The Impact of Global Crises on the Labor Market: A Case Study on the Oil and Gas Sectors
Mahmoud Ali Suleiman Al-Jahani presented a study on the impact of global crises on the labor market, with a focus on the oil and gas sectors, at the Gate Academy celebration:
Introduction
Throughout history, the world has witnessed numerous significant events related to state building, management, and how nations confront serious issues such as conflicts, tensions, disruptions, and wars (local, regional, and global), as well as global pandemics that threaten humanity and civilization as a whole.
With the increasing threat of the spread of the coronavirus pandemic around the world, there is a need to take precautionary measures to prevent the spread of the pandemic while maintaining business operations to minimize economic damage.
The shock of the novel coronavirus (COVID-19) has affected companies and labor forces worldwide. Estimates from the International Labour Organization indicate that global labor income decreased by about 11% or $3.5 trillion in the first nine months of 2020.
The energy markets were severely disrupted during the pandemic crisis, leading to instability in energy consumption patterns in major markets of advanced countries. This also exacerbated price volatility and fragility, and recovery was non-linear, primarily depending on the growth of energy consumption demand.
The pandemic crisis has added to the challenges facing large and diversified companies in the oil and gas sectors, as well as the refining sector and companies involved in exploration and extraction, or those providing production services from fields, and intermediary companies focused on transportation and delivery between fields and refining and distribution outlets. The researcher seeks to understand the impact of global crises, especially the COVID-19 pandemic, on the labor market in the oil and gas sectors.
Research Problem
Economies rise to higher levels after crises than they were before the crises. New economic horizons emerge, and there is convergence of different views on economic and social policies. Local wealth and potential human resources emerge to challenge and overcome crises. The economic sector, especially companies, faces several challenges in recent times due to global events in light of the spread of the coronavirus.
The main question of the study is: "What is the impact of global crises on the labor market, with a focus on the oil and gas sectors?"
From this main question, several sub-questions arise, including:
What is the theory of emergency circumstances?
What are the economic effects of implementing the theory of emergency circumstances?
What is meant by a global pandemic?
What is meant by a crisis?
What are the stages of crisis management?
What are the steps for business recovery following crises?
Significance of the Study
Scientific Significance: This study can be considered a source for researchers and scholars who want to learn more about the impact of emergency circumstances and challenges on the labor market, especially in the oil and gas sectors following the COVID-19 pandemic. This study could serve as a starting point for researchers and enthusiasts to conduct further research in this field.
Practical Significance: The study may yield results that contribute to providing recommendations and suggestions for business owners, institutions, and their employees on how to overcome the effects of the COVID-19 pandemic.