Whether you think the global pandemic is “just the flu” or you realize it’s the real deal, one thing is difficult to debate – many Americans are already feeling the economic pain being caused by the outbreak and the measures taken to stop it.
Unemployment claims skyrocketed this week as businesses laid-off employees in an attempt to weather the storm. More than 281,000 people filed for unemployment and those numbers would have been even higher if the influx of claims had not crashed the systems in several states.
In a news release, the Department of Labor said:
During the week ending March 14, the increase in initial claims are clearly attributable to impacts from the COVID-19 virus. A number of states specifically cited COVID-19 related layoffs, while many states reported increased layoffs in service-related industries broadly and in the accommodation and food services industries specifically, as well as in the transportation and warehousing industry, whether COVID-19 was identified directly or not. (source)
At the same time as employees are filing claims, businesses are trying to figure out how to stay afloat. Restaurants are switching to carry-out only. Bars are closed. Retail sales are down unless the business happens to be selling vital supplies like medications, food, and the new gold standard, toilet paper and Lysol wipes.
The Covid-19 pandemic is causing an economic crisis that will have both short-term and long-term effects. This will challenge your adaptability skills, but I want to stress something: life will be different, but that doesn’t mean life is over. Here’s what you need to know.
Recession or Depression?
This is just the beginning of the economic crisis bearing down on us. As social distancing measures become more widespread, less and less money will be in play – both earned and spent.
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