- Corona to destroy $ 3.6 trillion of global economy
- Corona has a greater impact on aviation, cinema and entertainment, tourism in India
According to the warning given by the United Nations, 25 million people will become unemployed due to corona worldwide. This will attack the global economy by $ 3.6 trillion. The United Nations said that this would deepen the economic and labor crisis. Corona has an adverse impact on many sectors in India including automobile, real estate, aviation, cinema and entertainment, tourism. Due to this, the jobs of millions of people working in these sectors are also at risk. In China, 5 million people lost jobs in January-February due to the economic side effects of Corona.
Huge loss to hotel and tour and travel sector
According to recruitment agencies, the corona virus may have the greatest impact on employees working in sectors such as hotels, tours and travel, food, construction and entertainment. According to the recruitment agency Global Hunt India, the coronavirus will have an impact on the unorganized sector, but if the situation remains the same for 2-3 months, recruitment in the organized sector may decline by 15-20%.
The condition of the electronic market can be bad
In the coming days amid the supply crisis for many industries in India, large scale unemployment is also being feared. Stocks such as mobile, electronics, home appliances, automobiles, dependent on Chinese components, are rapidly running out and industry experts say that if the situation remains the same for a month or two, work will stop at many levels from manufacturing to retailers. This can increase unemployment. According to Arvinder Khurana, president of All India Mobile Retailers Association (AIMRA), “If the supply is not normal for 15-20 days, then there can be trouble.” Workforce cuts may also occur across the entire supply chain ‘. The situation may be worrisome if it does not improve in a week or two. Most TV companies rely on 60% Chinese components and many are considering a 30-40% reduction in production. This will also affect the jobs of the people.
The aviation sector could suffer losses of up to $ 600 million
The aviation sector has canceled all its flights due to Coronavirus. SpiceJet chairman Ajay Singh has issued a statement saying that the aviation sector is under a lot of pressure. Many companies have sent their employees on holidays without pay, while some have also cut their employees salaries. The Center for Aviation, or CAPA, in its recently released report estimated that all airlines, including Air India, could incur losses of up to $ 600 million in the January-March quarter.
Danger hovering over the jobs of temporary employees
The biggest threat in India is to the self-employed, contract workers and daily laborers. In India, the most impact is on restaurants, real estate, aviation, cinema and entertainment, tourism, driving etc. According to an estimate, the next two quarters are going to be the heaviest on more than 4 million temporary workers in the country. Assocham and Global Hunt India believe that the most negative impact of Corona is on the service sector and especially the daily wage laborers. If the situation does not improve soon, the organized sector hiring may fall by 15 to 20 percent.
50 million people lost jobs in China in 2 months
China has suffered a lot due to Coronavirus and due to this, 5 million people lost jobs in China in January-February. The unemployment rate in China also increased to 6.2 percent in February from 5.3 percent in January. This damage occurred due to the shutdown of work and business activities in all cities including Wuhan, Shanghai.
45 lakh jobs can be lost in the second quarter in America
According to Bank of America estimates, the unemployment rate is going to double and about 1 million jobs are going to be lost every month. Accordingly, about 4.5 million jobs will be lost in the second quarter. Analysis company Oxford Economics has estimated that about 4.6 million jobs will be lost due to cancellation of visits.