Millions of lost jobs are at risk of becoming permanent

The United States does not care much for its citizens; it has literally abandoned them, admitting that many jobs will not recover and that people will have to get used to living in the new environment. I wonder, then, how do people earn if there is nowhere else to work?

Millions of lost jobs are at risk of becoming permanent

“My work has stopped, but my bills haven’t”, –  says one of those people who lost their jobs.

Of course, the government and central banks are promising to boost the economy and spark a revival in employment, but how true are these promises and how trustworthy are they? The laid-off or laid-off workers will then return to their employers, the government says, but immediately the same government says there is likely to be no going back to the old way of life and work and people should look for other ways to earn money. That’s interesting.

 

The pandemic has caused a “reallocation shock”, which has caused lasting damage to companies and even entire sectors. The unemployment rate remains high. It makes workers either retrain or relocate, but both are hard, and the Government is not trying to help people much. On the contrary, let us remember the situation with visa restrictions, when a lot of entrepreneurs and just workers had to leave the country where they had a business, a job, a family and just their lives because the States refused to renew their documents. They literally threw thousands and hundreds of thousands at the mercy of fate. And that’s in the midst of a mass crisis!

 

Unfortunately, new research by Bloomberg Economics believes that 30% of job losses in the U.S. between February and May are the result of redistribution shock and are unlikely to recover.

Other studies contain similar warnings. A study published in May by the Becker Friedman Institute at the University of Chicago showed that 42% of recent layoffs in the US will be permanent.

Different causes of job losses require different and sometimes conflicting policy responses and it would be good if the US government could finally learn to respond to samples in a timely and appropriate manner.

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