Question

I'm writing an essay for an Economics course. The essay is premised on the impact that the COVID-19 pandemic has had on labor demand.

Could you explain this impact?

Could you make a graph or two visualizing this impact?

Answer 1

Dear Student,

Below are the answer to your question

Below are the industries those goods / service demand and supply are badly affected due to Corona virus

and the severe decrease in labor demand

1.Tech- Companies

Coronavirus has a mixed impact on tech companies. With work-in-isolation policy being a mandate for employees, there are companies that make the most of it in terms of profit. For example:  

· Slack Technologies Inc. confirms that due to the global fallout from COVID-19, there is a surge of interest in workplace-collaboration software.

· Zoom, an enterprise video communication solution is one of the most downloaded business apps in the US on Apple Store in the 2nd week of March 2020 (according to App Annie).

2) Insurance

The rise of coronavirus cases may end up with the demand for certain insurance types. As the COVID-19 virus continues to dominate the headlines, there is a hike in demand and awareness about insurance plans for health and life coverage.

3. Sports & Entertainment

Movie theatres are temporarily locked down in parts of India, amidst the COVID-19 spread.

4.Travel & Tourism

Airlines are drastically cutting flights and flight rates as more people have decided not to fly during the outbreak. According to the International Air Transport Association (IATA), global airlines may lose $113 billion in sales if the coronavirus continues to spread at this pace

* Agricultural commodity market

1) Reduced demand

Reduced demand for commodities like corn, beef, wheat, timber and vegetable oil can alleviate pressure on forests, and extractive industries are less likely to invest in exploration or new projects during a recession. The precipitous decline in oil prices this year, for example, has already cut exploration budgets in Brazil by 20%.

2) Decrease in price

Food and Agriculture Organization said that food prices have dropped overall, including a 12% decline in the vegetable oil price index.

3) Loss of Export Business

“Eventually, there will be less commodity-led agricultural deforestation and timber-led forest degradation, as aggregate demand in export markets is reduced.Also the export business in vegetable sector also impacted drastically

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