These predictions largely depend on how long the countries will persist in low economic activity. The worldwide recession caused by the coronavirus will most likely terminate a large amount of new employment positions as well as existing ones, CareerBuilder data shows that the highest cut in new job openings since the pandemic is in the entertainment, arts and recreation industry. An inflation is due to occur caused by the low consumption of the worlds population and the increase in subsidies, aids and loans the pandemic is forcing governments to give out. However there may be an increase in service/ temporary jobs for the young population that is less vulnerable to the virus as the rest of the population may be unwilling to expose themselves to the virus or even be obliged to remain in quarantine longer. According CNBC large gatherings such as concert or sport events are not predicted until a vaccine is invented or treatment significantly improves which is not predicted to happen before 2021.
Although Trump predicts a speady economic recovery and is eager to get the country active and running again people are reluctant to get back to their normal routines. June’s projected daily death rate in the US is as high as 3000, but the president of capitalism’s motherland is willing to lose lifes and save the economy. A miracle boom in America’s recovery from the coronavirus is highly unlikely. Instead economists predict a slow U-shaped recovery of the US economy, with a low level of GDP after the lift of the quarantine but eventually returning to its pre-pandemic state.
Switzerland has suffered from the highest rate of unemployment in three years with a rocketing increase of 3.3% in just the month of April 2020, increasing the number of unemployment to 153,413 people. Youth unemployment (between the age of 15 and 24 years now stands at 17,191 people, the high rate of unemployment is creating a very competitive job market. As a solution to unemployment the UDC wants to temporarily lift the free movement of people prioritising the employment of Swiss residents, redirecting the distribution of hundreds of millions of francs abroad back into Switzerland.
Switzerland is considering to launch the CST (Cargo Sous Terrain) project of an underground cargo network of self-operating electric vehicles. The project would be privately financed by stakeholders including Credit Suisse, Zurich Cantonal Bank, Swisscom, Coop, Migros and a large number of other Swiss giants. The CST project would create thousands of new well paid jobs for all sectors strengthening the Swiss economy and reducing unemployment in Switzerland.
Questions for further studies:
If the the suspension of free movment goes through, will it affect MNC’s? e.g: Néstle, Procter&Gamble, Tuppawear, etc..
How will the ease of safety regulations related to the coronavirus affect Trump’s re-election?
Will the launch of the CST project create enough jobs to prevent free movement suspension?
- https://www.theguardian.com/us-news/2020/may/05/donald-trump-coronavirus-economic-recovery (C)
- https://www.cnbc.com/2020/05/06/when-will-sports-and-concerts-come-back-after-coronavirus-2021-likely.html (D)
- https://tradingeconomics.com/switzerland/unemployment-ratehttps://tradingeconomics.com/switzerland/unemployment-rate (E)
- https://www.thelocal.ch/20200504/explainer-how-do-switzerlands-major-parties-want-to-move-its-economy-forward (C)
- https://www.finews.com/news/english-news/40735-coronavirus-marshall-plan-investments-switzerland?start=1 (C)
- https://www.finews.ch/news/banken/30394-credit-suisse-cargo-sous-terrain-cst-credit-suisse-helvetia-zkb (C)