The long-term effects of the pandemic: insights from a survey of leading companies

The long-term effects of the pandemic: insights from a survey of leading companies

By Eduardo Maqui and Richard Morris

The article summarizes the results of the survey they did on how the leading euro area companies perceive the long-term impact of the COVID-19 pandemic on their respective business. Aside from a short-term decline in economic activity before the pandemic began, the COVID-19 pandemic has brought a lot of changes in how businesses operate and behave. Of all the respondents they asked to answer the survey, about 40% cited that the remote setup would have a long-term impact on their business. The second most long-term impact on the business would be the adoption of digital technologies and they are accelerating to adoption of these new digital technologies that would change the way they operate in the long term. And around one-fifth of the respondents cited the increase in virtual meetings and e-commerce. Based on the survey they did, most respondents also considered that the COVID-19 pandemic would also have a positive impact on their productivity. This increase in productivity is the result of the remote setup because many employees have increased their work efficiency because they have a better work-life balance in this kind of setup. This setup has helped businesses to maintain their production in spite of restrictions and a decrease in employment. Aside from a positive impact, it also has a negative impact on employment since many employees lost their jobs because of the pandemic. Almost 30% of the respondent also cited that their business has experienced a decrease in their products, goods, or services which is one of the main long-term effects of the COVID-19 pandemic for their business. This effect has an impact on the working habits or behavior of the employees since they will have fewer working hours due to the decrease in demand and more individual has chosen to do online shopping.

In my own experience, I have known a lot of friends who lost their jobs because of the pandemic, and they are now working in a new company on a work-from-home setup which is good for them because they have a better work-life balance, and they were able to spend time with their families.

 

Reference

Maqui, E., & Morris, R. (2021, January 4). The long-term effects of the pandemic: Insights from a survey of leading companies. European Central Bank. https://www.ecb.europa.eu/pub/economic-bulletin/focus/2021/html/ecb.ebbox202008_06~bad87fcf9b.en.html