The sudden outbreak of the coronavirus epidemic in Wuhan, China in the concluding months of 2019. This indicated an alarming call for countries across the world. Due to its rapid augmentation in the countries, the virus turned into the shape of a dreaded pandemic. The unexpected crisis brought our lives to a halt! People from all walks of life were deeply affected by the unprecedented clash.
The World Health Organization laid out certain guidelines for global adherence. The administrative body ruled some crucial steps that must be followed by one and all. In order to avoid the SARS-CoV 2 respiratory condition, you have to wear masks, practice social distancing and wash your hands with soap for at least a minute.
Throughout this process of incubation and resilience, the inflation scale multiplied, employment rate dipped, world economy toppled drastically and the undeniable health crisis left all in hopelessness and fear. Jobs in Mumbai became a difficult deal to crack for the prospective candidates, seeking opportunities to learn and prosper.
This article unfurls some pointers on how the COVID-19 pandemic had left people unemployed and the candidates looking for jobs in Mumbai, of their interest.
Crisis Crunch: the pandemic phase
Unemployment rate surged drastically in the landscape of Mumbai.
The Centre for Monitoring Indian Economy (CMIE) stated some triggering statistics that was conducted pan India in the pandemic phase.
- The number of employed and salaried personnel who lost their employment sources amidst the pandemic increased to 18.9 million.
- In July this year, 5 million people became unemployed.
- The intensity of unpaid and informal jobs surged at an unexpected pace.
Reasons for a decrease of jobs in Mumbai
1. No production
Jobs in Mumbai went on to a stagnated growth with the advent of the coronavirus pandemic. It became difficult for all to search for jobs within their expertise and areas of interest. This also led to an escalated disequilibrium in the market situation too. Since there was no scope for jobs in Mumbai, the production rate declined significantly.
In this market distortion period, surprisingly, neither the demand increased nor there became a possibility to produce more. Thereby the profit margins dropped and companies started sacking employees to balance the expenses.
2. Less employee capacity
The second in line comes the less employee capacity practiced by companies to go with the flow. To put it in a dignified and comprehensive way, it means that if the production is stopped, jobs in Mumbai will not be generated thereby the company will be in no position to recruit new personnel.
The less employee rate will enable the companies to function in a minimal way and meet company requirements suitably well.
3. Negligible turnover generated
Turnover of a company is referred to the overall amount of funds that are received by the enterprise in return of elevated sales of the goods and services over a specific period of time. While calculation of the turnover ratio no VAT or discounts are being discarded and thereby it is often acknowledged as ‘gross revenue’ or ‘income’.
The deduced turnover ratio is a result of lower supply and demand graphs that the companies faced in Mumbai. As a result, companies could not employ more candidates and thus no earning opportunities were generated.
4. Adherence of social distancing
The most prudent guideline issued by the World Health Organisation is to maintain a minimum of six feet distance to prevent the spread of coronavirus. This is one of the secondary reasons why people were left unemployed and hopeless in the pre-pandemic period.
The company officials allowed the work from home for some employees but unfortunately, sacked the major proportion of its personnel to maintain the profit and expenditure ratio.
5. Decrease in market volatility
You must have often heard about the term market volatility. For those who have discovered the term yet, Market Volatility is the ceaseless movement of investment prospects with an up and down flow. In more technical terms, when a company is not consistent in gaining investment or in its performance index, then there are higher possibilities of loss than gains. It can be in the form of a singular investment over a stock or acquiring the whole market stocks as an investment.
Thereby, if earnings are less, there will be a less probability of companies hiring candidates, despite their potential, talent and expertise.
The final verdict
The COVID-19 pandemic had led the world to a standstill leaving a space for myths, taboos, job loss, anxiety and depression related issues. Mumbai, despite being the mega city of India, faced a major backlash in this isolation period. The above listed problems are the key elements that affected the city as a whole!
With proper infrastructure and human welfare schemes, such unprecedented crisis-like situations can be tackled with all grit and patience. Moreover, the companies in Mumbai need to go more resourceful and look for prospective exigencies with a positive lens.