COVID-19 and the economy: job loss and economic shutdown

Abstract

The COVID-19 pandemic devastated several countries across the globe, having economic, social, and health impacts on all nations, some more than others with over 31 million infection cases and almost 1 million deaths as a result of the pandemic. This has caused a ripple effect on the agricultural sector as seen by the food scarcity and the increase in food spoilage ravaging the sector as many local farmers are unable to transport their produce to consumers. The pandemic has also confronted the hospitality industry with an unprecedented challenge as a result of the temporary closure they had to experience due to the lockdown imposed in affected countries. The transport sector is not excluded though to the positive side as there has been a decrease in air pollution within some countries due to the various travel restrictions and bans placed on the movement of people. Another sector seriously hit by the pandemic is the tourism sector as there has been a projected loss of about $1.2 trillion equivalent to 1.5% of the global Gross Domestic Product (GDP). The same goes for the sports sector as major tournaments have either been cancelled or postponed. This paper discusses the impact of COVID-19 on the global economy and its corresponding implication on job loss in various sectors. With the daily increase in the number of infected cases globally, systems and structures which will be able to neutralize the effects of future pandemics need to be put in place and reviewed from time to time.