Hiring during the pandemic

Effects of the Pandemic on Global Economy

Deserted airports, closed campuses, unoccupied streets, people confined to their homes – this dystopia is sadly our reality now and its effect has rippled through all the aspects of our lives. The Coronavirus has not just claimed lives but also our economic stability. In the last century, we have faced many a depression, but never one that had been caused by a virus. Unlike in the past, now a virus-induced inactivity has set off a chain of reactions that has stymied cash flow which our markets will take time to recover from.

All the central banks around the world are bracing themselves for a likely financial crisis, similar to the one we faced in 2008. The longer the pandemic, the worse the economic slump. Governments across nations are promising stimulus funds to help the economy survive. And while the corrective measures will help us get through the upcoming economic depression to an extent, we must prepare ourselves to face it headlong.

“By the end of this month, the global economy probably will have shrunk by 1.2 percent — “not far short of the 1.6 percent drop in world output seen at the depth of the global final crisis” in the fourth quarter of 2008, according to Capital Economics in London. As the United States reels, Europe and Japan are also probably in recession.” 

– The Washington Post

37 million jobs are predicted to be in danger and pay cuts might be in effect to cope with this financial crunch. However, we must not forget that it’s nobody’s fault, not yours, not your employer’s and certainly not of the person who hands you that letter. These are unprecedented times and we need to improvise to survive this hit. While governments plan their fiscal policies, we need to look at the strategies that helped us recover from the recessions of the past, whether it was the dom com crash, 9/11 or the more recent 2008 depression. 

The right kind of preparation will not just secure your future but also contribute towards the market. After all, depressions also happen to be the time when some of the most innovative businesses take off. 

Industries Most Likely to Survive the Pandemic

Tourism, and hospitality are among the worst hit industries of the pandemic but there are a few industries which will remain immune to its effects. The global economy is counting on these industries to revive the markets.

1. News & Entertainment: 

With the lockdown in full effect, everyone is turning more to the media for their daily dose of exposure to the world. As more people tune into 24/7 news channels to stay updated about the status of the pandemic or for national broadcasts on safety measures and policies, media companies see a surge in consumption.

Subscription based entertainment is also experiencing more engagement because of the confinement. If the pandemic lasts longer, there are high chances that global consumers will behave similarly to the Chinese consumers who have taken the number of gaming and entertainment app downloads to a record high this year.

“Amid fears over a global economic slowdown from the widening coronavirus outbreak, companies like Netflix that provide in-home services are best positioned to withstand the storm or even see upside from the crisis”

– Variety

Even though streamers like Netflix have declined to comment on this surge, its share price has risen by 0.8%. It is quite safe to say that the media and entertainment industry is likely to survive the pandemic if not benefit from it.

Read how media giants are using AI to detect fake news.

2. Pharma: 

While most industries are facing the severe consequences of the lockdown, the pharmaceutical industry is far from being affected by this mayhem. In fact, pharmaceutical products are one of the fastest moving items in this global crisis. While pharma companies are competing with each other to provide treatments for the coronavirus affected, investors are pitching in funds to fasttrack the discovery of the vaccine.

“Pharmaceutical companies view Covid-19 as a once-in-a-lifetime business opportunity”

Gerald Posner, author of ‘Pharma: Greed, Lies, and the Poisoning of America.’

Even with federal policies trying to limit the profit that pharmaceutical companies are making from this pandemic, there’s no denying of the fact that it is going to reap big from this global crisis.

Learn how Analytics is helping the healthcare industry.

3. Touchless and Homebody Economy:  

Touchless and homebody economy refers to all those industries that provide services to make living in our homes possible without stepping out. Whether it is your broadband service provider, the home delivery system, your online gym classes or the meeting app that helps you con call colleagues, homebody/touchless economy helps you function seamlessly from the comfort of your home. It has definitely seen a boost due social distancing in recent times. One of the most popular video conferencing apps, Zoom is currently enjoying quite a moment under the sun. With a record number of people downloading the app for working from home, Zoom stock prices have gone up to $150 from $65 and its overall market cap has increased to over $42 billion.

Similarly, goods and food home delivery services like Amazon, GrubHub and more have also seen a rise in demand. Even though these services have been interrupted due to the spread of the virus, they are fighting all odds to keep functioning. In fact, the touchless economy will be a major reason why we might not have a full scale depression.

Learn how AI is helping the ecommerce industry.

4. FMCG

Fast moving consumer goods is another industry which will survive the economic slump, especially the non-durable goods industry. During the pandemic, one of the few functioning bodies are the food and grocery stores and when all of this gets over, behavioural analysts predict that people will be in a celebratory mood, trying to make the most of their freedom. Naturally, consumer goods such as food, beverage, everyday consumables will see a rise in sales.

5. BFSI

Banking, Financial Services and Insurance will be one of the few industries that will work around the clock to support the flagging economy. Individuals and businesses will be in need of loans to recover from their losses, while users will claim their insurance having been hit badly by this crisis.

Banks have already started to slash their rate of interests to help consumers get back on their feet as fast as possible. Their user-friendly policies will continue to rescue business in the coming times.

See how BFSI uses data analytics to solve its problems. 

6. Online Education & Remote Learning: 

The lockdown has finally allowed many of us the time we have been craving to invest in ourselves. With more time in hand people are turning to self learning on online platforms. E-learning companies are also transforming and offering more flexibility and options to users so that they can use this time to reskill or upskill. From schools, companies to universities and multinational companies, wherever there’s a scope for learning, E-learning platforms are providing support. This trend is likely to grow even after the pandemic since remote learning has not only succeeded as an effective alternative to classroom teaching but has also evolved as a convenient tool for many.

Read how AI is disrupting the education industry.

Economic slump due to coronavirus

Hiring Trends in the Upcoming Time

Unemployment is projected to rise to 30 percent in a few months, and an economic contraction in the second quarter of 15 percent or more has been forecast.

-NY Times

The current job market might offer a lot of uncertainty but if we can guarantee you one thing that’d be competition. Expect more competition and rigorous hiring processes in the coming times, so prepare well.

You need to be persistent and adaptive to change but most importantly you need to play to your strengths. Here’s how you can do that:

  • Don’t waste your time in irrelevant openings
  • Network fiercely (explore new networking platforms)
  • Upskill to avail the opportunities of the current market
  • Don’t let fear limit your choices

Use Quaran‘Time’ to Upskill

Social distancing and self-isolation might have led to a number of problems but if there’s one thing that we can’t complain about, that’d be time. We all have more time in hand than ever. Time saved from not having to commute to work, not having to stick to a preparatory routine, dodging distractions at the workplace and more. Let’s put that time to some good use instead of binge watching shows in the name of self-pampering.

  • Identify Opportunities: If you look deeper into the situation, you will be able to identify and use opportunities. Even in the middle of the obvious panic, consumers won’t stop looking for solutions to their problems, if at all they’d be facing new challenges and would require assistance. Consumers would be willing to buy products and services which offer them better value for money. Additionally, you’d be facing less competition in the market since most businesses would be holding back. If you can craft your business model around that idea, you’re likely to benefit from this adverse situation.
  • Upskilling is the Only Way Forward: Artificial Intelligence, Machine Learning, Data Science and Analytics, Cyber Security, Cloud Computing and digital marketing are some of the technologies that are going to actively contribute towards numerous industries in the coming times (if they aren’t already in the current crisis). It would be wise to upskill in these domains to stay relevant and have an edge over your competition.

If you want to know more about the industry specific use of all these technologies, visit the Great Learning blog.

Great Learning offers courses on all the major technologies like:

We wouldn’t want to overlook how the world is changing around us as we continue to fight the Coronavirus from the confinement of our homes. From telecommuting to AI powered researching, we are increasingly relying on digital technologies to overcome our personal and professional challenges. It would be interesting to watch how this new normal unfolds on the other side of the pandemic. Needless to say, unprecedented times call for unprecedented measures. Improvisation is key and upskilling is the way to do that.

The economy might take some time to revive, but when it does we’ll be better equipped to tackle future hurdles.

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