Coronavirus Hurting Business Revenue and Migrant Workers

Matty-Sways

Some American companies are preparing for up to a 50% decrease in revenues because of the coronavirus outbreak.

More specifically, if the outbreak lasts through the summer and if current work and travel restrictions are maintained, then revenues are expected to drop dramatically. Currently, China is quarantining foreign travelers coming from outbreak hotspots, such as Italy.

A survey was conducted in mid-February by the American Chamber of Commerce in China. The survey garnered responses from 169 companies. The survey results reflect general trends that have been reported in terms of business impacts from the coronavirus. For example, migrant workers are hardest hit by work restrictions. Migrant workers typically live in rural areas, work in urban areas and cannot complete their job remotely.

As a result, work restrictions keep factories closed and migrant workers out of work. Additionally, 94% of respondents have said that they are implementing work from home policies for their white-collar employees. In order to mitigate the disproportionate impacts on blue collar workers, the Chinese government has worked to reopen factories in regions that were not as hard hit by the virus.

“The crisis is real, and people are prioritizing the virus first and resumption of the economy second. Getting protective gear and getting it in the quantities necessary to keep the workforce safe is a challenge for a lot of companies,” AmCham Chairman Greg Gilligan said.

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