Corona Virus — How Major Economies are Dealing with Job Losses?
The novel Corona Virus has hit the world harder than we could imagine in our wildest dream. It is like those scary zombie movies where a crazy scientist did something evil in a laboratory and now, the whole world is in havoc.
There are mass deaths, lock downs and many other dire economic damages during this full-fledged global pandemic. The future doesn’t look any brighter, given the fear induced aversion to public and workplaces. The tourism industry which contributed 9.25tr USD to global economy had to face the greatest blow due to COVID-19.
The lack of global cooperation and leadership in this unprecedented extreme time is a reason to worry. While large countries like India are struggling with their weak social security system, the developed nations like USA and UK are also looking defeated in face of the pandemic, some countries are doing extra ordinary work in restoring their economy.
It is a false implication that resourceful countries can provide better care to their people given the current times. The working population of each country is equally scared of layoffs that are approaching with the plummeted GDP growth. Businesses are not immune to the pandemic and they are low on money when even governments are unable to provide their own employees due to sudden expense.
UK has come up with a remarkable response towards employees by offering 80% of salary up to £2500 for staff who is unable to work due to the coronavirus pandemic. This is an exceptional move which would help employers keep the employees even when they can’t afford their salaries. It will ensure fast cash for wage workers amid the situation where their savings are dried up.
Looking at the relief measures taken by Germany government, it appears as if COVID-19 induced rise in unemployment has been stopped practically as there’s no additional impact on unemployment since July 2020.
Owing to the various measures taken by Government, the business confidence has been increasing in Germany. A 10 billion Euro relief package for the workforce only (4 times the Indian self-reliant package) has provided a great generous deal in protecting firms from unwanted takeovers and insolvency.
Canada, being a premier example of good rescue plan, is providing CAD 2,000 per month for up to four months to those who have lost income due to the pandemic.
Netherland has put over the most generous plan. The government is covering 90% wage cost/ payroll for eligible companies. France following the footsteps is offering 84% of gross wage & up to 100% if a worker makes minimum wage.
The major economies and contemporaries should feel a huge pressure to intervene and support workers to prevent mass unemployment and boost businesses.
The Indian economy has to face major challenges in ensuring delivery of the relief packages to the unorganized sector workers who are not connected to the mainstream. The price of early lockdown was paid by the daily wage workers who remained stranded in a city with no savings because they were already living hand to mouth. The government announced packages for every weaker section like women, senior citizens, poor but the main challenge is to ensure money reaches the needy people given the social security system and lack of cooperation between centre and state.