Labour market post Covid
Lock-downs are imposed by many countries. International borders are sealed and trade has a hit a low. Manufacturing plants are closed due to lack of labour. Daily wagerers are out of jobs. There is less money with people to spend even for food. All this has led to a reduced economic activity. Market indices have fallen and even long term mutual fund returns are in the lower single digits. So, is there a recession that is looming ? Or are we already in a recession? There are enough evidence to suggest that this dip in the economic activity is not due to any structural deficiencies. It is expected that the economic activity will pick up post lifting of the lock-downs. But, when will this lifting happen and when will international trade resume normally. My thoughts from Indian standpoint As India opens its economic activity there is going to be a shortage of labour supply due to the reverse migration that has happened. Migration happened due to the lack of opportunities in one p...