Covid-19 induced recession projected to impact careers of 2020 graduates for a decade, according to leading macroeconomic influencers

GlobalData Thematic Research 21 May 2020 (Last Updated May 21st, 2020 07:30)

Covid-19 induced recession projected to impact careers of 2020 graduates for a decade, according to leading macroeconomic influencers

Unemployment levels have reached new highs over the last three months since the lockdown was initiated in the US. As millions of students graduate during this uncertain time, their future job prospects remain bleak. Careers and earnings may be impacted for graduates.

Konstantina Beleli

Konstantina Beleli, an economist and journalist, shared an article on how million of students in US are graduating in one of the worst job markets witnessed since the Great Depression.

The article notes that the unemployment rate in the US currently stands at 14.7% but for people aged between 20 and 24, the rate increases to 25.7%, according to statistics provided by the Bureau of Labor Statistics.

Research suggests that the careers and earnings of these students are expected to be impacted for more than a decade.

Ian Bremmer

Ian Bremmer, political scientist and author, shared an article on how 29 million of people in Latin America and the Caribbean who overcame poverty are at risk of being pulled back due to the economic downturn caused by Covid-19.

Latin America’s economy is expected to be most impacted by the recession than any other region. The economy is expected to contract by 5.2% in 2020, undoing the social and economic progress made over the past two decades.

Daniel Lacalle

Daniel Lacalle, economist and author, shared an article on how consumers in the UK are creating an isolation economy worth £13bn ($15.7bn) amidst the Covid-19 lockdown. Research from Legal & General, an insurer indicates that consumers are spending an additional £247m ($298.7m) on food, groceries and entertainment during the lockdown.

The overall consumer spending, however, has declined by 31% per person due to the shutdown of the economy. The pandemic is expected to create a fundamental shift in consumer spending pattern even after the crisis.

Timothy McBride

Timothy McBride, Bernard Becker Professor at Washington University, shared an article on a survey conducted among chief financial officers (CFO) in the US. Approximately 60% of the CFOs opine that the US economy may not return to normal until 2021.

Further, the CFOs surveyed were focussed on cost cutting and near-term survivability rather than growing their business in the current economic downturn.