Over the past few weeks, there have been numerous rules implemented due to the exponential rise of coronavirus victims. The coronavirus disease (COVID-19) is an infectious disease that currently has 549,604 cases with 24,863 deaths worldwide. This has led to the possibility of unemployment hitting 15 per cent in Canada by the end of the year, as suggested by the parliamentary budget watchdog (Connolly,2020). A recent article by Global News regarding this issue touches on what this means for Canadians moving forward. This blog post aims to demonstrate that the response to the coronavirus by the government and Ontario-based companies has been based around short-term solutions with the long-term impact on the economy left unanswered.
In the article, it mentions that the coronavirus pandemic has negatively affected the retail industry over recent weeks as social distancing rules have been implemented. Malls are also no longer operating due to a new rule banning groups larger than 50, this has forced malls as well as many other facilities to close their doors. For example, luxury retailers like Burberry have closed their doors from the start of the outbreak to prevent the possibility of spreading the virus further through their employees or exchanging of products. Regardless of whether stores decide to remain open or closed, many consumers fear leaving their house as a rule implemented by the government forbids individuals from leaving their homes unless it’s for essential purposes. This dramatic decrease in consumers has significantly impacted local companies and other bricks and mortars stores, making it unprofitable for these companies to remain open.
As mentioned in the article the government has implemented a plan to help citizens survive during these hard times that being a $107-billion coronavirus support package which initially was said to include roughly $27 billion in support for workers and another $55 billion in tax deferrals and credit programs (Connolly, 2020). But the legislation has since introduced a more equal split between those, with roughly $55 billion on both worker support and the more tax and credit-focused measures. What this means for working citizens who have been left without work by the quarantine is that they will be paid a certain amount monthly depending on their situation.
These methods of aid from the government mainly apply to smaller companies who do not possess the capital or technological capabilities to move the work of their labour force online. Having said this, most larger companies are capable of moving work online which creates many new complications. Information regarding these complications is not mentioned within the article, which leaves many questions unanswered. For instance, how are companies planning to monitor employees and resolve issues that employees are facing in their new workspace? How will HR reshape their hiring process or will hiring be completely paused until a deeper understanding of the length of this virus is gained? How will the rising unemployment levels caused by a deduction in hiring affect companies and the economy once the quarantine has ended?
References
Connolly, Amanda. “Canadian Unemployment Could Hit 15 per Cent amid Coronavirus Pandemic, Deficit to $113B.” Global News, Global News, 27 Mar. 2020, globalnews.ca/news/6740289/pbo-report-coronavirus-pandemic/.
Jasmine Schariefy 