What does COVID-19 Mean for Unemployment?

Headline Diplomat eJournal - Issue 1
The perilous lenses of COVID-19: The impact on the economy
Writes Catherine Hamilton, Content Writer, Headline Diplomat eJournal, LUDCI.eu
The pandemic has wreaked havoc on every facet of life. In particular, the job sector has been hit hard, with ‘hours worked’ being at a record low in numerous countries globally.

In the US alone, over 30 million people have filed for unemployment in the last two months, and this is only going to increase, especially since the US government expects a recession to materialise in 2021, in the wake of the coronavirus.

Similarly, South Africa’s rate of unemployment has skyrocketed to 30%, with the national treasury forecasting 1.8 million jobs to be lost, at worst – an unemployment rate of 50%.

Continentally, working hours in the Americas are reported to have been most affected by the pandemic, as working hours have been reduced by 18.3% compared to the pre-pandemic period, according to the International Labour Organization.

While official unemployment in a number of countries – including in the US and UK – is not as high as originally predicted by data analysts, this is thought to be due to the fina...