Pandemic driven job losses ten times times higher than 2008 banking crisis

8th July 2020 (Last Updated July 8th, 2020 07:33)

8 July

Unemployment rates have reached unprecedented levels globally due to the Covid-19 pandemic.

The impact of the pandemic on jobs is ten times higher than the 2008 global financial crisis.

Despite the job retention schemes and unemployment benefits offered by governments, unemployment rates are not expected to recover until after 2021.

Miles Corak, professor of economics at The Graduate Center, shared statistics related to the job retention schemes implemented across various countries from an article published by the Organisation for Economic Co-operation and Development (OECD).

The article details how the Covid-19 pandemic is leading to a collapse in economic activity and increasing unemployment rates, which is expected to reach 12% globally and 10% for OECD countries by the end of 2020.

Corak noted that these job retention programmes have not succeeded in Canada as businesses have not adopted them.

He added that temporary layoffs are turning into permanent layoffs resulting in an increase in the duration of unemployment and decline in earnings.

In other news, Fausto Panunzi, professor of economics at the University of Bocconi, shared an article on the revival of pawnshops in Italy.

With banks declining to extend loans and government aid packages set to end next month, Italians are turning to pawnshops for loans.

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