The lockdown that is issued for corona virus or covid-19 has already stopped the programme of many companies and industries. Day-by-day the situation goes worse. As a result recession is going on in india. In this situation we have obviously doubt that which industry is safe and which company fire their employee most and which not etc? So all these are covered in this article.
In 2019 both india’s economy and world’s economy did not perform well. For this everyone expect more from 2020. But corona pandemic proves it wrong. The effects of corona virus is shown in France,Spain,Italy,US,UK etc mostly in earlier time. The effects of corona virus is rapidly growing in world’s largest economy,US economy. And its impact directly smudge into business and jobs.
Is your job safe in Recession 2020?
In india most of the workers are working in manufacturing and construction industry. And till now the two sectors fully stop their programme. And the workers can not do work from home. So the income of the workers is fully stopped. For this many workers face the problem of foods. Not only workers but also other persons from different sector are damaged for the covid-19 pandemic. Ler’s start with Aviation sector:
Airlines of aviation sector like Emirates sends their employees in unpaid leave. It means the employess are left with no salary till the programme of emirates will not operational. United Airlines,one of biggest airline are thinking to fire some employees. GoAir cut 50% salary of their employees in March. Air Indigo did same quite. They cut 25% salary of their employee in March,2020. It is now september and it is continuing from february.
And it does not look to heal everything so soon. The pandemic runs quite more. So the future time may be more tough. The effects of covid-19 directly impacts on aviation sector from the earlier stage. So we see layoff,salary cut etc in aviation sector. And gradually the effect of covid-19 is seen in other sector or industries. and its impact starts from next week after the pandemic’s starting week.
If we see the hotel industry then we can see that the situation of hotel industry is also bad. They pay rent and maintainance charge and other recurring cost and their whole programme is stopped and income become zero. There are few hotels that are allowed take out services. Otherwise the situation of other hotels is very bad. For this in US United Square Hospitality Group decided to fire their 80% employees from their company. Le Meridien & Holiday Inn starts to fire their employees.
The effect of covid-19 is also powerful in Event management,Media & Entertainment and textile industries. The manufacturing industries on whom depends most of people income is sit fully. And for all these india faces a deep recession.
Automobile sector is performing bad in last two years. Many employees were fired from automobile sector in last year. And their situation is very bad for corona. The spending power of people is reduced because many jobs are gone. And for this the luxury things like automobile are not bought so much. You can see bankcrupcy of many automobile companies. Many companies of aviation sector performs very bad from before and their financials is also in poor condition. So you can see bankcrupcy in aviation sector.
The condition of Travel & Tourism is also worse. Travel booking website,make my trip,goibibo and redbus’s management faces salary cut. And company also think to fire some employees. The founder of these companies tries their best to tackle the situation. Founder of make my trip did not pay salary from april. And all the things are not sufficient for the covid-19 pandemic.
For this its effect falls on jobs. Make my trip is a loss making companies like other startups. They did expansion raising fund and create job opportunities. But now to raise capital is a challenging task for them. For this you can see layoff in startup ecosystems and also startups failure. Bird,a US based company fired 30% of its employees.
But in some sectors there has no effect of covid-19 pandemic like telecom sector,pharmasitical sector,health & care sector etc. Some financial service companies and it companies continues their programme without any problem. The companies that works fully in online and their employee can do work from home are continuing their programme and growing continuously.
+There are some companies that become more profitable for covid-19 pandemic. Like the number of orders in amazon in US is increasing. For this amazon think to hire people. And its demand is increasing for work from home. But all the IT companies are not safe or benifited. Technolution,US based technology company that have offices in US,india,indonesia,singapore etc fires their employees.
They fired many employees from hyderabad office. In this condition many people become panic for their jobs. So many ceo of different companies declares not to fire anyone in 2020. Tata,visa,citi,bank of america,goldman sachs ‘s CEOs declares not to fire anyone. And some other company says not to layoff till it possible. Like salesforce said not to fire anyone till 90 days.
Many companies are fully stopped. It means their revenue source is fully closed but their expenses are continuing like rent,maintainces charges,recurring costs etc. For this many companies have faced difficulties to sustain. And they can not afford paid leave more. We see that salary pay is become difficult for companies in march. Its dangerous impact fell on obviously in small business. As their income source is fully stopped so they face financial problems because they do not have financial backup. On the other hand it is impossible to get loan now.
The main fact is that there is no income but expenses are running. It is not right to continue the condition for long time. So we should try not to spread the pandemic more. Because it is the thing that we can do and it is in our hand. Recession is already come but deep recession may come. For this many jobs are gone. It is a bad a dream for people.
Many people wants to do many but in the pressure of situation they can not do anything. In america there was a great impact. there was 3200000 people claims unemployment on 15 th march to 21 th march. You now understand obviously how dangerous it is. In fact site was crashed for huge number of unemployment claims file. Similiarly this was also apply in india. After second week of april layoff is common news for indians.
The bad thing of recession is that you first loose you job and you can get a new job. So it is a double impact. For this many jobs are gone temporarily. On february 2020 the unemployment rate of india is 7.78% and it may be 8-10% in somedays for the corona crisis. Normally indian companies can not create jobs in last years. If it is told in state wise then Uttar Pradesh have a unemploment number of 3400000 from last two years. US launched 2 trillion dollar stimulus package for fighting with corona and trying to recover the economy and save the small businesses and jobs.
377 billion dollar of 2 trillion dollar are used to help to small businesses. In india our country is a developing country GDP is about 2.7 trillion dollar. And about it is the stimulus package of america. So there is no huge capital to fight with corona virus. So we should try not to spread the virus. Because it is not only pandemic but also it takes recession. Otherwise its result can be so dangerous that we can not imagine.
If you have any query related to job recession 2020 please comment below so that the topic of job in recession can be covered.
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