Coronavirus Layoffs: What Really Happens
Summary
- Businesses around the world are facing liquidity problems. As a result, companies are using layoffs and unpaid leaves as solutions. The condition will likely continue for weeks, considering the Covid-19 pandemic does not seem to stop spreading anytime soon.
- The economic crisis can potentially cause an unstable social condition since the level of unemployment and poverty is skyrocketing. The worsened social situation at the moment can create national political dynamics.
- The pandemic also hits hard the primary source of the Indonesian economy, the household consumption, forcing the government to increase the social protection expenditure to keep the economy running. As a consequence, the government’s ability to spend money in other sectors, especially the capital expenditure, will decrease.