As the COVID-19 cases are on the rise in the U.S., the employment rates have dropped to a dangerously low level. A lot of people lost their jobs during the lockdown, but as businesses have slowly started opening up again, new job opportunities were expected. But the employment rate has dropped to half than what it was before the corona times.
A lot of businesses had to cut down their number of employees because they could not afford to keep so many people at the job. However, with the resurfacing of new cases, the condition would further worsen for the unemployed with no chance of returning to their offices.
The overall unemployment rate has dropped by some points because many people are not looking for jobs for their and their family’s safety. But many have accepted that they will never be returning to their offices because of the economic crises.
This will cause idleness among people and they will lose their capabilities, which will make it even harder for them to find work once all this is over.
Many businesses like restaurants, malls, and shop owners will suffer more losses as people would avoid stepping out of their houses.
Chair of the State Reserves says that this pandemic would pose more threat to the economy than anticipated as cases begin to rise again.
Up till now, the government aid had kept the damage under control but with the state running out of these funds, this is going to get difficult.
Many large companies are still planning to lay off their employees as the business market fails to attract consumers.
However, some businesses are still expanding during this pandemic such as online stores as people have shifted their preferences from in-store to online shopping. Pharmacies and health-related businesses are also thriving.
It would take time to rebuild the economy like it was in the corona free times.