector’s data can vary upon the extent of business with China. India is also having huge manufacturing power but due to lockdown here and in China both can create a result of 8-10% contraction of India auto manufacturing. Daily wage workers are hugely affected by unemployment in this industry.
- Pharmaceutical Industry:- India is one of the top drug exporters in the world. But, the PhRMA industry heavily relies on the import of raw material. Due to the Coronavirus outbreak it will be going to impact a lot. But, in this situation, India is exporting an important and helpful drug hydroxychloroquine to many countries to fight against corona disease.
- Textile Industry:- Due to the Coronavirus outbreak, several garments/textile factories in China are shut down temporarily and this reduces the exporting demand of fabric, yarn, and other raw material. This disruption creates unemployment rises even in the small sectors.
- Electronic Industry:- China is the major supplier of electronic products and raw material used in the electronic industry. Due to disruption in supply chain India is also affected.
- Tourism:- Due to coronavirus outbreak tourism industry of India suffer huge loss because the inflow of tourist from China and Asia is stopped and this also creates a lot of unemployment rises for people who depend on the tourism industry.
Check Also: 5 Main Reasons for Global Unemployment
The initiative has taken globally by UN and Big companies across the world
One good news is delivered by United Nations Secretary-General Antonio Guterres, together with three officers he launched a $2 billion global humanitarian plan to help the world’s poorest countries for fight against Coronavirus.
After the UN General-Secretary urged The G-20 leaders to come forward to provide immediate liquidity relief to the private and financial sector in the developing world in the form of trade credits, liquidity lines, and guarantee schemes & reduce unemployment rises due to Coronavirus.
The World Bank Group has also approved an increased $14 billion package of fast-track financing to assist companies and countries in their efforts to prevent, detect, and respond to the rapid spread of COVID-19. United Nations Global unites over 10,400 companies in 166 countries to encourage businesses to support workers in reduce unemployment rises due to CoronaVirus.
Many initiatives are taken by the Indian government to recover the loss and uplifting the rate of unemployment rises due to Coronavirus. Such initiatives are made some important changes in foreign policies and relief to foreign investment in tax to establish factories and centers across the country. About more than 300 companies are approaching India to invest and they are dreaming of India as a big manufacturing hub.
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