The COVID-19 pandemic has caused economic problems across the world, as businesses and industries shut down due to lockdown measures initiated by governments. With people not allowed to step outside their house except for essential services, most businesses have been left without customers, and so have had no option but to close operations.
Whether this is temporary or permanent remains to be seen, as governments and global organizations try to provide financial help and relief to companies and employees that have been hit the worst by this crisis.
Nevertheless, even if in the short-term, there have been millions of people who have lost their jobs across the world, with the example of the United States, where the number of people filing for unemployment benefits has crossed 20 million over the last month, only showing how bad the problem is and how quickly it is escalating.
There are definitely some industries that have been hit worse than others though. One of the worst-hit has been the sports and entertainment sector, with literally every major sporting league and event being postponed due to the pandemic. This is causing huge problems, especially at the lower levels of sports, where players who do not earn the big bucks are struggling to make ends meet in the absence of regular incomes, while the same is happening for clubs as well who have suddenly lost out on revenue from ticket sales and all the other purchases that happen around a matchday.
Amusement parks have shut down as well, with even the likes of Disney’s parks and Universal Studios being forced to close doors due to the prevailing health advice of staying indoors. Staying on this theme, casinos have also been badly affected, with the gambling hotspots of Macau and Las Vegas coming to a standstill. Not only there, but almost every casino across the world has also shut shop for the foreseeable future, with many reducing their staff numbers, even if temporarily, or placing them on unpaid leave, to cope with the sharp drop in revenue.
Another similar industry that has been badly affected is the hospitality and tourism sector. Hotels are reporting occupancy rates of as low as 1-2%, as people have been forced to cancel holidays and travel. It is a similar story for many airlines, especially those operating in countries which have complete travel bans in place. American airline companies have already approached their government for up to $50 billion as a bailout package, and that is certainly not going to be the only case of airline companies needing to be saved from bankruptcy through government intervention.
Retail firms are also reeling, as people can hardly step out to shop during these times. However, even eCommerce companies are struggling, as travel restrictions mean that they cannot fulfill deliveries, while they are also struggling on the supply end due to lockdown measures. This is largely the case in countries like India where there is a full lockdown in place; however, the likes of Amazon are doing extremely well in the United States, as they have now become one of the only suppliers of goods to the vast majority of people.
These are just a few examples of some sectors and industries that have been hit particularly hard by the coronavirus. There are probably millions of businesses that are struggling, across a wide spectrum of sectors, all over the world, and these unprecedented times are unlikely to end anytime soon.