Economic Conditions and Workplace Trends

These can have significant effects on income levels at both a temporary and permanent scale.

The COVID pandemic illustrates both of these.

The economic downturn caused by decreased consumer spending caused many companies to freeze salaries, reduce bonuses, or lay off employees, impacting individuals’ total income.

The pandemic also led to changes in workplace trends, such as remote work and the gig economy, which affect income by altering the very nature of employment.

Source: Achurch Consulting

Another emerging example of a workplace trend is Artificial Intelligence (AI). Recent studies project that it will displace 85 million jobs that involve repetitive tasks, data analysis, or routine decision-making, but also has the potential to create 97 million new jobs in the tech industry.