The Impact of the Coronavirus Outbreak on the Canadian Workplace
Introduction
The global outbreak of the Covid-19 virus has been characterized by massive economic disruptions, the disruptions of the supply chain lines, and bringing a massive paradigm shift on how workers relate in the workplace (KPMG, 2020). The social distancing measures that have been put across by the government are bound to affect the workplaces even if the coronavirus pandemic is contained and adequately addressed (Collie, 2020). There are multiple ways in which the Canadian society and economy have borne the brunt of the epidemic, creating the existence and definition of people as essential and non-essential workers, and effectively creating an everlasting change in different areas of interest.
Impacts of Covid-19 in Canadian Economy
The coronavirus has affected the Canadian economy in multiple ways owing to disruption in the supply chain and local and global trade. First, companies are laying off employees with unemployment rising to 7.8 percent at the end of March down from 5.6 percent in February (Collie, 2020). According to Collie (2020), the surge in unemployment in Canada reported in late March is immensely attributed to the adverse effects of the Coronavirus pandemic. Again, there is a projected decrease in the costs of products and fuel, as the demand has immensely declined. Owing to reduced demand and disruption of the supply chain line, the costs of goods are bound to experience a massive decline (Collie, 2020). On the same note, due to the social distancing measures and reduced mobility, there is a heightened aspect of lost businesses and reduced sales (Collie, 2020). The fact that the movement of people is minimized will translate to low purchase power and reduced business.
Further, the coronavirus pandemic has led to the differentiation of workers as essential and non-essential workers. The essential workers are individuals who deliver critical services to preserve life, health and propagate the basic functioning of society (Collie, 2020). These individuals include healthcare facilities, grocery stores, supermarkets, alcohol-related businesses, food delivery services, gas stations, and pharmacies. They are graded as essential since people cannot do without them to a great extent. The non-essential workers are those individuals whose services are not compulsory for the survival of the people during the pandemic. They include the cinemas, sporting activities, personal travels, parties, and other jobs that do not offer essential services. However, the definition of workers as essential or non-essential varies with the jurisdictions depending on the priorities of such places (Collie, 2020). The definition is determined based on what is deemed necessary by every province.
The Covid-19 outbreak has affected the motor industry, an area of interest in various ways. It has led to the loss of jobs since the supply chain is disrupted, and few people want to purchase cars amidst this uncertainty. Consequently, this aspect has contributed to the reduction in the number of sales of these products, bringing business to a halt in extreme cases (KPMG, 2020). Generally, the demand for cars and the products associated with it has sharply declined over a period (McKibbin& Fernando, 2020). Such decline shows the magnitude of economic disruption associated with the Covid-19 pandemic in different industries in Canada.
Finally, the corona outbreak would bring a long-lasting paradigm shift in employment and workplaces. Based on the disruptions of the pandemic and the fact that it cannot be eradicated, workplaces would prioritize digitization and use of IT in their operations more frequently (McKibbin& Fernando, 2020). Such aspects would facilitate seamless communication and operations of the organizations. Again, there will be massive layoffs if the economy does not pick up quite fast, and individuals will be forced to accept drastic measures such as temporary hiring of employees (Collie, 2020). Organizations would be compelled to restructure through mass demotions and sackings to remain afloat. In some cases, organizations would prioritize remote working phenomenon in combating the shortcomings attributed to social distancing (McKibbin& Fernando, 2020). Those individuals who are technology savvy would be given priorities during the hiring process.
Conclusion
The coronavirus pandemic has immensely affected various economic spheres of Canadian society, given a new definition of the members and brought to a halt, many tenets of the Canadian economy through the disruption of the supply chain line. In future employment, priorities would be given to individuals who are experienced in technology and can effectively work remotely.
References
Collie, M. (2020). What is an essential service? After groceries, it depends on where you live in Canada. https://globalnews.ca/news/6719233/essential-services-coronavirus/
KPMG (2020). Employers — Canada eases access to a 75% wage subsidy. https://home.kpmg/ca/en/home/insights/2020/04/employers-canada-eases-access-to-75-wage-subsidy.html
McKibbin, W. J., & Fernando, R. (2020). The global macroeconomic impacts of COVID-19: Seven scenarios.