Question

According to Blit (2020), Retail Trade sector in Canada ranks high on both the proximity (approximately 3.5) and the face-to-face (4.6) scales of worker exposure to coronavirus.1 These values suggest that high incentives exist to automate operations in this sector. Moreover, 70% of the workers in Retail Trade are in routine occupations, suggesting it may also be feasible to automate operations in this sector.

(a) Describe what pattern in the unemployment pool is likely to arise in this sector during 2020?

(b) in 2021-22 and (c) Describe any two distinct economic policies that can affect the patterns you have noted in parts (a) and (b).

Answer 1

The pandemic coronavirus has affected workforce labour and employment rates in every sector of the industry. Retail trade sectors in Canada as mentioned is facing the same problem and are suggested to to automate operations in this sector.

A) the pattern in the unemployment pool likely to be seen in this sector during 2020 is surely that unemployment rates are going to get high. Both due to temporary stoppage of work and also the the fear of of employees having Corona and coming to work have considerably reduced the demand of work labour force in this sector. Work from home and other facilities are usually not available because of the physical work need to be done. Automation will bring further unemployment because less and less number of employees will be needed to manage the process of automation and rest of the work will be done with the help of technology like, business process automation.

B) in the year 2021-22, if the automation process becomes successful in the sector it will definitely reduce the physical work labour requirement it and will increase unemployment rate which would be comparatively less than the year 2020. Automation also saves cost and hence Retail Industry will be attracted towards it if successful in this year.

C) two Economics policies that could help affect the patterns noted above can be:

1. The process of automation in the Retail Industry to be Limited by the government till powers so that unemployment rate does not increase and people do not lose their jobs permanently due to coronavirus. To keep some amount of labour should become compulsory for the Retail Industry.

2. Subsidies to be given to the labours who lost their job until they find a new job so that they do not run out of Living.

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