California, December 28, 2020, ZEXPRWIRE, The COVID-19 pandemic in 2020 has caused the unemployment rate to a number that has never been experienced before and the labor market has taken a tremendous hit as the Coronavirus causes businesses to shut their doors and jobs to be lost. On December 23, 2020, congress passed a $900 billion economic stimulus bill, but it is uncertain if pumping money into a limping economy will save jobs. Many businesses – larges and small companies alike – are bleeding red on their balance sheet and may not recover with a second PPP from the Small Business Administration, according to a business attorney at the Nakase Wade Law, California Business Lawyer & Corporate Lawyer where the firm’s respected commercial lawyers are in high demand by California businesses. California businesses trust the Nakase Wade top class action lawyers to defend against employees’ class action during the pandemic.
Since the beginning of the national shutdown, over 20 million jobs have been lost and the unemployment rate reached a record-high of 15%.
Just before the virus struck the world, the United States’ labor market was thriving, and the unemployment rate was at a mere 3.5%. Not only has that number gone up by nearly 12%, but it doesn’t seem like it is going to get better anytime soon.
Trump prided himself on the economy and the low unemployment rate before COVID, but that number has since been diminished and the economy is plummeting. He even stated that this year, 2020, would be the best year for the economy, but he didn’t know what was going to hit him next.
Though the economy may have been thriving at the start of this year, economists now fear that the damage that has been done to the economy will take years to recoup.
Many people believe that the jobs that have been lost are temporary and not permanent, many of those who have been let go of their position have no idea when and if they will return to work.
On top of that, many businesses, even big businesses, are filing for bankruptcy or having to close their doors completely. Because of this, it is apparent that this shutdown can affect both big and small businesses and doesn’t seem to have an end in sight.
Along with the economy being down and businesses shutting their doors comes the major issue of the high unemployment rate. With this comes millions of people filing for unemployment benefits.
While job loss has affected people of every color, race, and gender, it has had a significantly large impact on people of color, teenagers, and those with lower levels of education.
Because the job loss has had the highest impact on those who are typically labeled as ‘at-risk’, economists fear it will never go back to normal for them. After years and years of work in getting ‘at-risk’ citizens to be represented in the workforce, this has all gone downhill.
In April of this year, the job loss was the highest that it has been since the 1940s following the Great Depression. This wiped out all of the gains and growth the United States had made in the job workforce, and now it may take years to get back to where we started, and the numbers of COVID cases don’t seem to be diminishing anytime soon.