Chapter 2

Review of Related Literature

This chapter presents review of literature and studies on the effect of Covid-19 Pandemic on
employment situation of Barangay Kanalo Maasim Sarangani

The impacts of crises are never gender-neutral, and COVID-19 is no exception.

Covid-19 has upended societies and dramatically altered everyday life across the globe. Our present
circumstances, while unprecedented, have been profoundly shaped by persistent societal realities—
such as entrenched racial and economic inequality, the proliferation of misinformation, and anxieties
about the ability of the world’s democracies to confront major crises. In-depth social understanding will
be vital to apprehending the crisis and charting a path forward.

In the last decade, marvelous progress has been made in epidemiology; still, different infectious diseases
represent significant challenges to modern societies (Jordà et al., 2020). Empirical evidence relates
pandemics with loss of human lives, sufferings, and serious economic challenges and implications for
developing and the developed world (McKibbin & Fernando, 2020; Umar et al., 2020). The recent
pandemic COVID-19 originated in December 2019 from Hubei province, Wuhan city in China, has now
spread throughout the world. Currently, the top three epicenters of the pandemic are the Americas,
Europe, and Southeast Asia1. Surprisingly the cases from the developed countries of the world, which
were previously considered resilient and had strong healthcare systems, have proved to be more
vulnerable to the recent pandemic and its associated economic effects. Therefore, COVID-19 has
become a grave concern for the world population and economies. The adverse impacts of pandemics,
epidemics, economic crisis, a natural disaster on different macroeconomic variables is not a new
phenomenon, and numerous literature supports it, for example, Fasanya et al. (2020); McKibbin and
Fernando (2020); and Shaikh (2020).

On the economic front, the epidemics’ impacts go beyond morbidity and mortality, and it could be seen
as far-reaching to the world economies. Evidence proves that the pandemic’s effect has transmitted to
different pervasive sectors such as travel, tourism, supply chains, stock market instability, and oil price
fluctuations (Fairlie, 2020). For instance, currently, the world is experiencing a major disruption in
imports and exports patterns due to this outbreak. Similarly, due to travel-related restrictions,
economies worldwide have seen a further decrease in economic activities (Ji & Chu, 2020; Vanov, 2020).
The overall panic among consumers and firms has distorted the established consumption patterns and
created market anomalies (Baker et al., 2020). The COVID-19 has also posed an unprecedented
challenge to the European economies as the spread of the virus is picked up speed and causing damage
in almost every sector of these economies (Demertzis et al., 2020). According to the International
Monetary Fund (IMF) outlook for October 2020, in response to the recent economic turmoil of the
outbreak, the world economy is projected to contract by 4.4% in 2020, and it is even predicted to be
much worse than the financial crisis 2008-09. Simultaneously, the same report projected an 8.1 percent
downturn in GDP growth rate, a 0.5 percent inflation rate, and an 8 percent unemployment rate for
modern Europe in 2020. Additionally, the same report also projected these figures for 2021. According
to this report, these projections are 5.2 percent for GDP growth, 1 percent for inflation, and 8.5 for
unemployment in 2021 for modern Europe.

COVID-19 is an example of a public health crisis in our times; it has affected almost every sector of the
economy, locally and globally. Due to the decrease in demand for industrial inputs and energy sources,
the markets have experienced constant volatility in oil prices to further exuberate countries’ economic
performance (Zhang et al., 2020). Furthermore, due to lockdown and business closure, the firms are
hampered to pay their employees, causing a further increase in poverty estimates in different countries
(Kartseva and Kuznetsova, 2020). The stock markets are also down worldwide. On the positive side,
economic recovery and stability in the economies are projected in 2021 (Baker et al., 2020). The global
financial markets have experienced major disruption due to the on-going changes in the economies’
different sectors. Generally, the episode of volatility and uncertainty of the pandemic is widespread
globally, and the effect is not exceptional only to the European economies. Almost all the European
economies are suffering from the consequences of these disruptions, and therefore these economies
are experiencing higher unemployment rates.

According to the ILO monitor (2021), the COVID-19 has impacted the world of work badly regarding
reduced working hours and employment losses. Even these figures are higher than those which were
observed during the 2009 financial crisis. The same ILO document indicates that almost 9 percent of
global working hours were lost in the last year, which is alternately equivalent to 255 million full-time
jobs. The pandemic’s worst outcome is the massive loss in global labor income, which is approximately
equal to 4.4 percent of the global gross domestic product. Women and young (15 to 24 years old)
workers are more affected by this pandemic as compared to their male counterparts. The youth
unemployment rate has increased to 8.7 percent compared to the adult unemployment rate i.e, 3.7
percent. The ILO ( and ) (2020, ILO, 2021) also predicted the K shape recovery in the labor market that
some hard-hit sectors will be left behind in recovery compared to others. Therefore we expect to see an
increase in poverty and inequality as the aftermath of this pandemic.

Currently, the European economies are facing two challenges, the spread of the outbreak and its
impacts on different macroeconomic variables, such as employment and/or unemployment. It is
projected by different think thanks that economic instability caused by the current pandemic could bring
a long-term economic downturn in the European economies. In line with this, Wren-Lewis (2020)
explained that COVID-19 hurts economic growth and labor supply, inflation, and production costs.
Blundell et al. (2020) used the UK’s LSE-CEP survey and revealed that self-employed workers are the
most affected ones during this pandemic. According to the same study, the vast majority of the self-
employed workers reported that they work fewer hours than the pre-pandemic times. This further
upsurges their vulnerabilities towards the pandemic. Boneva et al. (2020) also explained the same
situation for three economies, i.e., UK, US, and Germany. According to their empirical findings, most
self-employed workers suffer from the long spell of unemployment during the recent pandemic. The
young group of workers and those who are having only college degrees are more likely to suffer from
job losses. In a similar context, Leka (2020) explored the impact of COVID-19 on the Albanian economy
and concluded that this pandemic impacted almost every sector of the economy specifically. It has badly
affected the growth rate of GDP, unemployment, inflation and interest rates, and the tourism sector.
Fernandes (2020) assessed the impacts of COVID-19 on 30 economies of the world. The empirical
findings reveal that service economies are at more risk and have to see a long unemployment spell.
Besides, tourism and trade sectors are badly affected in economies during the crisis, and also many
workers lost their jobs in these sectors. Rodríguez-Caballero and Vera-Valdés (2020) explored the long-
term and persistent impacts of the recent pandemic on economic growth and unemployment and
concluded that these effects are comparatively more persistent in terms of unemployment in the UK
economy.

Similarly, Farayibi and Asongu (2020) explored the impact of COVID-19 on key macroeconomic variables
in Nigeria. The study concluded that COVID-19 has a negative impact on GDP, exchange rate,
employment, and inflation. Similarly, Binder (2020) view that people expect longer spells of
unemployment during the different phases of the current pandemic in the USA. Besides these studies,
the researcher observed the employment and unemployment trends in developed countries are almost
similar. The employment trends in the European countries are almost similar as observed in the USA. In
a similar context for the USA economy, Coibion et al. (2020) revealed that most of the workers suffering
from job losses are no longer looking for work. Thus it brings further increase in the overall
unemployment rate. For the UK economy, Costa Dias et al. (2020) explained that most UK firms are not
posting new vacancies. The study also elaborated that in this scenario worst sufferers are those who are
working in low-skilled occupations. Even though a high skilled job market is also contracted due to a
massive outbreak in the UK. Campello et al. (2020) also view in the USA that higher-skill jobs have seen a
sharp decline compared to low-skilled jobs. In complement to the present situation, we have seen in the
previous literature that negative shocks mostly adversely affect employment levels in different
economies. On the same lines, Boeri and Jimeno (2016) also assessed the impact of economic recession
on unemployment for European countries. According to their empirical findings, countries with higher
wage flexibility have seen low unemployment rates, and on the other hand, countries with higher
employment flexibility registered a higher unemployment rate. In a similar context, Guichard and
Rusticelli (2010) explored the impact of the financial crisis on selected OECD countries and concluded
that the financial crisis economies have seen an increase in structural unemployment. In an interesting
study, Choudhry et al. (2010) captured the post-financial crisis scenario concerning its impact on youth
employment. The study found that young workers have to suffer a lot after the financial crisis and have
to stay unemployed for longer spells than their older counterparts in the labor market.

This study attempts to quantify the impact of COVID-19 on unemployment in the selected European
economies such as France, Germany, Italy, Spain, and the UK. These selected economies are among the
top ten most affected countries in the world2. Therefore, the objective is to assist the policymakers in
taming the pandemic’s response in the selected European economies where a pandemic has already
played havoc. We are specifically focusing on the European economies for various reasons; 1) these are
the worlds’ most influential economies; therefore, it is an important source of transferring the spillover
effects to the other economies worldwide. 2) These economies are currently passing through two
serious shocks, a pandemic spread and the downturn in macroeconomic variables, most importantly the
unemployment rate. 3) Most of the European economies are under severe lockdown even though the
European policy practitioners have much more information to cope with the consequences of the
outbreak than the other countries. However, unfortunately, these economies are registering the largest
number of confirmed cases and deaths than any other country in the world. Therefore, by exploring the
impact of the on-going pandemic on unemployment in these economies, we can provide policy insights
for the rest of the developed and developing countries.

In the existing literature, we have found many studies on the impact of the COVID-19 on oil prices
(Narayan, 2020) and stock market volatility (Baker et al., 2020). The study is unique because it will
explore the impact of the COVID-19 pandemic on labor markets of developed economies. The study will
contribute to the existing literature on the economic impacts of the pandemic in various ways. It is
taking into account the case of the most influential and developed economies of the world. It has also
shed light on an important policy debate that is how COVID-19 impacts the labor markets, particularly in
these economies and generally all over the world. The proper functioning of labor markets has become
part and parcel of the recent era’s economic growth process. The growth process is halted without the
proper functioning of the labor markets in developed and developing countries.

Furthermore, the recent pandemic has severely affected the labor markets and increased the
unemployment rates drastically. The study will also provide policy insight for the selected European
economies, which could be equally generalized for the other developed countries in the region. Also, the
study’s findings are used to draw inferences for capturing the impacts of future pandemics on labor
markets functioning in developed economies.

The global outbreak of the COVID-19 pandemic has spread worldwide, affecting almost all countries and
territories. The outbreak was first identified in December 2019 in Wuhan, China. The countries around
the world cautioned the public to take responsive care. The public care strategies have included
handwashing, wearing face masks, physical distancing, and avoiding mass gathering and assemblies.
Lockdown and staying home strategies have been put in place as the needed action to flatten the curve
and control the transmission of the disease (Sintema, 2020).

The COVID-19 outbreak is a sharp reminder that pandemics, like other rarely occurring catastrophes,
have happened in the past and will continue to happen in the future. Even if we cannot prevent
dangerous viruses from emerging, we should prepare to dampen their effects on society. The current
outbreak has had severe economic consequences across the globe, and it does not look like any country
will be unaffected. This not only has consequences for the economy; all of society is affected, which has
led to dramatic changes in how businesses act and consumers behave. This special issue is a global effort
to address some of the pandemic-related issues affecting society. In total, there are 13 papers that cover
different industry sectors (e.g., tourism, retail, higher education), changes in consumer be

The first country to identify the novel virus as the cause of the pandemic was China. The authorities
responded with unprecedented restrictions on movement. The response included stopping public
transport before Chinese New Year, an annual event that sees workers’ mass emigration to their
hometowns, and a lockdown of whole cities and regions (1). Two new hospitals specifically designed for
COVID-19 patients were rapidly built in Wuhan. Such measures help slow the transmission of COVID-19
in China. As of May 2, there are 83,959 confirmed cases and 4,637 deaths from the virus in China (4).
The Philippines was also affected early by the current crisis. The first case was suspected on January 22,
and the country reported the first death from COVID-19 outside of mainland China (5). Similar to China,
the Philippines implemented lockdowns in Manila. Other measures included the closure of schools and
allowing arrests for non-compliance with measures (6). At the beginning of May, the Philippines
recorded 8,772 cases and 579 deaths (4).

The World Health Organization (WHO) declared coronavirus disease 2019 (COVID-19) to be a Public
Health Emergency of International Concern on January 30 (1) and a pandemic on March 11, 2020 (2).
COVID-19 predominantly presents with respiratory symptoms (cough, sneezing, and sore throat), along
with fever, fatigue and myalgia. It is thought to spread through droplets, contaminated surfaces, and
asymptomatic individuals (3). By the end of April, over 3 million people have been infected globally (4).

The first country to identify the novel virus as the cause of the pandemic was China. The authorities
responded with unprecedented restrictions on movement. The response included stopping public
transport before Chinese New Year, an annual event that sees workers’ mass emigration to their
hometowns, and a lockdown of whole cities and regions (1). Two new hospitals specifically designed for
COVID-19 patients were rapidly built in Wuhan. Such measures help slow the transmission of COVID-19
in China. As of May 2, there are 83,959 confirmed cases and 4,637 deaths from the virus in China (4).
The Philippines was also affected early by the current crisis. The first case was suspected on January 22,
and the country reported the first death from COVID-19 outside of mainland China (5). Similar to China,
the Philippines implemented lockdowns in Manila. Other measures included the closure of schools and
allowing arrests for non-compliance with measures (6). At the beginning of May, the Philippines
recorded 8,772 cases and 579 deaths (4).

China was one of the more severely affected countries in Asia in the early stage of pandemic (7) while
the Philippines is still experiencing an upward trend in the COVID-19 cases (6). The gross national
income (GNI) per capita of the Philippines and China are USD 3,830 and 9,460, respectively, were
classified with lower (LMIC) and upper-middle-income countries (UMIC) by the Worldbank (8). During
the COVID-19 pandemic, five high-income countries (HIC), including the United States, Italy, the United
Kingdom, Spain, and France, account for 70% of global deaths (9). The HIC faced the following
upchallenges: (1) the lack of personal protection equipment (PPE) for healthcare workers; (2) the delay
in response strategy; (3) an overstretched healthcare system with the shortage of hospital beds, and (4)
a large number of death cases from nursing homes (10). The COVID-19 crisis threatens to hit lower and
middle-income countries due to lockdown excessively and economic recession (11). A systematic review
on mental health in LMIC in Asia and Africa found that LMIC: (1) do not have enough mental health
professionals; (2) the negative economic impact led to an exacerbation of mental issues; (3) there was a
scarcity of COVID-19 related mental health research in Asian LMIC (12). This systematic review could not
compare participants from different middle-income countries because each study used different
questionnaires. During the previous Severe Acute Respiratory Syndrome (SARS) epidemic, the
promotion of protective personal health practices to reduce transmission of the SARS virus was found to
reduce the anxiety levels in the community (13).

The 2019 coronavirus disease (COVID-19) pandemic poses a threat to societies’ mental health. This
study examined the prevalence of psychiatric symptoms and identified the factors contributing to
psychological impact in the Philippines.
The 2019 coronavirus disease (COVID-19) was declared a pandemic by the World Health Organization on
March 11, 2020. It may follow the influenza pandemic of 1918 in magnitude which affected about one-
third of the world population and killed 50 million. To date, severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2), the virus that causes COVID-19 disease, has affected 213 countries and
territories around the world with 14 million cases and half a million deaths (WHO, 2020). Control efforts
worldwide led to travel bans and restrictions. In the Philippines, President Rodrigo Duterte placed the
entire Luzon archipelago on enhanced community quarantine on March 16, 2020 (Official Gazette,
2020). Curfew, check-points and travel restrictions were implemented (PCOO, 2020; Yap and Jiao, 2020).
Business and school activities were suspended indefinitely. People were forced to stay in their hodeath

Previous disease outbreaks caused generalized fear to the public and induced fear-related behaviors and
anxiety (Shultz et al., 2016; Person et al., 2004). With the novel coronavirus plaguing the world, there
are so many uncertainties with the disease with a possibility of a fatal outcome. There were reported

manifestations of distress, anxiety, depression, and insomnia in general populations (Wang et al., 2020a;
Wang et al., 2020b;

Infection or death of family and friends could worsen the overall mental health well-being of an
individual (Ahmed et al., 2020). Patients with confirmed or suspected COVID-19 may experience fear,
while those in quarantine might experience boredom, loneliness, and anger (Xiang et al., 2020).
Overwhelming deep emotional traumas and socio-economic stressors brought about by the pandemic
and the lockdowns have even led the more vulnerable people to commit suicide (Mamun & Griffiths,
2020; Mamun & Ullah, 2020; Miller, 2020; Rajkumar, 2020a).

It is imperative to determine the prevalence of adverse mental health issues in a society during this
pandemic and mitigate its psychological risks and consequences. To date, there are no studies that
examine the psychological impact of the COVID-19 pandemic to the general population in the
Philippines. Therefore, this study aims to establish the prevalence of psychiatric symptoms and identify
risk and protective factors contributing to psychological stress among social media users in the
Philippines during the COVID-19 pandemic.

COVID-19 has brought about a marked slowdown in global economic development. Companies have
been forced to adopt new managerial guidelines to adapt to the difficult conditions and to survive in this
“new normal”. The recent and still scarce literature in this field seeks to provide suitable solutions to
prevent irreparable disruption and help strengthen business, but does not apply advanced statistical
methods to that end. The aim of this paper is to identify the current research lines developed around
COVID-19 and their impact on the business environment, applying text mining methodology. The
analysis, which uses statistical software R, focuses on systematic review of studies published in
prestigious journals of business and marketing areas. In light of the results obtained, three different
areas of intervention were identified. The common thread that runs through all of them is the need to
introduce new forms of action to improve citizens’ quality of life.
The COVID-19 pandemic and associated government lockdown restrictions have fueled a high demand
for survey data on how individuals and establishments are coping with the restrictions. However, the
pandemic has also dramatically affected surveys themselves, forcing research institutes to adapt their
fieldwork operations to the uncertain and evolving conditions. This paper documents the specific
impacts of the pandemic on several ongoing surveys at the Institute for Employment Research in
Germany, and describes how these impacts have been addressed. In addition, this paper summarizes
efforts to rapidly develop new Covid-19 surveys to help meet the increasing demand for timely data
about the effects of the Corona-Crisis on the labor market.

However, given the simultaneous closing of schools and day-care facilities, the caregiving responsibilities
of parents have increased. Because of this, self-employed parents may be affected more by the
shutdowns than self-employed nonparents. In addition, due to gender norms within the home (Burda,
Hamermesh, and Wiel 2008; Sent and van Staveren 2019; Sevilla and Smith 2020) and gender
differences in risk preferences (Charness and Gneezy 2012; Sent and van Staveren 2019), female self-
employed parents may be affected even more than male self-employed parents. Because women are
more likely than men to enter self-employment to gain flexibility over the timing of their work to better
balance work and family demands (Budig 2006; Gimenez-Nadal, Molina, and Ortega 2012), we may also
see differential impacts by couple status and parental status. Given that the shutdowns are affecting
“essential” and “nonessential” industries differently, the employment status and industry of a spouse
may also impact a self-employed worker’s employment and hours as families juggle household and
child-care responsibilities (Alon et al. 2020). If a mother’s partner loses his job, the mother may work
extra hours to compensate for the lost income while the father cares for the children. It has also been
shown that crime rates in the Philippines is related to unemployment.

The COVID-19 pandemic is a major health issue, which leads to psychological and behavioural changes.
In particular, among various negative feelings, fear seems to be one of the main emotional reactions
that can be as contagious as the virus itself. The actual pandemic is likely to function as an important
stressor, especially in terms of chronic anxiety and lack of control over the succession of unforeseeable
environmental events. In this direction, the psychological impact of previous quarantine measures
showed important negative psychological effects, including post-traumatic stress symptoms (PTTS) with
long-lasting effects. The presence of psychological discomfort and disturbances due to negative
contextual factors can be studied using the nocebo phenomenon as a possible theoretical explanatory
framework. Although in the absence of studies linking nocebo to Covid-19 and data-driven evidence, the
context of the actual pandemic may be seen as a fertile ground for amplified discomfort and anxiety.
The media provide dramatic and negative descriptions and often present conflicting sources of
information, which can lead to physical and mental health problems, diminishing response to treatment.
This can be worse when supported by conspiracy theories or misinformation. The aim of this perspective
review is to propose a new theoretical framework for the COVID-19 pandemic, which should be
supported by future empirical studies. In particular, the negative contextual factors, which can
predispose individuals to psychological distress and the onset of the nocebo phenomena will be
presented here, in order to suggest possible guidelines to mitigate the devastating effects of COVID-19.

The COVID-19 pandemic includes a perfect storm in which powerful nocebo effects may be flourishing.
The nocebo effect can be mediated by situational-contextual factors (such as verbal information and
suggestions, healthcare beliefs and health professional interactions, exposure to negative media
campaigns, or previous personal experience) and by individual factors.

The COVID-19 pandemic has led to a dramatic loss of human life worldwide and presents an
unprecedented challenge to public health, food systems and the world of work. The economic and social
disruption caused by the pandemic is devastating: tens of millions of people are at risk of falling into
extreme poverty, while the number of undernourished people, currently estimated at nearly 690
million, could increase by up to 132 million by the end of the year.- Kimberly
Chapter 3

METHODOLOGY

This chapter presents and explain in detail the procedure to be followed in conducting the study. This
included discussions on the design of the research, description of the locale of the study, description of
respondents and its sampling design and procedure, description of a research instrument to be used,
steps in collecting data, and appropriate statistics to use to analyze and interpret the data.

Research Design

This is a quantitative study which employs the use of descriptive – correlational design. Furthermore,
the research design was quantitative considering that it deals with measuring and analysis variables in
order to get results. It involved the utilization and analyzing of survey questionnaire using specific
statistical techniques to answer an inquiry. It also explained the issue or phenomenon through gathering
data in numerical form and analyzing with the aid of mathematical methods in particular statistics
(Apuke, 2017). This is a descriptive study since the researcher intended to describe the characteristics
of a population or phenomenon being studied. Notably, the researcher aimed to address the “what”
question as to identify the level of source of stress and level of proactive coping styles (Shields, et al.
2013). On the other hand, it is at the same time a correlational study as the researcher seek to
determine whether there is an existing relationship between the sources of stress and proactive coping
styles of students in General Santos City (Fraenkel, et al. 2015

Data and Methodology

This study is quantitativet mostly drawn from survey-based assessments of the economic impact of
Covid-19 pandemic published by national and international agencies. The primary data for this report
comes from Morang-Sunsari industrial corridor and the twin-cities of Gorahi and Tulsipur in Dang
District. The two geographical clusters combine the manufacturing-heavy economy of the industrial
corridor in the East with agriculture-heavy economy of the Dang Valley in the West. In that respect, the
findings of this assessment may be extrapolated nationally, with some qualifications, for indicative
purposes.

To generate primary data, a field survey was conducted from October 15-30 in the Morang-Sunsari
industrial corridor and Dang Valley. The sample included 60 firms,

Construction, wholesale and retail, restaurants and hotels, services, and “others”). Surveys were
conducted in-person or by telephone, based on the respondent’s choice of methods.
A key challenge in measuring the impact of the Covid-19 pandemic on employment in Nepal is data. The
Central Bureau of Statistics produces occasional National Labour Force Survey, the last one was in 2018.
Without quarterly or six-monthly surveys, it is difficult to track data on employment. As such, data on
employment in Nepal is notoriously difficult to track because 80.8 percent of all employment generated
in Nepal is informal. Since pre-pandemic baseline numbers are not available, it has been difficult to
precisely compute the pandemic’s impact on the rate of employment nationally and, more so, locality-
wise. Despite this challenge, the survey has managed capture the salient trends in the state of the local
economy and state of employment in the two locations.

The COVID-19 pandemic is an opportunity for researchers to define and describe how precarious work
creates physical, relational, behavioral, psychological, economic, and emotional vulnerabilities that
worsen outcomes from crises like the COVID-19 pandemic (e.g., unemployment, psychological distress).
For example, longitudinal studies can examine how precarious work creates vulnerabilities in different
domains, which in turn predict outcomes of the COVID-19 pandemic, including unemployment and
mental health. This may include larger scale cohort studies that examine how the COVID-19 crisis has
created a generation of precarity among people undergoing the school-to-work transition. Researchers
can also study how governmental and nonprofit interventions reduce vulnerability and buffer the
relations between precarious work and various outcomes. For example, direct cash assistance is
becoming increasingly popular as an efficient way to help people in poverty (Evans & Popova, 2014

Research Locale