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Student’s NameProfessor’s NameCourse NumberDate Unemployment due to Covid-19COVID-19, since the spread of the virus worldwide and a declaration of an international pandemic, drastic measures were implemented into the work and functioning of many countries. Quarantine, isolation, and government lockdowns have shut down many private businesses and industries, including government facilities. The virus itself has severely affected healthcare worldwide and has brought a high demand for medical supplies and medical staff. It has been stated that “the current containment measures are affecting close to 2.7 billion workers, representing around 81 percent of the world’s workforce” (UNIDO, n.p.). The most affected are travel and tourism because they heavily depend on the interaction of people being in the same place and their transfer from one country to another. Businesses are being shut down because they are forbidden to receive clients and the private sector and stocks are deteriorating.Declaring a state of emergency and government lockdowns to prevent mass crowds has caused unemployment rates to rise. The macroeconomic model of natural unemployment rates shows that a country cannot achieve full employment because it is not feasible when considering the natural notion of labor in the long run (Kagan, 2020). So, a natural rate of unemployment includes the fact that employment is fluctuating throughout the life of some specific person and the lives of all people, who are either in university or such. Currently, due to the pandemic, the unemployment rate has risen due to the fluctuation of employment and the impossibility to attain a job that does not exist. Government lockdowns demand that private businesses temporarily shut down causing the once existent job positions to close. Some businesses have transferred their work online and are trying not to cut off employees, while others needed to fire staff to escape bankruptcy.The macroeconomics of the pandemic will reside on the aggregate-supply and aggregate-demand macroeconomic model. This means that the changes of the AS/AD macroeconomic model are caused by changes in regular supply and demand and that the supply and demand availability or supply of a certain product is diminished in some branches due to the lack of manpower while the desire is still the same. The economy thus shows a reduction in the growth of GDP/decline in GDP and does not include any non-economic form of suffering (Jonung & Roeger, n.p.). For those who are still demanding but are unemployed, some non-government regulated compensations in companies provide sick leave in case of family COVID-19 emergency or paid medical and family leave in case of a child whose daycare or school is out of work (the USA, n.p.). The funds for these compensations in small businesses will come from the government.The sudden jump in unemployment rates due to safety and quarantine measures has led to losses in income. This has caused the US economy to release a rescue package valued at 2.2 trillion dollars to compensate for some of the losses, but will not help recreate the lost employment (De Koning, n.p.). Because of this, to return the economy and natural unemployment rate to its previous state will take years and will demand more than the government to help. The current situation also shows a significant drop in shares that will take years to return to its previous value. The only benefit that the government lockdowns have is that it benefits to nature and this could have a positive effect on the economy in the future for tourism and traveling that will, amongst other industries, flourish. It is necessary to return the previous natural unemployment rate because it shows a stable unemployment rate. The financial crisis is currently of global proportions and its long-term post-pandemic effect is still not declared and remains uncertain. The current international economy is possibly facing a greater crisis than the Global Financial Crisis of 2008 and is facing “its worst recession since the Great Depression” (UNIDO, n.p.). This is caused by the previously stated quarantine measures and strict lockdowns worldwide and is furthermore causing a great decline in the AS/AD macroeconomic model which furthermore causes a decline in GDP. Because of the ongoing financial crisis, banks are trying to keep their businesses going and have turned to give out loans to private businesses that need funding to endure quarantine measured and puts the business at risk more than the bank itself which means “that the banks can go after the personal property of the owner of a firm if their business goes under and they cannot afford to pay off the debt” (Verity, n.p.). The personal property includes anything from savings to shares and holiday homes even though the main property and living space of the business owner remains intact. All things considered, the coronavirus pandemic has had a severe impact on the global economy. Its effect on healthcare and the traveling and tourism industries are most significant because they are the most off when it comes to the comparison of unemployment with natural unemployment rater. Where the healthcare system is overwhelmed and in need of more material and healthcare professionals, the travel and tourism industries are cutting off more and more employees due to quarantine measures and government lockdowns worldwide. For the economy to recover from quarantine, it will take years and a lot of effort to return to at least a somewhat similar state from last year. The battle with COVID-19 actively deteriorating the economy. Thus, the outcome is still uncertain and the necessary recovery steps are postponed indefinitely.Works CitedDe Koning, Kees. Rebuilding the U.S. economy after the coronavirus pandemic: A new home equity release method (HERM). Munich Personal RePEc Archive (MPRA). 2020, mpra.ub.uni-muenchen.de/99459/.Jonung, Lars & Roeger Werner. The macroeconomic effects of a pandemic in Europe - A model-based assessment. European Economy European Commission. 2006. ec.europa.eu/economy_finance/publications/pages/publication708_en.pdf. Kagan, Julia. Natural Unemployment. Investopedia. 2020. terms/n/naturalunemployment.aspUSA. Disaster Financial Assistance for Workers and Small Business Owners. . 2020. disaster-help-workers-businesses.UNIDO. Coronavirus: The economic impact. United Nations Industrial Development Organization. 2020. stories/coronavirus-economic-impact. Verity, Andy. Banks under fire for coronavirus loan tactics. BBC. 2020. news/business-52043896. ................
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