Effects of COVID 19 on Global Recruitment and Job Market

The whole Business-world had to surrender themselves to the deadly effects of COVID 19. With the rapid growing trans-nationalization, our problems have also become transnational. In the contemporary world, the spread of infectious diseases poses a global threat. The whole recruitment scenario is experiencing a paradigm shift. Work from home and restricted hiring has affected global recruitment.

When we talk about globalization, it is not just trade, exchange of goods, or travel, but also global spread of diseases like Tuberculosis, malaria, different kinds of flu, etc. For instance, the eruption of BSE, or “mad cow disease” in Europe can be taken as one example of how business and trade can contribute to the spread of fatal diseases.

Unemployment Rate before COVID-19

Expanding your resources, as a business, is what the globalized world taught us so far. However, the present scenario in times of a pandemic is causing a hindrance in creating a more efficient global market. Recently, the Director-General of ILO, Guy Ryder informed that at the start of 2020, before COVID-19 spread, the global unemployment rate was already at around 190 million. This pretty much tells what the post-COVID market would look like. It is going to be a shattered, with few companies that will rise stronger than ever before. 

Below are some reasons that will give you an insight into how current global recruitment is like and what shape it will form in the post-COVID world.

Global Unemployment

Generally, the recruitment sector seems to be in huge trouble. Taking an example of ZipRecruiter that laid off approximately 50% of its workers during times of this pandemic. With the rapid increase in unemployment, people have started applying for tons of jobs per day all over. According to a survey conducted through ZipRecruiter, almost every job seeker is quite motivated to find one as soon as possible

Candor keeps updating us all with their extensive data on hiring, freezing hiring, or lay off rate in almost over 1700 businesses in Global recruitment. View the picture attached below and to read in detail, look at the source mentioned next to it.

Incline in Currency Exchange rates

The outbreak of coronavirus worldwide is going to be revolutionary and one of the many sectors in which it has caused disturbance is foreign exchange. Every single part of the market and economy is going to be affected by COVID-19. For better understanding, read the three categories:

• Demand shock
• Supply shock
• Financial Shock

COVID-19 resulted in appreciation of the US dollar and depreciation of other currencies, obviously. But as of now, the currency exchange rates keep fluctuating and the adverse effects of dollar dominance might cause a hurdle in the global recruitment sector. The recruitment of new staff from far-flung areas is going to be digital and this will overall affect the job package for the candidate.  In the last two weeks, the U.S. dollar has strengthened by 5.3% against the Euro, 5.9% versus the Swiss Franc, 7.7% against the Japanese Yen and a whopping 13.9% versus the British Pound.

Regional Impact on Job Market

According to Stephen Walt, professor of international relations at Harvard University, COVID-19 is going to reshape the structure of the world, making it less free, less open, and less prosperous. This pandemic seems like a catalyst that could speed up the process of the the progress of nationalist policies

There are a lot of factors which will be considered, but for now, it seems as if for the next few years, at the very least, states will be very vigilant of global integration as well as global recruitment. This pretty much tells us how badly this pandemic will limit activities and interactions between states including trade and business. As far as market, hiring, and job opportunities are concerned, effects of Covid 19 on Global recruitment are , But the Business world has adapted quickly and new opportunities have risen quickly.

People might want to participate in jobs worldwide, send their CVs, sign up for global recruiting agencies but their state and region might act as a  barrier. The world after this pandemic will force people to avail opportunities within their borders instead of hunting for foreign options. Similarly, this will be a huge challenge for global recruitment agencies as they mainly target overseas talent and attract them by capitalizing on lower  labor costs in different regions. All in all, the post-COVID-19 scenario of recruitment will witness a decline from labor to efficiency. 

Talking about the vulnerabilities of different demographic groups that are spread all across the world in several countries. For example, in the US, the minorities, asians, black, BAME workers and their jobs are at risk. All around the world, states will be firing the “outsiders” and filling those posts with their own people and first citizens. This a practice that will be observed even after this pandemic ends.

The regional impact will pose a threat to the recruitment and job market. For the first time ever, regional productivity differences and different socioeconomic factors across regions will change the recruiting dynamics by limiting options for everyone.

Restricted Recruitment Activity

Not very technical, but another aspect that will restrict recruitment activities globally is the hesitant and scared world. With the rise in inflation rates, imbalance in the whole market system, incline in currency exchange rates, etc. people will be reluctant to step out of their bubble and experiment with new opportunities. WaveTrackR’s statistically shows us a decline in the number of applications that go to each industry.

Now, this does not mean people do not need jobs but they are hesitant in exploring all new options and want to stick to their old jobs, to be on the safe side (Job Security). Moreover, employers have cancelled in-person recruitment. Recruitment has been digitized to a great extent. Due to this challenge hiring process has changed too.

How can a Recruitment agency help you in hiring during COVID 19

In these abnormal times, recruiting agencies are gradually adapting to the reshaped idea of the job market. They have started to review their strategies, look for day to day activities, make connections with clients, and introduce stability to the overall arrangement.

Teleport Manpower Consultant has also developed new SOPs for facilitating recruiting during Corona pandemic for successful online job placement. We are conducting online screening and digital interviews to find the best candidate for employers.

Similarly, as the situation continues to evolve, we have been adapting too. Businesses all over were aware of remote working but seems like this is going to become a common practice in the job market. And for that matter recruitment agencies will help you in making a transition from office environment to working remotely. In times like these, where the market is going in crisis, it is the responsibility of the recruitment agency to focus on giving reassurances to the staff, adding value, offering support and guidance, etc.

Tips for Candidates and Employers

Whenever a crisis hits the world, the after results are never pleasing. From making colossal changes in the arrangement of many things that run the world, it also disturbs the world equilibrium. 

We know a worldwide health pandemic is a solid reason for both employers and candidates to hesitate but this still cannot stop the recruitment process. So better be prepared for it. The agencies are probably looking for candidates online. They are utilizing recruitment software, online job portals, or social media to put their concerns out there.

Digital recruitment has already taken over. Here, the candidate can get an edge. He/she should work best on his communication skills and IQ level to win the offered position. (s)he will get an edge as the interview will be conducted through computers and there will be no physical meeting held between the employer and the candidate.

However, this arrangement might give a tough time to the employers. As it becomes difficult to pick the most suitable candidate sitting miles away but if we look at the bright side, it will give them a chance to consider recruitment on a global level. We don’t know when this virus will leave the world, but as soon as it does, employers and companies will be left with very little time to hire the best suitable match in order to compete with the next phase of growth. For that matter, firms need to digitize recruitment, carry virtual meetings, and stay connected online with promising talents for the future.