Get ready for "TSUNAMI" of Job loss Post-Covid19
All the Common people and countries felt that the most challenging task in 2020 was to get rid out of COVID-19, however ignoring the fact something more devastating is waiting to come post Covid-19. Moody’s have predicted the global economic crisis and a ‘TSUNAMI’ of job losses that has already started and is going to worsen in upcoming days.
More financial pain is on the way as businesses curtail investment and savings evaporate of people across the world. U.S. businesses have already started lay-offs, spiking unemployment levels. “Millions of job losses are likely in the coming weeks, particularly for households that live pay-check to pay-check, The stock market collapse will also have a strong negative wealth effect—the change in consumer spending in response to loss of wealth. “If sustained the loss of stock wealth will itself reduce the GDP over the coming years by an estimated 2%. In January before the onset of the Virus Moody’s expected that real GDP growth of world will be 2.6%. With the onset of the virus and various business shutting down and contraction of factory output it is expected to contract as low as 0.4% or may even go negative if things do not get under control over a period of time. US have already started to lay-off workers and it has said to meet a new height of 240000 individual per week (as per US government) consistent with no job in US. Also for India the GDP growth which as forecasted around 4-5% is now just expected to grow by 2.5