The COVID-19 crisis had profound impacts on the state of employment. These ranged from widespread furloughs to fundamental changes at workplaces. Working from home is simply not viable for a large section of the workforce. Here is a look at what employment will look like in such industries post-COVID-19.
COVID-19 and employment
The rise in the rate of unemployment was a direct economic outcome of the coronavirus crisis. The Bureau of Labor Statistics recorded several spikes in the unemployment rate throughout 2020. Job losses were more pronounced for migrant workers in lower-skilled employments. Data from the Department of Labor reveals that migrant workers were hit harder by the job losses. Large numbers of migrants work in industries which were most affected by the COVID-19 crisis. Some of these domains are travel, retail, construction, and hospitality. The nature of work in a majority of these jobs does not allow for teleworking. Millions of migrants live and work in the US. They regularly send money online to support their families in their home countries with remittances. These expats urgently need a solution.
Present situation of workers
In 2021 so far the economy has recovered 12.4 million of the 22.2 million jobs lost during the pandemic. Lower wage workers are having a difficult time getting back to work. COVID-19 has disrupted contact-based occupations (housekeeping, hospitality, food services, domestic work, and others) which employ migrants in large numbers. Nearly 17 million Americans and migrants will have no option but to transition into entirely new roles and industries.
Working conditions
Businesses are facing a COVID-19-fueled recession. Firms are searching for ways to ensure “minimum service” in anticipation of the next disruption. Professionals working from home are better protected in terms of their livelihoods and family health. However those in contact-based jobs face unavoidable health risks every day. These employees provide vital services such as supplying groceries and sanitizing public areas. Workers in unskilled and contact-based services cannot stay at home to care for themselves or others. This crisis is a reminder to rethink employee protections and employee welfare.
Growth and decline
The COVID-19 crisis was a major disruptive force. Some categories of lower skilled workers experienced an increase in the demand for their services. A sharp rise in online shopping caused a 30% spike in ecommerce. This created the need for 235,000 additional workers at Walmart and another 175,000 at Amazon. Some of these jobs are in supply chain and logistics. Ecommerce firms are working hard to meet the demand for health products, pet supplies, home office equipment, and other orders.
The growth in warehousing and transportation jobs is small compared to losses elsewhere. Those increases are unlikely to offset the disruption and lost jobs overall. For example, while transportation jobs could grow by 800,000 customer service and food service jobs could decline by 4.3 million.
CNBC reported in March 2021 that a percentage of the job losses caused by the COVID-19 recession may be permanent. Those jobs don’t come back even as the global economy recovers. COVID-19 restrictions have forced automation in many industries. Many firms will not return to their pre-pandemic production procedures regardless of how safe the workplace may eventually become. Disruptions in supply chains and border restrictions will see more organizations turning to technology, automation, and AI for growth, instead of hiring larger workforces.
Job transitions
Upskilling and reskilling are the ways forward. More than half of the displaced workers will need to shift to completely different occupations, ideally in higher wage brackets. They will have to acquire new skills to remain employed. According to the Brookings Institution workers in certain declining occupations have realistic pathways to transition into growth jobs. Cashiers and retail salespersons have been known to successfully transition into roles such as telemarketers and stock clerks. Such transitions will occur at scale. This will widen the debate about working conditions, minimum wage, and employee benefits. Many firms are already setting examples by taking ownership of protecting the most vulnerable sections of their workforce.
About the author:
Hemant G is a contributing writer at Sparkwebs LLC, a Digital and Content Marketing Agency. When he’s not writing, he loves to travel, scuba dive, and watch documentaries.
