The state of job world post Covid-19 era

By
Mohsin Chaus
MBA – 2 (31)
Date: 15th May 2020

Introduction:
The Economic impact of COVID-19 epidemic has been largely disruptive in India. To
combat this epidemic, India has faced the longest lockdown in history with a purpose
to stop the spread and break the chain. According to a survey conducted by a body of
FICCI and Tax consultancy Dhruva advisors, the jobs are at high risk as businesses
are looking for some reduction in manpower. According to the World Bank’s
assessment Covid-19 epidemic is the worst recession since the great depression in the
1930s.

Impact:
There will be a delay in investments, low consumption for goods and services, heavy
impact on imports and exports, slow circulation of money. This conditions will have
an adverse impact on jobs and unemployment state in the country. Businesses are
facing huge losses and thus it is very clear that the majority business will try to focus
on recovery and survival and there will be no expansions and diversifications
expected for a long period. According to a survey by CII a leading industry
association, out of 200 CEOs, one third expected job losses of 15-30 per cent in
different sectors. Further, 70% of companies from 380 companies across the sector
are expecting a downfall in sales in the fiscal year 2020-21. The Lockdown is
impacting mainly on the consumption which is the important component of GDP. The
pain of unemployment will be felt 3 to 6 months post Covid-19 era. According to a
survey done by KPMG, 70 per cent of the jobs at risk in the travel industry, 10 million
jobs at risk in the textile entire chain, the agricultural sector is facing the debt
paralysis and it will last for a long period. The sectors worst hit by this epidemic is
Aviation, retail, financials, automobiles and real estate.
On the other hand, there can also be a quick rebound due the psychological reason.
The consumers may go crazy once the lockdown is lifted and they may wish to buy
more, spend more and travel more which may increase the demand and supply in the
country. Also, India is less dependent on exports compare to other countries like
Japan and China and thus increase in domestic demand can at least boost and stabilise
the economy of the country. The Pharmaceutical, medical and health equipment and
digital companies providing services which enable digital entertainment, work and
office system will see a jump in their business post epidemic. Further, transportation,
storage & warehousing and e-commerce businesses would come back quickly.

Conclusion:
There are many ifs and buts as no one has seen such an extreme scenario before. The
players which can drift the situation upside-down are Entrepreneurs, banks, investors,
policymakers and government. The time is very critical for those who are finding
jobs. There is also a risk of losing the job or wage-cuts for those who have the jobs.
The one thing which is going to help is PATIENCE.