Unemployment – Is There A Ray of Light Ahead?

Posted on: June 5th, 2020 by Editor

On June 5, 2020, the Bureau of Labor Statistics will release the latest Employment Situation Summary, which will include the most current unemployment rate. It will be a horrific number. Many analysts believe unemployment could be greater than 20%. These numbers represent families across the nation that are not sure when (or if) they will return to work. The emotional impact on these households is devastating.

Two things that will be interesting to learn are:

1. Which types of jobs have been most heavily impacted?
2. Will these be gender specific, simply due to the nature of the job?

According to Patricia Cohen and Tiffany Hsu with the New York Times:

“The last time the United States went through an economic downturn, some economists called it a “mancession,” as most of the job losses – in manufacturing, construction and finance – were shouldered by men.

This time around, the economic fallout from the pandemic is threatening to derail the careers of an entire generation of working women, in what some are calling a “shecession.”

The pandemic has dramatically changed the way Americans work and care for children, and women are carrying an unequal share of the burden. Women are more likely to have lost a job and are more likely to care for children at home. Even among married couples, women currently provide 70 percent of the childcare during work hours.

As childcare and babysitting options have evaporated, women say they have little choice but to give up jobs, or work part-time, to manage their responsibilities at home. And returning to the work force will be especially hard in the recession, as more out-of-work people compete for a reduced pool of jobs.

The impact on working mothers could last a lifetime, reducing their earning potential and robbing them of future work opportunities.”\

There are, however, some small rays of light shining through in the overall unemployment issue. Here are three:

1. The actual number of unemployed is less than many are reporting – It is true that over the last ten weeks, over 40.7 million people have applied for unemployment. It is also true, that many of those people have already returned to work or secured new employment.

2. Of those still unemployed, most are temporary layoffs – Over 90% of those unemployed believe their status is temporary. It will be interesting to see in this new report where things stand. A recent survey by the Federal Reserve Bank showed that employers believe over 75% of job losses are temporary. This means 3 out of 4 people should be returning to work as the economy continues to recover.

3. Those on unemployment are receiving assistance – In a recent study by Becker Freidman Institute for Economics, 68% of those who are eligible for unemployment insurance receive benefits that exceed lost earnings, with 20% receiving benefits at least twice as large as their lost earnings.

Bottom Line to Relocation

These past few months have been extremely hard-hit with the Covid-19 pandemic, which has levied a harsh blow. This resulted in the global stoppage of movement of talent, which created economic stress to our industry and unemployment across the country. But, the relocation community will continue to rally. In talking with many of my relocation peers, we agree that many corporations, along with their relocation partners, are quickly working to get employees safely moved around the globe, while creating diverse policies that set a strong foothold for future pandemics or adverse global situations.

Relocation continues in good times and bad – it’s just making sure you are as prepared as possible to ensure the safety, growth, and talent needs of your company and their employees are being supported appropriately.

 

Have questions or want to learn more about Lawrence Relocation Services, please contact Ginny Taylor, Director of Relocation Services, by email or by phone at 540.966.4550.