Covid 19 is considered a "black swan" effect.
While we have been fighting jobs going to China, this Chinese born virus is shifting jobs to other cheap labor countries.
This is an unpredictable event that is beyond what is normally expected of a situation.
In just a few weeks a ramping economy would come to complete standstill. Any business that could have their employees work remotely, did so.
Remote employees made companies take a step back and access their bottom line.
The top 3 expenses for most companies are: payroll, rent and insurance.
Video conferencing solutions like Microsoft Teams or Zoom overnight changed the corporate expense landscape.
No longer would most companies need large office space if their employees could work remotely. It also highlighted something even more important.
If an employee didn't need to physically be in the office, why couldn't a company hire freelancers (and in other countries where labor is cheap?).
Videoconferencing combined with freelance services like Fiverr and UpWork could (and definitely will) make companies much fiscally leaner.
Not only does this eliminate the rent expense and insurance costs, but the payroll expense could be drastically reduced.
So while the market will be fixated on the unemployment rate or number of new jobs created, a better gauge might be to look at profit margins.
It's no coincidence that the NASDAQ (mainly tech companies) made an all time high when our unemployment rate is flirting with all time highs too.
Things To Ponder:
Could the combination of cloud computing, automation and remote working be one of the best things to happen to our economy?
Could the Covid 19 actually be the start of a new "age", the "Remote Age"?
Does anyone else find it odd how quickly the FDA is moving on THIS virus, THIS year?
A word to those knucklehead protestors too. Whatever trivial thing offends you now is NOTHING compared to when you find out some kid in the Philippines has taken your job for A LOT less pay and no benefits.
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