Photo: Al Drago / Bloomberg
Although the United States began lifting business restrictions, another 2.4 million Americans applied for unemployment benefits last week, bringing the total number of unemployed to 38.6 million in nine weeks.
And while the Department of Labor says many of those laid off expect their unemployment to be temporary, economists are growing fears that many jobs in the United States will be lost forever, according to the New York Times.
According to Nicholas Bloom, an economist at Stanford University, 42 percent of recent layoffs will lead to permanent job losses. According to him, although many of the companies intend to return some of the laid off workers at some point, it is historically clear that this is not going to happen.
The economy, which is beginning to recover, is likely to look quite different from what it was before the state of emergency. If the rules of social distancing become commonplace, leading to a drop in visitors to restaurants, theater shops and on airplanes, it will also affect the labor market, which will need fewer workers.
Big companies now expect more of their workers to continue working remotely and say they plan to reduce their footprint in real estate, which in turn will reduce the traffic of people who feed nearby restaurants, shops, beauty salons and other businesses. .
New jobs are being created, mostly with low pay – such as drivers, suppliers and cleaners. At the same time, other jobs will disappear.
Meanwhile, the latest data from the Ministry of Labor on last week’s unemployment claims reflect the continuing damage to the labor market.
“The bleeding continues,” said Thorsten Slock, chief economist at Deutsche Bank Securities, commenting on the growing job loss. He expects the official unemployment rate in the United States in May to reach 20%, compared to 14.7% reported by the Ministry of Labor in April.
A household survey by the Census Bureau, published on Wednesday (May 20th), suggests that the negative impact of the pandemic continues: 47% of adults say they or a member of their household have lost income from work since the middle of the year. March Nearly 40 percent expect the loss to continue over the next four weeks.
At the same time, in his testimony before the Senate on Tuesday, Federal Reserve Governor Jerome Powell stressed how devastating long-term unemployment can be for individual households and the economy as a whole.