There are few, if any, countries that have not felt the impact of the corona virus on their economies. The whole world actually encountered incredible obstacles and crisis due to the impact of the pandemic, and jobs and earnings were the first to be hit. And the strongest European economy – Germany faced a drop in wages, for the first time in 14 years, which proves that even strong economies have not remained immune to the crown.
Unlike the most developed countries in the world, Serbia is fighting very well, according to statistical data and statements of both domestic and international financial institutions. In our country and during the pandemic, wages have risen, both in the public and private sectors, and health workers in particular have received financial support due to the fight against the virus, or the nature of their work.
According to research by the International Labor Organization, government wage compensation schemes have mitigated the loss of income to about minus two percent at the level of the European Union in 2020.
The crisis, they pointed out, has seriously affected lower-paid workers. Using data from a group of 28 European countries, the report shows that without temporary subsidies, 50 percent of the lowest paid workers would lose an estimated 17.3 percent of their salaries.
Without state subsidies, the average amount of wages lost in all groups would be 6.5 percent.
The plans for reorganization and reduction of company costs were certainly felt the most by the employees, first of all by their wallets. In addition to a large number of layoffs, many companies have reduced production volumes or shortened working hours, which has led to a reduction in workers’ salaries.
Recently, there was news that employment growth in Germany, which lasted for 14 years, ended during the corona crisis, even during the global economic and financial crisis in 2008 and 2009. Now, the announcement of the Bureau of Statistics on the reduction of salaries was even more surprising.
In Germany, for example, during 2020, the annual average number of employees was 44.8 million, which means that there were 477,000 fewer employees than in 2019.
The Crown crisis, as it was pointed out, has negative consequences for the income of German citizens.
For the first time since the start of the survey in 2007, nominal wages fell last year, according to the Wiesbaden Statistical Office. Including extraordinary payments, gross salaries were on average 0.6 percent lower than a year ago.
At the same time, consumer prices rose by 0.5 percent, so that employees have in their pockets ?? remained realistic by about one percent less income than 2019, explained the Institute.
A public opinion poll by the “Imas” institute showed that 38% of Austrians say that they feel the financial crisis and the same number spend less money.
As the tourism sector, which makes up a large part of the country’s economy, has been virtually halted, it is clear that this has reflected in rising unemployment and declining wages.
The director of the Employment Service (AMS) in Austria, Johannes Kopf, recently stated that Austria is facing the biggest crisis on the labor market since the Second World War.
“After the crisis, a new boom will follow,” he is convinced, adding that for that period, the unemployed should be retrained and trained now. He sees vaccination as a turning point, because when the vaccine is available to the general population, then one can start from the growth of readiness for investments and consumption.
The American labor market already at the beginning of the outbreak of the pandemic faced a large increase in unemployment. Although early losses have been reversed, many Americans continue to face deep financial difficulties.
A PeW Research Center study finds that, overall, one in four adults in the U.S. has had trouble paying bills since the corona virus outbreak began, a third have dived into savings or retirement accounts to make ends meet, and roughly one in six borrowed money from friends or family or got food from a food bank.
Even if they did not lose their jobs, many workers worked part-time, or began to receive reduced wages due to the economic consequences of the pandemic. Approximately one-third of all adults said it happened to them or someone in their household, and 21 percent said it happened to them personally.
Most workers, according to research, who have experienced this now earn less than they did before the coronavirus outbreak.
As the media previously reported, the total number of requests for unemployment benefits in America during the pandemic exceeded 68.1 million, which is equal to the amount of more than 42 percent of the labor force in the country.
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