COVID-19 has changed the employment landscape completely during the last year. Many lost their jobs and simultaneously several sectors were on a hiring spree. Read on to know the impact of the pandemic on the job market.
The year 2020 was one of utter chaos for the business world. The pandemic was a sudden shock and disrupted the global economy. Several businesses closed down and many had to scale down their operations for continued survival. The result was a total upheaval in the job market where layoffs and salary cuts emerged as the new norm. The lockdowns and social distancing measures affected a significant proportion of the workforce in the world.
So, are all companies resorting to firing during the pandemic? No, each organization reacted according to the extent of negative impact. In fact, there were even companies that hired during the pandemic.
Impact on coronavirus on the different industries
How did the pandemic affect various industries? Did it spell doom for all?
It is interesting to note that though the pandemic caused losses to most industries, there were sectors that even boomed during the crisis. Healthcare is a noteworthy example for this. There was a spike in the demand for hand sanitizers and face masks that brought huge profits for many enterprises in the healthcare sector. Online education, delivery services, and remote communication services also thrived because of the consumer need for contactless services.
However sectors like manufacturing, retail and wholesale, hospitality, and tourism were worst hit by the pandemic. Retail businesses including local mom and pop stores had to close down because of lack of footfall. The fall in demand also affected the manufacturing industry as production was downsized significantly.
Hence, the hiring and firing process during the pandemic varied according to the nature of business and the kind of impact COVID-19 had on the particular sector. So, let’s dive further into where hiring is happening and where layoffs are happening currently.
Who is hiring during COVID-19?
Health-care giants are on a hiring spree followed by online retailers. A major chunk of the job openings available currently are for delivering medicine and essential items to the people.
Online retailers are promising contactless and safe delivery and raking in higher orders because of social distancing measures that are still in force. Amazon.com plans to hire 100,000 delivery staff in the US while Walmart Inc will be hiring 150,000 people to meet the increasing demand. Logistics sector is also witnessing more job openings due to the need for packing and warehouse staff.
Who is firing during COVID-19?
Travel and tourism, restaurants, and the transport sector suffered the worst impact of the pandemic. Reduced crowd and zero bookings forced many companies in the hospitality industry to retrench staff, and the situation is expected to remain the same for quite a while.
Since corporate employees are working from home and schools have switched to online learning, there has also been a fall in travel requirements. This has led to automobile or transport companies downsizing to stay afloat.
The shutdown of malls and retail stores during lockdowns has resulted in massive layoffs in this sector. However, as lockdowns are being lifted we can see hiring resuming in these industries. But rather than hiring permanent employees most companies are resorting to using freelancers due to the need for flexibility.
Remote working and digital communication became the norm during this period. As a result jobs such as cyber security, IT backend support, and data privacy are also growing in demand.
The impact of COVID-19 on the job market is a mixed one. While many lost their jobs, several new ones were created to cater to the shifting consumer mindset. However, the uncertainty of the pandemic does not recommend permanent hiring. It is best to hire temporary workers or use the services of a staff augmentation firm to scale up or scale down your operations as required. SBL can support all your additional staffing requirements at affordable rates so that you have excellent talent within your and can avoid permanent hiring.