The impact of the coronavirus on the job market and recruitment industry
The coronavirus (COVID-19) outbreak appeared suddenly and it spread throughout the whole world in just a few weeks. 196 countries are affected, our daily lives have changed dramatically and no-one knows when things will go back to normal.
HR professionals and recruiters around the world are wondering about the impact of the coronavirus on the job market and the recruitment industry.
- Will the coronavirus slow down the hiring process?
- Will there be layoffs and hiring freezes?
- How will coronavirus pandemic impact the job market and recruitment in 2020 and beyond?
Let’s see!
The impact of coronavirus on the job market
The International Labour Organization (ILO) predicted that the coronavirus outbreak could eradicate almost 25 million jobs worldwide, as the pandemic forces hundreds of millions of people to remain indoors, virtually shuttering the global economy.
The first rounds of layoffs have already started. Some industries are hit especially hard with the coronavirus crisis and they have no other choice but to shut down and fire their employees.
On the other hand, certain industries are flourishing amidst the coronavirus crisis. For example, Amazon is raising wages and opening 100,000 new positions to ensure its delivery network can withstand the coronavirus pandemic. Walmart also needs to hire 150,000 workers to handle a huge demand for everyday goods such as food and house essentials.
Thus, some companies are experiencing a huge crisis and firing people, but others are hiring like crazy and raising wages.
The impact of coronavirus on the job seekers
As a result of the coronavirus crisis, many employees are being fired out of the blue. Many others are worried about keeping their jobs in this uncertain time.
Employees are generally reluctant to make life-changing decisions in the middle of the global crisis. This is why we can expect the reduction of applications across all industries during the following few months.
WaveTrackR’s data has reported a 47% reduction of applications on average across all industries in February 2020 compared with the previous year. So it is not just about the sudden higher unemployment rate, but also candidates' unwillingness to move at the moment of crisis that will slow down the recruitment industry.
The impact of coronavirus on the recruitment industry
Recruitment industry will be affected by all the previously mentioned trends:
People getting fired, those who have a job reluctant to change it, high volume recruiting for certain positions and higher unemployment rate.
Another important factor is the need for digitization of the entire recruitment process. In the time of the coronavirus crisis, recruiters won’t be able to do their jobs without modern recruitment software.
It's up to recruiters to be flexible and quickly adapt to ongoing changes in the job market. Those who can do that will thrive, while others might face some serious challenges.
If you’re interested to learn how TalentLyft can help you do that, please check our blog post: Hiring in Time of Coronavirus: How Can TalentLyft Help?
