The Current Economic Environment
The Covid-19 Pandemic has undoubtedly had countless effects on the economies of many industries. Some have greatly adjusted their strategies to fit current safety guidelines; however, many have not been this adaptive and have suffered the consequences. Countless jobs have been lost and while we will certainly recover from this pandemic, many industries will remain forever changed.
As a result of safety guidelines and lockdowns, many industries have suffered with no hope of recovery until after the pandemic and people return to their normal lives. The restaurant, theme park, and personal fitness industries have seen unprecedented revenue declines mainly due to lockdowns and occupancy limits. The travel and hospitality industry has taken the biggest hit perhaps. Unemployment in this industry has risen from 6.4% in January 2020 to 23.1% in 2021. To summarize the industry's loss of business, spending on travel and hotels has seen a 42% decline since 2019, nearly a 500 billion dollar loss. The commercial real estate industry may not recover for a long time. As many retail companies shift to online shopping and an increasingly large number of jobs can now be performed from home, companies have less of a need to waste money on stores and office spaces.
While many companies have taken hits, we have seen unparalleled modifications to business strategies to account for the new world we live in. Capitalism has the tendency to adapt. In the restaurant industry, the application of delivery apps has been broadly expanded, providing a number of jobs to the unemployed. We have also seen a rise in useful technology such as contactless payments and QR code menus. The entertainment industry has been drastically affected as well. We have seen an extraordinary shift to streaming services, with many movies releasing online instead of in theaters. While it is the case that many theaters will reopen, it's unlikely that this aspect of the industry will see a full recovery. Movie theaters may never be as common as they once were.
Despite the havoc that Covid-19 has reeked on many industries, there is no doubt that the economy will experience a post-Covid-19 boom. Many industries will begin to rebound, some returning to normalcy. A number of them have been altered forever, many of these changes for the better. If there's one thing this pandemic has shown us, it is how innovative and adaptive we can be.
