COVID-19’s effect on US Jobs

People+wait+in+line+to+be+screened+for+the+coronavirus+at+the+Brooklyn+Hospital+Center%2C+New+York%2C+March+19%2C+2020. (Mark Lennihan)

People wait in line to be screened for the coronavirus at the Brooklyn Hospital Center, New York, March 19, 2020.

The Coronavirus has affected many lives with quarantine procedures taking place, while some are affected by actually getting the virus. While this “outbreak” is going although the world, in the US jobs are being affected in all sorts of ways. In March of 2020, the Bureau of Labor Statistics made a statement saying, “the US lost 701,000 nonfarm payroll jobs last month.” While many people have either been laid off, have to work from home, have many safety protocols installed, it is believed that the younger age of the work force in the US might be the most effected. While “young people” make up a decent amount of people working in service-based industries, they tend to be the low-income workers that are trying to increase financial security.
Chart showing the age different and jobs affected by the COVID-19 outbreak.

While people are affected by the job loss, many states will be hit hard. States that count on tourism will be the ones that are hit harder than others. IHS Markit said, “States such as Nevada and Florida that depend heavily on tourism will be hit hardest by coronavirus-related job losses this year while rural states will be most insulated.” The HIS also projected the percentage drop in employment for each state in 2020 is most likely to be higher in more populous states. This makes sense because the states that have more people will have a higher risk of having the COVID-19 virus spread, and therefore having to place more safety and more quarantine procedures. With more quarantine procedures, more jobs will be lost due to people not aloud to go out and business having to lay people off due to slow business.

However, the US congress and the Federal Reserve will help stabilize the U.S. economy. The Congress just made a $2.2 trillion relief package and they are wanting to quickly put cash in people’s hands and companies to avoid job cuts, laid-off employees, and high unemployment. The federal relief package includes, an extra $600 a week in unemployment benefits plus the usual state benefits.

Around one in four US workers (nearly 40 million out of the 160 million) have work in industries that are most likely to undergo an immediate impact from the COVID-19 “outbreak.” Since 2018 the immediate-risk industries employed a total of 37.2 million people, around 23% of the total U.S. workforce. These jobs include, retail, passenger transportation, arts and entertainment, accommodation, restaurants, bars, etc.

While many people are going to be hit hard by this decrease in jobs in the US, hopefully the government’s plans to help with bill paying and necessities will work. As far as quarantine procedures and law about saying indoors, hopefully it won’t be around for much longer.