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The crown crisis was felt first in tourism and catering, areas that are not yet recovering, and according to estimates, it does not appear to be anytime soon. Commerce, gastronomy and even construction were soon affected, and all this is a great alarm signal for citizens of Serbia who live and work in the diaspora, because they are the most employed in those sectors.
According to the latest data, around two million Serbs live in the diaspora. Up to 650,000 of them live in the United States, while there are more than 500,000 in Germany and Austria. And in recent weeks, most of the news about the difficult situation in the labor market has come from these countries.
It is claimed that at the end of January the number of unemployed in Austria reached 535,470, which is the highest since World War II, that in Germany during the crown crisis the 14-year job growth ended, and in America there are almost twice as many unemployed as before the crisis.
As before the crisis, citizens outside of Serbia found employment for the first time in catering, tourism, gastronomy and often worked as waiters, salesmen or, say, in production companies, it is clear that many lost their jobs. jobs at the beginning of the influence of the Crown. about the economy. And those who kept their jobs are now scared, of course, except for those employed in healthcare, where certainly, by the nature of things, they’re still in high demand.
Even at the beginning of the pandemic, analysts pointed out that they first lose their job due to a contract, part-time, mostly with more flexible contracts, which is the most common case with the type of employment of our citizens in other countries. Many returned to Serbia even then, hoping for better days. However, even those who managed to save jobs are now left without them because economies are not recovering yet and additional lockdown measures have only exacerbated the situation.
Now, according to economists, employers have also realized that it pays them more to pay unemployment benefits while they wait for the pandemic to end.
The blockade particularly affected the labor market
In Germany, for example, during 2020, the annual average number of employees was 44.8 million, which means that there were 477,000 fewer employees than in 2019.
“Thus, during the crown crisis, job growth that lasted 14 years ended, including during the global financial and economic crisis of 2008 and 2009,” the statistical office said.
The largest decrease in the number of employees is expected in the service sector (281,000), which includes commerce, transport and restaurants. During the last year, most jobs disappeared without permanent contracts, while, as they say, almost two million people have so-called part-time jobs.
The Austrian Labor Minister recently pointed out that the lockdown measure has a negative effect on the labor market.
“The balance for January shows that due to the pandemic, we are still in a very difficult situation in the labor market,” said Labor Minister Martin Kocher.
The director of the Employment Service (AMS), Johannes Kopf, affirmed that the tourism situation is particularly negative, and that unemployment in this economic branch has doubled compared to January last year.
The official unemployment rate in the United States is 6.3 percent, but according to analysts, a large number of people left the job market in April and virtually no one has returned since June.
“The unemployment rate is actually almost 8.3 percent,” Jason Furman, an economist at the Peterson Institute for International Economics (PIIE), said in a Twitter post.
More than a third of the unemployed have been out of work for more than six months and six million people work part time.
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