How Coronavirus is Impacting Businesses and Job Market Globally?
How Coronavirus is Impacting Market Globally
The spread of the Coronavirus throughout the world began in March 2020, termed as a viral disease and generally known as COVID-19. Till now, it has been spread over 138 countries and has swallowed many lives. Its main origin was Wuhan, China, and now become popular in almost 75 percent of the world.
Until now, 138,240 cases of Coronavirus have been found out, of which 5,081 people died. The most severely affected countries other than China is Korea and Italy. Due to its overnight spread in the world, it has affected the industries, businesses, and the job market that has caused billions of economic losses in almost every field of life.
China has faced a 4.5% downfall in its economy due to this disease. For now, China’s global growth is weaker than it was in 2003. Corona Virus has also lowered the mortality rate. The United States is also facing a huge decline in its economy because it has lost 1.6 million visitors from China, which cause a $10.3 billion economic loss. The economic growth ratio of different countries came to fall due to this deadly disease, as it is illustrated in the lower figure.
Countries around the world are facing major business downfalls where most of the people made China its culprit. The virus does not only affect the environment and people but is also affecting the business and marketing worldwide.
For instance, all the countries have stopped traveling to control the spread of the Corona Virus, thus cause extended degradation to tourism across the world. For example, Thailand is facing 70 % less tourism as compared to its normal flow, which makes Corona the second threat to tourism after the deadly Tsunami attack.
In parallel, a kind of trade war has been started because all the countries have stopped the import and export from China, thus causes its major exports to slump down to a $7.1 billion deficit that accounts for 60 % of the last year. Besides China, all the countries are in the worst economic and social rotation of downfall. It has also affected the employees and workers who came from other countries and forced to do a 14-day quarantine check-in utter isolation. We will now list some of the declines that are caused by the deadly viral disease.
The decline of Healthcare Centers
After the spread of the Corona Virus, the demand for Health Care centers has been increased because the only way to stop the spread of the Corona Virus is “Isolation.” This cost a bulk of isolated bedrooms. As it is reported in the world news that China had made its empty buildings to the part-time hospitals to meet the increase in its patients. This impact demands more and more medical facilities that are currently in decline.
Service Industry Workers
The world is also facing a decline in business due to the shortage of service Industry workers because they are not getting any services. This decline in services cost the air and tourism workers to lose their jobs. There are also many remote workers that did not get the proper job benefits because most of the developed nation companies shut down their work for a month or two.
Corona Virus has disturbed the supply chain of products inside as well as the outside of China. China and many other countries have done the factory shutdown, which has disturbed the whole business schedule of the countries and thus cost a burden of $60 million.
The disturbance in the supply chain affects the whole factory output. For e.g., the goods are not being transported on time and are effecting the economy a lot. This caused our world a deprivation of the products that are only made in China.
Customers Buying Less
Due to fear of Corona Virus, people avoid going outside, and they are not attending any activities or festivals. People are not even going out for shopping or buying anything due to which customer buying value is getting lesser and lesser. The restaurants and shops are also not getting any value from people due to the fear of getting infected.
China has a huge smartphone shipment, but due to the Coronavirus, it has been blocked. Most of the developing countries like Pakistan, India, Bangladesh, and African countries are mainly victimized of this deprivation because they are the biggest importers of different mobile phones from China. According to economic experts, it will also increase the deficit in China exports to $17.2 billion.
China is also facing traveling restrictions due to this disease. The UK, US, and other countries have blocked their flights from China. The Chinese people are also being blocked and checked at every airport. In addition, China is facing huge air departure declines, and huge booking change has been observed from the last two months that cost the people to pay more than 50% of the overall price.
The educational Institutes are being restricted due to the fear of Coronavirus. It affects the children’s education because the Schools, Colleges, and Universities are ordered to remain closed for some time. It causes a major downfall in the stationary, education, and uniform businesses. In addition, the teachers and professors are forced to change the educational plans, which cost them the extra work at the same salary.
The Disney land theme park has also been temporarily closed for some time due to the fear of infection, especially in Shanghai and Hong Kong. It has been observed that these theme parks hit a $175 million loss that has a huge impact on the entertainment economy of China and Hong Kong.
The World Health Organization (WHO) has ordered closed and postpones all the festive events due to this disease. This will cause a billion dollars’ failures in the entertainment and planning industry.
Biggest Software and IT Company Microsoft
As all know that Microsoft is a huge company, and it has owned a large number of employees and workers in the IT community. But, due to the Corona Virus, it has announced to close all the offices and ordered all the employees to work from home.
Still, all the employees are properly paid, and all their wages are also being paid according to the contracts, but the decrease of orders cause Microsoft a major imbalance in the supply and demand.