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BUSINESS Tuesday 16 June 2020
Can job market sustain its gains? Uncertainties cloud future

AP Economics Writers cans will regain their pre-
WASHINGTON (AP) — Lay- pandemic enthusiasm for
offs are slowing, unemploy- eating out. Local govern-
ment is declining and hiring ments, newly vigilant about
is gradually rising, suggest- a potential resurgence of
ing that a steady rebound the virus, may continue to
may be afoot in the U.S. job require restaurants to re-
market. strict seating capacity.
Or is it? "A lot of those restaurants
So many uncertainties are may not have been able to
overhanging the economy carry themselves through
that no one knows whether the shutdown … or they
hiring will expand steadily in can't make a profit on a ta-
the months ahead or mere- ble setup that is half of what
ly plateau as employers re- is used to be,'' said Barbara
call only enough of their Denham, senior economist
laid-off staffers to partially at the commercial real es-
reopen for business. tate research firm Moody's
The most dangerous risk Analytics REIS. q
is that the coronavirus will
roar back with renewed
intensity, forcing millions
of businesses to shut down In a April 30, 2020 file photo, a man walks by a closed store during the COVID-19 in Chicago.
again and resume deep Associated Press
job cuts.
The outlook is so opaque mists have warned that last year, which was itself as consumer spending re-
that at a news conference a second viral outbreak a record. This trend would mains subdued, so will hir-
last week, Federal Reserve would lead many more mean that hundreds of ing. The outlook is particu-
Chairman Jerome Powell consumers to stay home, thousands of jobs wouldn't larly dim for businesses that
used the words "uncertain" thereby dealing another return. Some companies depend on mass gather-
or "uncertainty" seven times blow to restaurants, bars in the travel and energy ings — from concert ven-
to describe the outlook for and retailers,and likely industries will likely go out ues and professional sports
economy. causing more layoffs. of business in the coming leagues to airlines and the
"The extent of the downturn WILL MANY COMPANIES weeks or months. film and television industry.
and the pace of recovery," GO OUT OF BUSINESS? So far, the pace of business Professional sports, accord-
Powell said, "remain ex- Many people who have bankruptcies has yet to ing to analytics firm EMSI,
traordinarily uncertain and lost jobs say they regard surge. Amy Quackenboss, creates up to 1.3 million
will depend in large part on their layoffs as temporary executive director of the jobs, some of which are
our success in containing and that as the economy American Bankruptcy In- only part time or seasonal.
the virus." rebounds, they expect to stitute, credits the govern- Still, about 3,000 workers are
While it's hard to say what return to their old employ- ment's relief efforts, notably needed to make U.S. Bank
the future holds for Amer- ers. This has already hap- its small business lending Stadium in Minneapolis
ica's roughly 30 million un- pened to some employees program, with limiting the hum for a Vikings game, for
employed, here are some of restaurants, retailers and number of household and example. It's unclear when
key factors that will deter- construction companies. business bankruptcies. or whether all those jobs will
mine how that future un- If that trend were to con- "As this relief runs its course, return. College sports will
folds. tinue, it could deliver a however," she added, be deeply affected, too.
WILL THERE BE ANOTHER relatively fast recovery and "mounting financial chal- To take one example, Iowa
WAVE OF THE VIRUS? a steady decline in unem- lenges may result in more State University is consider-
On Thursday, stock prices ployment. households and compa- ing selling only half the tick-
plunged more than 5%, Yet as the recession that nies seeking the shelter of ets needed to fill its football
driven largely by reports began in February drags bankruptcy." stadium this fall.
that the number of corona- on, more and more of the HOW FAST WILL CONSUM- HOW MANY RESTAURANT
virus cases is rising again in unemployed will face a ERS RESTART SPENDING? JOBS WILL RETURN?
much of the United States tougher problem: They The lifting of government- As much as it has any in-
as more reopened busi- may have no business to ordered shutdowns of non- dustry, the pandemic has
nesses draw customers go back to. essential businesses will devastated restaurants
without the full use of pro- Retailers, for example, are increasingly allow more and left their future deeply
tective masks and social closing stores permanently Americans to shop and uncertain. Forced to close
distancing. and declaring bankrupt- spend. But consumers won't their dining rooms to com-
An Associated Press analy- cy. Discount goods retailer likely return to their pre-pan- ply with government lock-
sis this week found that in Tuesday Morning late last demic habits of eating out, downs, U.S. restaurants and
21 states, the rolling seven- month became the fifth traveling by plane, going to bars slashed 5.4 million jobs
day average of new cases large retail chain to go movies or visiting yoga stu- in April, a 45% plunge. Bare-
per capita was higher than bankrupt amid the pan- dios and barbershops until ly 1.4 million of those lost
the average seven days demic, after J.C. Penney, J. they're confident that they jobs returned in May.
earlier. In some states, re- Crew, Neiman Marcus and won't be infected. And Restaurants are increasing-
ported cases and hospital- discounter Stage Stores. that would likely require sig- ly, if only partially, reopen-
izations surged after state Coresight Research says nificantly expanded testing ing, in many cases with their
officials lifted their business it expects 20,000 to 25,000 capability or the availabil- indoor dining strictly limited
lockdowns. stores to permanently close ity of a vaccine. to fewer customers. It's un-
Powell and other econo- this year, up from 9,800 In the meantime, as long clear whether most Ameri-