The US economy is facing yet another setback in the wake of job losses. Similar patterns were seen when the pandemic first hit the country in March of 2020. The services industry was in particular impacted by the pandemic in the first wave as restaurants closed down.
Overall, the coronavirus onslaught has forced the consumers to change their spending habits This means that difficult times are ahead of people who are related to the service industry, especially the hotel businesses is deemed to be the worst hit.
People are so devastated economically that they cannot even buy food and pay for their rent. It was a difficult decision for the government to release a relief package as people were getting evicted.
Factories in the United States went on to reinstate their employees because they needed to increase their manufacturing capacity. This was done to make sure that essential products are available to the market and the jobs can be retained.
The unequal distribution of the unemployment pattern shows that restaurants and the entertainment industry were the worst hit. In comparison to the 2008 recession figures, the hospitality sector is devastated economically because of an increase in service industry practices.
Another aspect to look into this is that black people have lost more jobs than white people. The difference of unemployment between these two major communities currently stands at 4%. This margin means that white people are going to suffer more if this job loss is permanent.
The laid-off workers are going to become a strain on the economy as the small businesses are closing down. The new president will have to come up with a strong economic policy to take care of this situation.
The people who were already working on low wages are going to be the most affected ones if the situation persists.
This unequal job loss will also affect the male-to-female ratio in the industry which is already low by the current employment standards. It is an alarming situation as America has come a long way in this regard.
The government has recently approved a $900 million relief package for the unemployed people. $600 is expected to be paid as a stimulus check to the people who will meet the merit.