The Coronavirus pandemic, in the past days, has shut down businesses and several industries which has resulted into an economy relapse. However the gradual ease of lockdown might result into a gradual economy recovery; however, the economy might not recover fully without the Covid-19 vaccine. This fact has also been confirmed by the Federal Reserve Chairman of the United States of America, Jerome Powell as he also stated that the pandemic really attacked the labour market.
Considering the attack of the pandemic on the labour market especially as the rates of unemployment keep going higher, economy recovery might take a while especially as the rates of unemployment keep going higher. One disadvantage of unemployment is that “there’s a real risk that if people are out of work for long periods of time, that their skills atrophy a little bit and they lose contact with the workforce. This is something that shows up in the data — that longer and deeper recessions tend to leave behind damage to people’s careers,” Powell said.
The government should however be cautioned as to the full opening of the economy without a vaccine so as to prevent another case and spread of the Coronavirus pandemic as seen in Wuhan, China.