6 Effects of Job Loss Due to COVID-19 Pandemic

Apart from the health issue, job loss has become the greatest concern of most of the people worldwide in this pandemic situation.

The breakdown of the economy is one of the most devastating impacts of COVID-19. Exiting employees are being fired because of financial instability or low income.

Because of unemployment, millions of people cannot live their lives happily, even basic needs can not be provided to them sometimes.

In this article, I will be talking about the impact of COVID-19 on the world economy and some ways to overcome post-job loss stress.

Must read:

• How to Job Search During the Coronavirus Pandemic?
• Mental Health and Wellbeing in The COVID-19 Outbreak

The Impact Of Job Loss on Unemployed People

Millions of people all over the world have become unemployed due to the pandemic and many companies have been bankrupted. The pandemic has so many devastating impacts on the world economy, some of them are—

1. Informal Impact On Economy:

Because of the economic crisis created by the COVID19, about 1.6 billion, (yes, you read it right!) informal economy workers have suffered from the huge damage to the capacity of earning.

They are the most vulnerable and work in the hardest sectors.

In the first month of the crisis, the total income of informal workers has reduced by 21.6% in Asia, 81% in Africa and America, 70% in Central Asia and Europe. Most of them don’t have alternative income sources.

2. The Enterprises At High Risk:

About 436 million enterprises are at high risk of disruption worldwide. The enterprises operating hardest-hit sectors of the economy, some of them includes— 51 million food services and accommodation, 42 million business activities, 111 million in manufacturing, 232 million in retail and wholesale.

3. Small Businesses Are Running Out Of Profit:

Customers are decreasing day by day and business owners have to sell their goods at a low price. So there is less profit, and thus it becomes difficult to hire employees and pay them.

4. Household Impact Of COVID-19:

The individuals working for the business, who are heavily involved in international trade can feel the household impact directly. Loss of bonus, decreasing salary and sometimes temporary or permanent job loss have become usual for them.

At present, economic contraction turns into a long term recession of economy, it is possible that the high unemployment figures will be increasing as the available jobs are running limited day by day.

5. Cancellation Of Major Events:

The major events, like, Olympics, the NBA, NCAA tournament, MLB, the NHL, etc. have canceled because of the pandemic and it has a negative effect on the people who were working at the venue and in the teams.

The companies that depend on those popular events also feel the economic contraction.

6. Travel Ban Also Bring Crisis:

The temporary travel ban has brought a huge loss for the travel company and the tourist spots become empty.

Also, the businesses related to travelings, like hotel and restaurant businesses, are facing a huge breakdown of their economy.

Most of the important meetings and courses are available online and people are now encouraging online meetings, classes, so the use of vehicles is also decreasing.

In this lockdown situation, many people have lost their jobs and become broken inside. These are some of the common signs and experiences of the people who lost their jobs—

How do you know you’re about to lose your job?

• Unappreciated, so you may feel nonessential
• You may feel jealous of the other jobholders
• The feeling of angry and scared about the future
• The feeling of loss of identity 
• Anxious and don’t know what to do
• Worried about yourself and family members

Most of the unemployed people have experienced these feelings and unfortunately, this is how the situation affects the mind of people.

Though these feelings are normal, you should overcome these to keep going.

Recommended reading: Depression and Mental Stress Among Students in Pandemic