The Economic Impact of Covid-19 pandemic on Labor Market and Stock Market

Abstract

Listen

Translate article

The pandemic has caused severe unrest and uncertainty in the labor market. Share prices have fallen sharply. However, the reasons behind it and the related policy effects still lack a unified explanation and summary. Therefore, the topic of this paper is the impact of the epidemic on the labor force and the stock market. The research method of this paper is as follows: firstly, the relevant data such as unemployment rate, hiring ratio and purchasing manager index are collected, and then the data are analyzed. The study found that the main reasons for the decline in labor demand may include business shutdowns, more cautious business investment and the psychological impact on workers. Fears of a potential recession, supply chain disruptions and uncertainty over the duration and severity of the outbreak have driven the rapid fall in share prices. The relevant policy recommendations further encourage local governments to use the surplus funds from unemployment insurance and other sources to support enterprises in maintaining employment stability. This paper will encourage the implementation of policies that delay or partially refund social security contributions. And strengthen the strategy of partially refunding unemployment insurance premiums, promoting local employment opportunities, and providing subsidies to ensure the overall stability of the employment situation. These policies are constantly evaluated and adjusted in light of changing economic conditions and employment trends to help maintain employment levels and support businesses during difficult times.