View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Comment
July 8, 2020

Unemployment rates caused by Covid-19 to remain high until 2021, according to leading macroeconomic influencers

Unemployment rates have reached unprecedented levels globally due to the Covid-19 pandemic. The impact of the pandemic on jobs is ten times higher than the 2008 global financial crisis. Despite the job retention schemes and unemployment benefits offered by governments, unemployment rates are not expected to recover until after 2021.

Miles Corak

Miles Corak, professor of economics at The Graduate Center, shared statistics related to the job retention schemes implemented across various countries from an article published by the Organisation for Economic Co-operation and Development (OECD).

The article details how the Covid-19 pandemic is leading to a collapse in economic activity and increasing unemployment rates, which is expected to reach 12% globally and 10% for OECD countries by the end of 2020.

Corak noted that these job retention programmes have not succeeded in Canada as businesses have not adopted them. He added that temporary layoffs are turning into permanent layoffs resulting in an increase in the duration of unemployment and decline in earnings.

Howard Archer

Howard Archer, chief economic advisor to EY ITEM Club, shared an article on Bank of England’s chief economist Andy Haldane’s views on how a second wave of Covid-19 will determine the future for the UK economy.

Haldane noted that the UK economy is recovering slowly with increase in consumer spending and reopening of businesses. He added that the intensity of a second or third wave of Covid-19 will determine whether this rebound will continue.

Fausto Panunzi

Fausto Panunzi, professor of economics at the University of Bocconi, shared an article on the revival of pawnshops in Italy. With banks declining to extend loans and government aid packages set to end next month, Italians are turning to pawnshops for loans.

Pawnshops have witnessed a surge in activity from 20% to 30% after the end of the lockdown and expected to increase further as aid packages come to an end. With the Italian economy expected to contract by 13% in 2020, pawnshops are projected to provide a vital service for working class people desperately in need of money.

Joe Sarling

Joe Sarling, an economist and head of research and analysis at Homes England, shared an article on how the 2008 recession has caused workers to shift and excel in other sectors. The article notes that the trends from the 2008 recession can be used to highlight how to quickly transition to other sectors and earn jobs.

The article notes that approximately 2% of workers in the hospitality and food services sectors moved to human resource roles, while 3.1% of retail workers shifted to accounting and finance roles by acquiring new skills. These trends highlight the re-skilling opportunities for labour forces to recover from the current Covid-19 recession.

Related Companies

Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The pharmaceutical industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU