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The world economy has seen tremendous challenges and changes since the start of the COVID-19 Pandemic. Random lockdowns and improper institutionalized arrangements have directly affected the labor market resulting in a considerable spike in the United States’ unemployment rate. The early months of the lockdowns resulted in record-high unemployment rates, which created a straightforward way for the recession to come in future times. Thus, the supply and demand for labor remain a lot uncertain.
Due to the massive layoff and rise in the unemployment rate, there is an excess supply of labor, which has shifted the labor market equilibrium. The uncertain lockdowns have resulted in the closing down of restaurants, malls, and shops and have brought the supply chain to instability. The growth in COVID-19 cases has caused many businesses and companies to have requested their workers to work from home. According to the current trends, many service sector businesses have made the most out of these crises. …
