COVID-19 has changed the economic landscape beyond what any of us could have imagined before the start of 2020.
Change is constant in business and financial settings. But the speed with which the COVID economy devasted the US is unprecedented.
No sector has been immune, and the statistics only give a small glimpse of the effects this pandemic has had on personal lives.
However, it is possible to understand the economy trends and how they are likely to affect our lives in the coming months.
Unemployment Trends
Aside from public health, arguably the most destructive effect of COVID-19 has been on employment. The economy data shows a huge rise in unemployment statistics since the beginning of the pandemic.
It is unlikely there will be a significant improvement soon.
For those who have lost their jobs and are struggling to find new employment, workers need to know urgently is the economy good or is the economy bad?
As each week goes by, the situation seems to become more severe, and a solution is crucial if we are to save livelihoods. This problem is particularly harsh in the retail and hospitality sectors, where jobs are generally low paid.
Business Models
Even before the COVID-19 pandemic, it was clear business models would change. The shift from brick and mortar businesses to online services was on the rise, and changes would inevitably occur in the years to come.
The pandemic has accelerated this process by several years. Many larger employers have seen the economic data, deciding there is no need to return to traditional working practices.
This changing scenario is likely to be a key issue in 2021 and it’s crucial to learn more each day to stay at the forefront of the new working environment.
Many businesses have continued to operate while employees have been working from home. In an era when every commercial advantage is crucial, global companies see they can save on office costs by allowing staff to work online.
By using technology to reduce unnecessary outgoings, businesses can become more competitive. Employees can also benefit as they no longer need to commute, saving travel costs, and enjoying more time at home.
COVID Economy Business Infrastructure
While businesses saving money that they can use to benefit their customers might seem like a good scenario, there is a downside. For many years cities have invested in building large commercial buildings.
If employees work from home, there is no need for businesses to pay landlords for office space. There is potential for these huge spaces to become empty shells and for landlords to go out of business.
Every major city’s transport infrastructure also relies on hundreds of thousands of employees paying to travel for work each day. Without this income, there is less money to maintain the system, impacting the wider society.
States need to decide how to recover this lost income, without placing further burdens on their citizens.
Stay Up to Date
The COVID economy is a rapidly changing situation. Stay in touch with the latest news by checking in with us each day.