Covid-19: The Black Swan of Labor Market

Abstract

Black Swan is a metaphor that economists generally use to describe events that are difficult to predict and unlikely to occur, with the potential to deeply affect the financial markets and economic stance. The “black swan” of the global economy, Covid-19, brought the lockdowns of workplaces, global recessions due to both demand and supply shocks, reconfiguration of logistics and supply processes, production stops due to shortages of raw materials, and sudden-stop of the economies on the world agenda. Many restrictions on daily life in the fight against the pandemic, such as social distancing, closure of borders with other countries, bans from leaving the house, have created concerns about economic recession on a global scale.