COVID has affected the world and one of the ways it has affected is income earned has fallen. According to an article by Stephanie Nebehay of Reuters, income earned from work worldwide dropped by an estimated 10.7% or $4.7 trillion in the first 9 months of 2020. The figure was noted by a report by International Labour Organization (ILO).
Governments around the world have including income supports (you remember in the first tranch the US government gave an extra $600 a week), which is equal to 5.5% of global gross domestic product fro the 9 months of 2019.
The United National agency said a decline in employment numbers had generally been greater for women than men. In the 2nd quarter alone, global working time lost was 17.3%, equivalent to 495 million full-time jobs. It was estimated that 14% or 400 million jobs would be lost.
In the 3rd quarter, losses of 12.1% or 345 jobs are estimated to be lost.
Linking to dividend paying stocks, there is an old saying if there is a downturn if affects someone else, it is a recession if it affects you. The lost of so many jobs means the old saying is somewhat ineffective because the slowdown has affected almost everyone. If you have investments in dividend paying stocks, at least the dividends continue to be paid which helps you through the economic changes.
There are more questions than answers, till the next time – to raising questions.