Covid-19 pandemic has impacted several industries and it is directly proportional to the rising unemployment. A recent study by Ippei Shibata of IMF revealed the grim scenario of the job market in the US post Covid-19 times.
The study paper revealed that the current crisis is much bigger than the 2008 financial crisis the US economy has gone through. According to the study, service sector jobs that require 'social interaction' are badly hit now.
The paper defined a key aspect of the job market based on 'essential' and 'non-essential'. Non-essential jobs are allowed if they don't need human interaction. In other words, the jobs that are 'teleworkable' are intact post Covid-19 pandemic. Except for agriculture, finance, and construction, all the other industries witnessed a huge decrease in manpower.
Many businesses are unable to cope up with the social distancing rules and it has impacted the jobs across various sectors. And this crisis hit the US economy harder than the 2008 financial crisis.
In both crises of 2008 and 2020, the employees who could work from home easily without going to office are 'less affected' according to the study. But the current crisis had a severe impact on the people who could not work from home than the 2008 crisis.
The study also pointed out that the more women lost employment than the previous crisis. The Black, Hispanic workers more affected in the crisis. The less-educated workers also lost more jobs due to the Covid-19 pandemic.
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