Connect with us

Datastream

One Year In: How the Pandemic Impacted Employment Around the World

Published

on

How the Pandemic Impacted Employment Around the World

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

How the Pandemic Impacted-Employment Around the World

The Briefing

  • The global pandemic had a significant impact on average working hours across the globe
  • In 2020, 8.8% of global working hours were lost compared to Q4’2019
  • The amount of working hours lost in 2020 is equal to 255 million full-time jobs

How the Pandemic Impacted Employment Around the World

One year in, the global pandemic has impacted employment and changed the nature of work in a multitude of ways.

As job loss rose across the globe, many countries introduced job retention schemes to steady unemployment rates. At the same time, working hours for many who held on to their jobs were reduced.

To put it in perspective, COVID-19’s negative impact on working hours globally has been around 4x more than that caused by the Global Financial Crisis in 2009.

Working Hard or Hardly Working?

As of January 2021, an estimated 93% of the world’s workforce lives in a country with some type of workplace closure restrictions still in place.

While profits were slashed across many industries, a majority of companies actually avoided firing people. However, 64% of firms either reduced wages, hours, or furloughed workers temporarily.

Compared to Q4’2019, total global working hours were reduced 8.8% in 2020. This is equivalent to approximately 255 million jobs.

Here’s a look at the working hour losses in a number of different countries.

Country2020 Work Hour Losses Compared to Q4'2019
Peru27.5%
Honduras24.3%
Panama23.5%
Argentina21.0%
Colombia20.9%
Bolivia20.5%
El Salvador19.4%
Ecuador17.6%
Costa Rica17.5%
Nepal17.4%
Armenia16.8%
Chile16.7%
Guatemala16.4%
Kuwait16.4%
Dominican Republic15.5%
Brazil14.9%
Bahamas14.8%
Eritrea14.7%
Turkey14.7%
Cyprus14.6%
Azerbaijan14.1%
Morocco14.1%
North Macedonia13.8%
India13.7%
Venezuela13.7%
Philippines13.6%
South Africa13.6%
Italy13.5%
Myanmar13.4%
Portugal13.4%
Cape Verde13.3%
Spain13.2%
Georgia13.1%
Oman13.1%
United States Virgin Islands13.0%
Moldova12.9%
Slovakia12.8%
United Kingdom12.8%
Greece12.6%
Cuba12.5%
Guyana12.5%
Ireland12.5%
Mexico12.5%
Bangladesh12.2%
Uganda12.2%
Bhutan11.9%
Suriname11.8%
Kyrgyzstan11.7%
Algeria11.6%
Kazakhstan11.5%
Maldives11.4%
Paraguay11.4%
Jamaica11.3%
Trinidad and Tobago11.3%
Uruguay11.2%
Belize11.1%
Malaysia11.1%
Iraq10.8%
Malta10.6%
Austria10.5%
Barbados10.4%
Jordan10.4%
Lebanon10.3%
Eswatini9.9%
Sri Lanka9.9%
Saint Lucia9.8%
Bosnia and Herzegovina9.7%
Guam9.6%
Egypt9.5%
Ethiopia9.5%
Kenya9.5%
Qatar9.5%
Rwanda9.4%
Canada9.3%
Congo9.3%
Libya9.3%
Saint Vincent and the Grenadines9.3%
United Arab Emirates9.3%
Israel9.2%
Pakistan9.2%
United States9.2%
Sudan9.1%
Zimbabwe9.1%
Bahrain9.0%
Liberia9.0%
Guinea-Bissau8.9%
Nigeria8.9%
Sao Tome and Principe8.9%
Romania8.8%
Ukraine8.8%
South Sudan8.7%
Angola8.6%
Hong Kong8.6%
Puerto Rico8.6%
Equatorial Guinea8.5%
Russia8.5%
Uzbekistan8.5%
Chad8.4%
France8.4%
Gabon8.3%
Saudi Arabia8.3%
Indonesia8.2%
Western Sahara8.2%
Slovenia8.0%
Montenegro7.8%
Singapore7.8%
Syria7.8%
Gambia7.7%
Guinea7.6%
Haiti7.6%
Serbia7.5%
Lesotho7.4%
Tonga7.4%
Belgium7.3%
Comoros7.1%
Madagascar6.9%
Djibouti6.8%
Mauritius6.7%
Democratic Republic of the Congo6.6%
Afghanistan6.5%
Botswana6.4%
Fiji6.3%
Germany6.3%
Iceland6.3%
Senegal6.3%
Lithuania6.1%
Bulgaria6.0%
Tunisia6.0%
Channel Islands5.9%
Iran5.9%
Namibia5.9%
French Polynesia5.7%
Croatia5.5%
Japan5.4%
Mauritania5.3%
Vanuatu5.3%
Hungary5.2%
Mozambique5.2%
Sweden5.2%
Vietnam5.2%
Malawi5.1%
Central African Republic5.0%
Togo4.9%
Cambodia4.8%
Samoa4.8%
Australia4.7%
Ghana4.7%
Estonia4.5%
Thailand4.5%
Brunei Darussalam4.4%
North Korea4.4%
Czech Republic4.3%
Laos4.3%
Netherlands4.3%
Cameroon4.2%
Côte d'Ivoire4.2%
China4.1%
Albania3.9%
Taiwan3.9%
Sierra Leone3.8%
Switzerland3.8%
Turkmenistan3.8%
South Korea3.7%
Luxembourg3.7%
Nicaragua3.7%
New Caledonia3.5%
Poland3.5%
Denmark3.3%
Latvia3.3%
Mali3.3%
Benin3.2%
Tajikistan3.2%
Timor-Leste2.7%
Burkina Faso2.6%
Zambia2.6%
Mongolia2.5%
Norway2.5%
Somalia2.5%
Macau1.9%
Papua New Guinea1.8%
Solomon Islands1.8%
Tanzania1.8%
Belarus1.3%
Finland1.3%
Yemen1.3%
Niger1.1%
New Zealand0.8%
Burundi-0.1%

The loss of working hours has impacted Southern Europe, South Asia, the Americas, and the Caribbean most significantly. Not surprisingly, these regions are all heavily reliant on tourism and hospitality to fuel their economies.

Job Losses and the Future of Work

Working hour losses, however, do not just come from reductions in hours. The ILO approximates that the blame for working hour losses can be shared equally, with around half due to job losses and half due to a reduction in working hours.

Worldwide employment losses in 2020 were equal to 114 million jobs.

However, a large number of people have notably been deemed ‘inactive,’ rather than unemployed, reducing the global labor force participation rate overall.

ℹ️ Economic inactivity describes a situation wherein a person is either unable to work or is not actively seeking employment.

Although a rebound in working hours and jobs is expected in 2021, the pandemic’s effects on how we work, and the kinds jobs that are available will have a deeper long-term effect on the global labor force participation.

» Want to learn more? Check out our COVID-19 information hub to help put the past year into perspective

Where does this data come from?

Source: ILO
Details: The source defines workers as individuals aged 15-64. Full time jobs are defined using a 40 hour or 48 hour work week depending on the country. Additionally, the ILO used a multitude of national data sources on unemployment, furlough schemes, etc. to calculate working hour losses. Their methodology can be explored further here.

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Comments

Datastream

Bitcoin is the Fastest Asset to Reach a $1 Trillion Market Cap

Bitcoin is now part of a select very few assets that hold a market cap greater than $1 trillion. How long did it take to get there?

Published

on

Bitcoin fastest asset to $1 trillion

The Briefing

  • Bitcoin (BTC) hit a $1 trillion market cap in just 12 years, making it the fastest asset to do so
  • Investor sentiment towards BTC appears to be at extreme bullishness, with the asset adding roughly $500 billion in market cap just in 2021

Bitcoin is the Fastest Asset to Reach $1 Trillion

The world is moving forward at an accelerated pace. Historically, it’s taken multiple decades for companies to be worth $1 trillion. For bitcoin, it took just 12 short years to reach such a milestone.

To help put things into perspective, here’s a look at how long it took America’s biggest tech companies to reach the $1 trillion market cap.

AssetTime To Reach $1 TrillionCurrent Market Cap
Microsoft44 years$1.9 trillion
Apple42 years$2.2 trillion
Amazon24 years$1.7 trillion
Google21 years$1.5 trillion
Bitcoin12 years$1.1 trillion

Market caps as of April 12, 2021

Extreme Bullish Sentiment

Bitcoin has been subject to widespread commotion in markets.

At the start of 2021, the cryptocurrency had a more modest market cap of $500 billion, but has gained more than another $500 billion since. An onslaught of headlines has contributed to extremely bullish investor sentiment, including:

1. CEOs begin to show interest
Elon Musk and Jack Dorsey have made sizable investments in bitcoin through Tesla and Square, respectively. It’s estimated the gain from Tesla’s $1.5 billion bitcoin investment was greater than the profits from the entirety of their business in 2020.

2. New ETFs on the block
Multiple Bitcoin ETFs focused were recently approved by Canadian regulators and some have already launched on the Toronto Stock Exchange (TSX). For many years, the Grayscale Bitcoin Trust (GBTC) was the only readily accessible investment vehicle trading on equity markets that had exposure to BTC.

3. Financial institutions finally joining in?
Mastercard, Visa, and Bank of New York Mellon have made announcements to make it easier for customers to use cryptocurrencies.

On to the Next Trillion?

Future projections for the price of bitcoin are garnering more extreme and widening price targets.

The accelerated rate of change today has many of the Big Tech companies already inching closer to the next trillion in value. Will bitcoin follow suit?

Where does this data come from?

Source: coinmarketcap.com
Notes: Financial data is as of April 12, 2021

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Datastream

What The Data Says About Wealth Inequality

Over the past decade, the top 1% of U.S. households’ portion of wealth has gone from 28.6% to 31.2%.

Published

on

The Briefing

  • Today, the top 1% of U.S. households own 31.2% of total wealth
  • Data going back over 200 years suggests that wealth inequality in both the U.S. and Europe reached its peak in the early 1900s

What The Data Says About Wealth Inequality

Wealth inequality has gone through peaks and troughs throughout history.

Most recently, in the decade between 2010 and 2020, the top 1% of U.S. households’ portion of wealth has gone from 28.6% to 31.2%.

However, when expressed in raw dollars, things begin to look different. Wealth during the same period for the 1% went from approximately $17.5 trillion to $35 trillion. Meanwhile, the total wealth pool rose from $60 trillion to $112 trillion.

In other words, all households by category have amassed wealth during the same period, albeit at different rates.

Household Wealth PercentileAnnual Growth in Wealth (CAGR)
Top 1%6.54%
90-99%5.75%
50-90%4.97%
Bottom 50%3.30%

Source: The Federal Reserve

Drivers Of Wealth Inequality

The longest bull market in history, which went from March 2009 to February 2020, has been a big driver for the recent divergence. The U.S. composition of wealth for the top 1% of households skews towards corporate equities and mutual funds, of which they collectively own $14 trillion. By contrast, the bottom 50% of households own $0.16 trillion.

It’s often said a stock market correction is long overdue. Since the top 1% of households clearly have the most skin in the game, if one were to transpire, wealth inequality would likely retract.

A Longer Term Look

Although the inequality of wealth is heavily discussed in today’s climate, the numbers have been higher before.

Wealth inequality, measured by the top 1% of U.S. households’ portion of wealth, was at its peak at the start of the 20th century. Back then, a harsh and more concrete class divide with lower rates of upward mobility were common themes.

2 centuries of wealth inequality

At its peak in 1910, the top 1% of U.S. households owned well over 40% of all wealth. Major world wars and the Great Depression seemed to be catalysts against this, and the years after WWII brought about some of the lowest levels of inequality seen in the modern era.

Wealth inequality has ebbed and flowed throughout history, but it has steadily crept back up in the last few decades. Today, its adverse effects continue to garner the attention of more people—including policy makers who are facing immense pressure to find a solution.

Where does this data come from?

Source: The Fed
Notes: This data covers Q2’2010-Q2’2020

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Subscribe

Join the 230,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular