It’s fair to say 2020 has been a year like no other due to the ravages of coronavirus. Since the virus first emerged in Wuhan, China, it has made its way round the world turning life as we knew it upside down.
From distancing to isolation and home-working, the world has seemed a very different place through this year. However, while the death and illness statistics from COVID-19 have been shocking enough in themselves, it seems a new danger lurks ahead in the form of the economic implications of the lockdowns.
We’ve only seen the tip of the iceberg
It’s estimated the virus has caused 22 million redundancies in the US alone – with the potential for many more. Despite the release of vaccines around the world, a return to our previous normality doesn’t look likely any time soon and the economic bounce-back is going to be far from immediate. Coronavirus has impacted all aspects of society, including:
The shock of the virus on households: While redundancies have been common across all industries, workers in the retail, entertainment, leisure and travel industries have been hit hardest by COVID-19. Nonetheless, no-one is going to escape unaffected by the virus – directly or indirectly – and household hardship through unemployment or reduced wages seems likely for most families. If you find yourself needing help, you should check online for support agencies. Also, if you’re having financial problems, you could consider taking a short-term loan. Many new reduced-term loans have come on the market and can be an attractive proposition when compared to longer-term debt. Many lenders just ask for the security of a car or other high-value item as collateral. You can find out more about What Is A Car Title Loan And How Does It Work? – by checking online guides.
COVID-19 and event cancelations: With the cancelation of many sports, concerts and global celebrations like the Olympics, COVID-19 is having a significant economic impact on the events sector. However, while the damages will be most keenly felt by the various companies, teams and artists operating directly in those sectors, it’s worth remembering all the other workers that will also be hit – for example, the food vendors at venues, taxi drivers, merchandise retailers, hotel owners and travel companies. As with so many other aspects of coronavirus, the financial ripple effect doesn’t just stop at the source.
School closures and parents looking after kids at home: The majority of families operate on two incomes but with kids being unable to attend school, parents have been forced to stay at home more. Sure, in some cases, parents were working remotely anyway but employees at the lower-end of the pay scale (typically working more manual jobs) either had to sacrifice wages by staying home or pay for expensive child minders. As is so often the case with COVID-19, the lowest earners also are the hardest hit.
Coronavirus and online cybercrime: As we all became increasingly more reliant on the internet and technology through the last year for everything from work to entertainment and communication, so the rate of cybercrime has skyrocketed through 2020. It’s estimated the revenue generated by online criminals will be around $1 trillion in this year alone.