Question

The corona virus (covid-19) pandemic has affected all economic activities in both developed and developing economies. From a labour economics perspective, explain and analyze the implications of this pandemic on ANY labour market of your choice

Answer 1

covid-19 pandemic has been the biggest tragedy of 21st century.it has stopped the growth wheel of the economy.from tourism to airlines,and from production sector to service sectors all have been affected badly by this pandemic.

we can study the impact of covid-19 concerned with various labor market for instance the labor market concerned with automobile sector.

the automobile sectors have been facing a recession globally.there is lack of demand for the new car in the economy.the automobiles are facing lack of demand as a result they are declining there production and thus there is unemployment in the economy.the impact on labor market be analyzed as below-

1. UNEMPLOYMENT-the major impact on the labor market is the adverse impact concerned with the unemployment.this is the most destructing and long term problem causing impact of this pandemic.more and more labors are getting termination letters concerned with their jobs whether they are concerned with lower level or top level management.
2. RECESSION-due to this the market is facing recession concerned with the demand side  and the firms are not ready to produce and it is responsible for low demand,low production,low level of income,low level of savings and thus vicious circle of poverty.
3. BURDEN OVER GOVERNMENT-government has to pay many allowances and have to make huge expenses,transfer payment(unilateral payment) which is creating a burden over the government.due to economic recession the Tax revenue has also been declined.
4. MANIPULATION OF LABORERS-the supply of laborers have been increased in the economy,and if any sector is executing the production process then it is manipulating and exploitation the laborers by paying lower wages possible.
5. ECONOMIC GROWTH BARRIERS-unskilled,,unemployed labors and excess population has become a liability over the economy.they makes the economic growth slower and this is very serious problem in this critical situation.