At the end of 2019, scientists began to observe the outbreak of the coronavirus that causes COVID-19; they first identified the virus around the city of Wuhan, China. COVID-19 has infected more than 170 million people worldwide, causing more than 54 million deaths worldwide. The ongoing spread of the coronavirus has become one of the biggest threats to the economy, largely because many people have lost their jobs en masse.
The effect of COVID-19 on the demand for labor, with the increasing pressure of the lockdown regulations, caused many businesses to close and many workers lost their jobs, with some of the businesses not being able to open again due to the loss that they faced during the start of the lockdown. Businesses have had many losses due to COVID-19 as people could not afford to buy the goods and use the services they used before the COVID-19 pandemic took place with these scenarios. Many workers were retrenched to cut costs as many businesses were running at losses. The demand for labor has decreased as businesses cannot afford to pay a lot of employees. The impact of COVID-19 has caused a major decrease in employment across all races, with the main groups being the youth, aging workers, and women. The lack of customers due to COVID-19 has caused a shift in labor as people want things delivered to them instead of buying them physically in stores. The adjustment of positions in businesses caused the gradual reduction of many positions, which led to the loss of jobs.
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Measures that were enforced in fighting against unemployment started with the government's introduction of packages for small and medium enterprises. The package was a debt relief fund that would help all small and medium businesses that were in financial debt, but people were only receiving the fund if their losses were due to COVID-19. The Resilience Facility and Business Growth were financial assistance aimed at helping local businesses that need stock, capital, equipment financing, and order financing so that the businesses can still produce essential goods and services that the community needs. The Employment Tax Incentive worked to reduce youth unemployment by encouraging business owners to start hiring young people in their businesses. Their target group was 18-29-year-olds who needed to be recruited by employers as they wanted employers to pay less PAYE to SARS if they appointed more young people. There is also the COVID-19 Temporary Employer and Employee Relief Scheme that has become an important addition to the Unemployment Insurance Fund as it provides financial benefits to all workers who have lost their jobs due to the effects of COVID-19. There was compulsory sickness benefit funding where workers who were in quarantine would receive 14 days' pay if workers could produce a medical certificate to be entitled to it. Bereavement benefits due to COVID-19 can be applied for so that the family can get financial benefits.
Summing up, the impact of COVID-19 on the labor market has caused serious upheaval in many countries around the world. The way it has changed the working environment, with employees being retrenched and businesses having to close down, made a huge impact on the unemployment rate to the extent that some workers had to take salary cuts just to stay in their jobs. Both the private and public sectors have been affected. The government has been assisting the nation with incentives that have been beneficial to businesses and people, but the businesses and people also had to meet the government halfway by following the regulations that came with these benefits. The struggle with this virus has hit the economy hard, making job creation difficult, but the government has made job creation a priority as the fact there are many unemployed graduates in the country and even informal jobs are scarce. The aim now is for businesses to regain their momentum and work with the government to create jobs and save the labor market before it's too late.
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Job Loss Due to COVID-19 as an Economic Problem: Essay.
(2024, January 30). Edubirdie. Retrieved November 21, 2024, from https://edubirdie.com/examples/job-loss-due-to-covid-19-as-an-economic-problem-essay/
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