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How Coronavirus Will Affect the U.S Job Market & Global Economy


The economy of the United States has remained steady over the past year. However, the outbreak of the Coronavirus disease has seen severe repercussions for the American Job Market. One of the industries severely hit by the outbreak is the oil industry.  

Oil and natural gas producers have taken a hit over the last year due to low commodity prices. They will have to slash investments in exploration and production. The other effects of the Coronavirus outbreak can be seen quite clearly in the following.

  • The Price of Texas Intermediate Crude fell below $50, a 20 percent decline as compared to the previous month
  • Chinese oil demand from America is on a low by 20 percent due to dwindling air travel after the outbreak
  • According to the New York Times, 14,000 to 750,000 employees lost their jobs in the United States last year because oil companies have tightened their budgets 
  • With the outbreak of the virus, more layoffs will be expected in the oil and natural gas industry

With fewer Chinese tourists entering the U.S, the tourism and hospitality sector is sure to take a blow. This, in turn, will reduce hiring. Auto industries will take a big hit as a lot of parts of vehicles are imported from China and assembled in the U.S. This will reduce production and have a heavy impact on the industry.

Speaking to the media, Razat Gaurav, the chief executive of LLamsoft, a supply chain company in Ann Arbor, said: “ If the current Coronavirus outbreak continues, it will ultimately affect auto assembly plants in the U.S and even Mexico.” This is worrisome for all the employees of assembly plants across America, as it may affect their jobs. Despite all the gloom, the U.S Commerce Secretary has a different view. Wilbury Ross, during a tv show, opined, “The virus will help to accelerate the return of jobs to North America.” These comments are surprising as it looks difficult for the U.S job market to accelerate further in such times of gloom.  

How Global Epidemics Affects The Economy

Many research papers by experts show that an infectious disease can have a sizable impact on the economy in the short and long term. Governments of robust economies in the world should try to stop such epidemics from spreading fast. 

If epidemics like the coronavirus disease spread, they not only take lives but disrupt economies. What’s interesting to note is that with development standards increasing, the vulnerability to epidemics should decrease on the whole. Instead, what’s happening is that the highly interconnected world is increasing the occurrence and spread of epidemics. It is worrisome how the coronavirus is slowly turning into a pandemic and disrupting life on a global scale.

How an Epidemic Can Trigger Work-From-Home Opportunities

With the outbreak of the coronavirus, a new interesting trend is on the rise. A lot of tech companies in China, such as Microsoft, Tencent, and Alibaba have told their employees to work-from-home, till things stabilize in the country. Macao, Hongkong, and Singapore have also followed suit and ordered their employees to work-from-home.

Many technology companies have tried to inculcate the work-from-home option but have never really succeeded in the past. With the virus spreading, companies have had no choice but to let their employees work-from-home. It remains to be seen whether work-from-home prospects will be widely available in the future. With the workforce evolving, companies globally should encourage more work-from-home opportunities. 

Concluding Thoughts  

An epidemic such as the coronavirus disease can have a sizeable effect on the economy. Lives can be lost, economies can crumble, jobs are lost, and all-in-all, nations suffer. The world needs to be better prepared to deal with such problems. 

Looking at the number of deaths that have taken place in China, Coronavirus has to be taken seriously. So that such an epidemic does not come back to haunt the world once again.

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  1. Due to the Coronavirus employers are not extending any offers for employment. Meaning those person who’s benefits run out this month or even next month need to be extended due to the state of emergency. TWC, what are you going to do to help those people? Most of them have put in there time and money to receive those benefits.
    Just because the unemployment rate is low doesn’t mean that it is that easy to get a job, especially if you are over qualified and just looking for work.
    FYI, it has been impossible to get a hold of someone with TWC by phone to see if benefits will be extended. They say it is due to the high call volume.

    • Rebecca,

      Please visit the Unemployment Office’s website. Your state should have activated emergency unemployment benefits in the backdrop of the COVID-19 situation.

    • Lana,

      Your state may have activated “Emergency Funding” in the backdrop of COVID-19 situation. Please call the Unemployment Office to learn more.

  2. I’m on unemployment benefits I’m on my last week of Benifets in Texas still can’t find work can I apply for emerge Benifets

  3. I am a school bus driver and am now laid off for @ least the next two wks due to the schools being mandated to close. Can I apply and recieve benefits?

    • Casey,

      Your state might make emergency funds available for you. Please reach out to the Unemployment Office over the phone.

  4. How is the Coronavirus pandemic going to affect people who are unemployed and looking for a job? What help is there for those looking for a job while this crisis is in effect?

  5. Worked full time for a church for 12 yrs. Voluntarily had hours reduced to parttime so I could pursue a better paying and more in-depth work in sound technology (job I did at church). Now because of Corona Virus the church has stopped meeting but also all public events are canceled as well and no jobs are available including going back to the church. Am I eligible for the emergency fund?

    • Valerie,

      Please reach out to the Unemployment Office in your state to inquire about the availability of benefits considering the situation.

  6. My employer closes up shop 3 months every year. Me and another employee file for unemployment each year during these months. We each earn approximately 30k. What does my employer pay in insurance in the state of CT. She was complaining it costs her a lot of $ for us to go on unemployment.

  7. Moved here from new York in October .
    I have only worked for this company since Dec 2019.
    And with this CornaVirus they cut my hour’s from 30 to 18 hr.
    Am I eligible?

  8. I am currently on unemployment and it runs out 3/30/2020. I was set to graduate school and have a job lined up, prior to this out break. I can not start my new job, does anyone know of an extension I can get on my unemployment as my college has shut down and I still have my clinical to do, before I can get my test to license for my job

      • Lisa,
        There are no extension for unemployment in Minnesota at this time I already called the Unemployment office today.

        • Lisa,
          People need to contact the Governors office and ask them what we can do and if they are going to put out extensions for the people that can’t find work that are already on unemployment and it is running out or has just run out .

  9. I am part time and was working a good 30 hours or so a week and now with labor cut backs I’m at 5 hours a week would I qualify for any partial unemployment?

    • Echo,

      To qualify, the claimant is required to have the required amount of hours and earnings each calendar quarter. I suggest you to use the “Eligibility Calculator” available on this website for more.

  10. I have been working as a part time para-transit bus driver for West Des Moines Human Services for the last 5 years. My job is being eliminated and contracted to DART on March 27, 2020. Being a Senior, drawing Social Security, can I still draw Unemployment Benefits?

    • Donald,

      If you’re seeking employment after this layoff, you can be eligible to claim UI benefits. Please consider applying.

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