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Impacts from Covid-19 on Businesses and Organizations

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According to the consulting company McKinsey & Company, it could take various sectors more than five years to recover to 2019 level contributions to GDP.13 Specifically, the worst projected sectors globally that have the longest recovery period (up to 2025 and beyond) include arts; entertainment; recreation; hotels and food services; educational services; transportation and warehousing; manufacturing; and mining, oil, and gas extraction.14 McKinsey goes on to suggest that economic impacts across the globe could take one of three paths:

1 A quick recovery during which lower fatalities occur in younger people and working adults.

2 A global slowdown that assumes most countries are not able to control the spread of the virus, especially in heavily populated areas, affecting small- to medium-sized companies more acutely.

3 A pandemic and recession arise, assuming that the virus is not seasonal.15

During the early peak of the pandemic in 2020, there were 20,500,000 people who lost their jobs in the United States alone (14.7 percent) between February and April.16 The 10 most impacted sectors of the United States job markets included the following areas:

1 Hotels lost 42.7 percent of jobs.

2 Sports and performing arts lost 45.4 percent of jobs.

3 Furniture and home furnishing stores lost 46.3 percent of jobs.

4 Restaurants and bars lost 48.1 percent of jobs.

5 Motion picture and sound recording lost 48.3 percent of jobs.

6 Dentist offices lost 53.3 percent of jobs.

7 Laundry and professional services (pet, parking, dating, etc.) lost 53.5 percent of jobs.

8 Clothing and accessory stores lost 58.9 percent of jobs.

9 Amusement parks and casinos lost 59.9 percent of jobs.

10 Scenic transportation lost 62.1 percent of jobs.17

The New Normal in IT

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