Unlike the French, Americans have few social protection systems.
U.S. researchers have determined that more than a third of the jobs lost as a result of the economic downturn caused by the coronavirus pandemic could be permanently destroyed.
RECORD HIGH UNEMPLOYMENT
The U.S. Bureau of Labor Statistics recently released U.S. unemployment figures, with a rate of 14.7 percent for April, the highest level recorded by the country since the 1930s. In research published in the journal Social Science Research Network, a team of researchers at the University of Chicago estimated that for every 10 layoffs during the coronavirus pandemic, only three new jobs were created.
While the profound reorganization generated by this health and economic crisis is benefiting certain sectors, most of them are finding themselves seriously and lastingly impacted.
“We estimate that 42% of recent layoffs due to the pandemic will result in permanent job loss,” notes Steven J. Davis, lead author of the study. “If the economic downturn lasts for many months, or severe pandemics become a recurring phenomenon, there will be profound and long-term consequences for the reallocation of jobs, workers, and capital across sectors. “
To assess job reallocation within U.S. firms, researchers developed a new forward-looking measure based primarily on the large data set collected in the Survey of Business Uncertainty.
3.8% NEW HIRES FOR 12.8% LAYOFFS
The Survey of Business Uncertainty, a collaboration between the Federal Reserve Bank of Atlanta, the University of Chicago School of Business, and Stanford University, is a monthly panel survey that calculates a firm’s expected growth rate in the coming year and its “degree of uncertainty” about those expectations.
In analyzing the data, the researchers found that the economic impact of the pandemic resulted in short-term layoffs equivalent to 12.8 percent of employment as of March 1, while new hires peaked at 3.8 percent, the equivalent of three new hires for every 10 jobs lost.
The study cites numerous sources of reports of large-scale hirings by some retailers, supermarkets, and food delivery companies, and also points to the fact that some companies are being creative in managing their labor needs.
Source : Futurity