https://www.reuters.com/article/usa-economy-reopen/us-economic-rebound-may-be-a-slow-train-for-the-unemployed-idUSL1N2GD2MO
The Federal Reserve has recently updated their estimates for what they think the economic recovery will look like for the United States. The news is positive and shows that the U.S. output will not be low as we initially thought. The problem with this is that some of the main job creators in the economy are going to face the biggest struggles.
Small businesses do not have the resources of big corporate offices and are unable to withstand the same economic environment that bigger businesses can. This means that many of these businesses may end up going under in the next few months. And for the ones that don't, they will struggle to get their business back to where it once was. Small businesses make up a good portion of the job market and with their slow recovery, there will also be a slow recovery on the unemployment rate.
The U.S. is also going to face unemployment pressures because certain industries are becoming obsolete and there is going to be a lack of jobs based on that. With more people working from home than ever, offices are not always necessary for businesses and this can force certain employees to no longer be necessary, such as janitors or security.
It seems as if the economic struggles of the U.S. are going to impact the middle to lower class more than the upper class citizens.
3 comments:
interesting point the article made and i definitely think that a lot of this job lose will be permanent because it is an possibility that covid is permanent and face to face worker that can be replaced like Secretaries will be replaced. one thing is for sure covid will have major lasting effect on the job market for the near future
Unfortunately, it seems that lower income people will be hit harder by the pandemic. I feel that the change to having higher-paid positions performed from home will hurt those working in more entry-level, non-essential positions. Even beyond employees like janitors, who will suffer because of a diminished use of physical office space, the amount of entry level positions might also decrease, as firms will have to downsize and eliminate the least useful positions. It will be interesting to see how this affects employment for graduating college students who often take entry level positions in their first couple years out of school.
I think that the employers have seen that their employees can be productive if they work from their home and that they do not need an office space to operate due to the pandemic. Hence many people are moving to 100% remote work which obviously leaves many people jobless especially the Lower and middle class workers. This is why the government should focus on creating new jobs for these unemployed workers instead of spending money to get them their old jobs back. Covid has completely changed the job market outlook and the jobseekers have to change with it.
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