The ILO has made some troubling predictions recently, including one that left global institutions and companies overwhelmed. According to the ILO, global hours worked will decline by 1.8% in 2022, with the possibility of getting lower by 2023. Until now, businesses all over the world, including the United States, have struggled to keep up with the pace of global demand. Companies like Tesla, for example, In November, Tesla’s CEO announced that his company would work on keeping up with customer demand and increasing its vehicle deliveries. Other major businesses still suffer from the same problem: the food and instruction sectors, real estate, and more.
Things are getting better compared to the first COVID surge. For example, the European economy is showing signs of recovery. The EU economy is expected to make a strong rebound in 2021 thanks to the virus vaccine campaign and the authorities.
Returning to the UN, in May it was predicted that 26 million workers worldwide would lose their jobs by 2022. Now, the ILO has made a very worrying forecast and predicted that by the end of 2022, 52 million full-time jobs will be lost. That includes all three major economic pillars: the U.S., China, and the EU economy. If you do the math, that’s near twice the first prediction.
The international labor organization also added that despite all that is happening in the stock market and all the positive recovery, the labor market is still recovering at a slow pace. The Omicron variant is hitting at a fast pace, and there are a few predictions that indicate that a third of the population will have the Omicron this year.
The U.S. healthcare department states that compared to the Delta variant, omicron is less dangerous and shorter. Investors are still keeping up with the latest Omicron update. According to the ILO, the Omicron variant will cause major businesses some difficulties in their work, which will cripple their ability to stay on pace with consumer demand. The bureau adds that in 2022, the global workforce will struggle more, and job loss rates will hit new highs, even higher than in 2019.
Yahoo finance experts think of Omicron as a short-term threat.
The latest interview with Yahoo Finance with Raimondo, the white house, thinks that the Omicron variant is a short-term threat. It’s undeniable that major sectors were hit by the variant. This made the Americans a bit stressed and horrified about getting to their normal activities. The Federal Reserve chairman’s speaker lately said that things are not normal yet, but the federal government will get them to their normal levels soon.
The Nasdaq and S&P 500 indexes are improving and scoring higher daily, and there is also good news about the healthcare crisis. In the northeast region of the U.S, regions are experiencing short-term effects of the Omicron, and that should be considered conferring to investors and businesses as well. Other regions in the U.S seem to agree that the variant won’t last long, but when it will despair, that remains a mystery to all of us.
Even though it’s expected that half the population will have the variant, some cities inside the U.S. are recording a slow virus spread. That’s actually good news for small businesses in particular. If things continue on the same path, it won’t be long before the workforce rejoins the labor again.