Assignment on Macroeconomic 2022

Assignment on ALD 2204
Macroeconomics
Topic Name:Impact of Labor
Market on Business Cycle in
Covid-19 Situation
Understanding the impact of the spread of the coronavirus on the labor
market – both on people and businesses, as well as the responses to
government restrictions and government support packages – will be critical
to understanding the evolution of the Australian economy over coming
months.
The impact of COVID-19 on the labor market, and will avoid the need to
make changes to the Labor Force Survey that would adversely affect the
comparability of statistics over time and with labor market information for
other countries. The Labour Force Survey is designed to measure changes in
key labor market indicators with a high degree of precision.
 Demand-Supply-Impact
Job demand is high but labor supply is low.
 Lavor-Insentive Industries
Industries ,such as manufacturing ,FMCG hospitals ,hotels &restaurants,
IT,etc is severely affected by the outbreak.

 Labor Cost
Increase in labor cost , due to labor shortages across industries and
regions .Companies need to focus on strategic hiring plans and budget
forecast.
 Labor Supply Chain
Supply chains are disrupted and sourcing strategies are affected globally.
 Misclassification of Workers
High chances of misclassification of temporary and permanent workers
might arise ,as employers would ask them to do overtime and neglect
employment contract ,especially for temporary workers.
 Labor sourcing
Disruption is being experienced in labor sourcing.
 Global Impacts
Restricted trade ,exports and movement.
Workers are majorly affected by the Covid-19 virus, as their earnings are based
on hourly or daily wages. Loss of employment opportunities in cities due to
varying lockdown measures may lead to a temporary increase in the
unemployment rate.
The labor market is severely affected by the Covid-19 virus, as it has further
widened the demand-supply gap of labor across industries, especially labor
intensive ones. It would lead to significant increase of labor cost, and disruption
of supply chain.
More than 9 million employees have been furloughed through the
Government’s Coronavirus Job Retention Scheme (CJRS). Around 60% of the
employees in the Accommodation and food services sector and almost half of
the employees in the Arts, entertainment, recreation and other services sector,
and the Construction sector have been furloughed.
Around 2.6 million claims have been made on the Government’s Self-
Employment Income Support Scheme (SEISS).