Is Work From Home Doing Its Bit For Economic Growth During This Lockdown?
The pandemic has resulted in a downturn of the global economy which had never occurred before in history. Being the worst decline, there are still hopes that economic growth can climb heights and set different bars.
Coronavirus, which originated in the Hubei province of China has claimed the lives of thousands of people and has infected lakhs already.
The notorious strain of the SARS-CoV-2 virus known as COVID-19 is spreading like a wildfire among human beings across the globe.
Image by: livescience.com
This virus causes severe respiratory illness within a few days of contracting. The virus is extremely contagious.
Based on the data and conditions put forward by China, Italy, New York, the US, and many other countries, it is only logical to put the world under quarantine and lockdown.
Social distancing is very crucial today to make the virus unable to propagate to those countries which are not yet affected (If there is any!).
What asks for our attention is that the lockdown has eventually brought grave consequences to the global economy as well.
HOW HAS THE PANDEMIC AFFECTED GLOBAL ECONOMY?
The global pandemic of the nasty virus has brought certain abrupt changes in the economy across the world.
The global economy has seen a downturn.
From restaurant servers to almost every small business owner, industries are scurrying to adapt after countless states have closed down.
The United Nations has stated that the global economy might shrink by almost 1 percent after having a gain of 2.5 percent growth in 2020 due to the virus.
According to the analysis, the severity of the economic impact widely depends on two major factors:
● Duration of the lockdown (prevents the movement of people)
● Economic activities in major economies
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Kriestelina Georgieva, The International Monetary Fund Managing Director has stated that we have entered a recession but we can expect a recovery in 2021.
In fact, there may be a rebound as well but only if we are successful in containing the virus everywhere.
She strongly emphasized the part that most of it will be covered by domestic resources but the fog has not been cleared when asked how. The IMF is working on establishing exactly how long that would be.
The IMF needs to mobilize faster with appropriate instruments in response to this crisis.
ADOPTING THE WORK FROM HOME POLICY
Due to an exponential decline in the economy, almost every company throughout the world has implemented the strategy of work from home.
Work from home seems like the only feasible alternative to curb the dilemma of earning a livelihood amidst maintaining social distancing.
Amid the pandemic, a worldwide lockdown has been announced by the government of every country to avoid the spread of the contagious novel Coronavirus and emphasize the idea of social distancing.
This is encouraging people to set up home offices and work remotely.
Sentiment analysis has shown that over 20 lakhs employees and staff have accepted the work from home policy.
WHY IS WORK FROM HOME A BETTER OPTION FOR THE CURRENT ECONOMIC CONDITION?
The predominant reasons why work from home is adopted by a major proportion of the population because it involves:
● Cost savings
● Convenience and productivity gains
● Flexibility to move according to business needs
Most companies are much rather likely to shift to work from home permanently. The convenience of working remotely has proved to be beneficial for both the company as well as the employee.
WORK FROM HOME AND ECONOMIC GROWTH
Does the real question arise whether the work from home strategy helps the global economy in the way as good as it was when staff and employees had to reach the office and work?
Remote working in companies that deal with the digital economy seems to be a logical way of working. All that it requires is decent internet and proper time management.
The management strategy of work from home is seen to be easily implemented and increases productivity immediately. This allows employees to work remotely.
Work from home has made an extensive number of employees to be more productive and they are less likely to quit.
Evidently, if employees are performing with a minimum fallacy rate, the economy has nowhere to go but up.
But while it’s saving various industries from doom, it may not prove very productive for daily wage workers, jobs that require physical presence, small business owners, etc. These folks can not fall into the category of remote workers
We ought to be empathetic towards them as they are going through a tough time until the pandemic is over and their daily jobs are brought into action again.
We have to be human enough to pay them their daily wages because obviously they are not responsible for any of it and should not be the ones suffering.
Mind you, they do contribute to a major portion of the global economy as well.
Work from home seems to be a bliss for the economy and individuals, be it an employee or an employer. So why not be a little emphatic towards the ones who aren’t in the position!
Certainly, the economy before the Coronavirus pandemic was blooming in different sectors of the world.
It sure was a pool of opportunities and employment for the population of every working-age group.
But now the only motive of the whole world is to fight against Corona and come to the other side of it unharmed.
The use of the word ‘was’ is only temporary. This is not a permanent destruction of world economic development and growth.
Image by: Smithsonian Magazine
What we are facing today is a public health emergency. This needs attention as of now more than anything. Flattening of the curve needs to be given priority.
A small decline in economic development doesn’t essentially mean that it’s a ‘loss’. We’re in this together.
Let’s be more human and fight this pandemic together. Economy and wealth only hold significance if we’re alive. Meanwhile, read this to enhance your skills during quarantine and be prepared to face the world post quarantine.
Originally published at https://www.fuzia.com.