The US economy is collapsing due to coronavirus. The problem is deeper than it appears. The effect of coronavirus on small scale companies is very harsh. Small scale companies like food trucks are getting affected a lot due to the work from the home mandate. Not only just the food trucks, but the total food business is also getting affected. Even after the coronavirus prevention, the economy will take years to recover.
Along with food trucks, amusement parks, hotels, sporting events, and airlines are also affected due to coronavirus. Several other job areas like baby sitters, dry cleaners, dog walkers, etc are also some of the people who are affected by corona. These are the services that are no longer needed by the people.
According to Moody’s analytics, around 80 million jobs in the USA are under medium or high risk. There are a total of 153 million jobs in the USA, currently, which is more than 80 million which is half of it. This doesn’t mean all the jobs will be jobs, but around 10 million job holders will be affected.
Moody’s Analytics has said that out of the 80 million jobs, 27 million jobs are at high risk. These 27 million, mostly belong to travel, transport, leisure, and hospitality. Of these, 5 million people which is 20% of the total will be the ones that are affected the most. Employees belonging to areas like retail, manufacturing, construction. education is at moderate risk due to coronavirus.
During the great recession, the USA lost 800,000 jobs in 2009. Currently, the impact due to corona is bigger than that.
Finding a new job during this time is very difficult. According to a weekly survey of Moody’s analytics across 350 businesses, the hiring rate during December 2019 is 41%. This number has reduced greatly to 12% currently. Health care companies are looking for help but the other companies are opting for hiring freeze.
The bigger companies are not looking to fire any of its employees easily than it used to do before. They are clear of the current situation and do not want to make changes. But the situation is out of their control for small businesses. Even if the corona situation comes under control it will take a long time for all the companies and economies to recover and reach its actual level. So, leaving a job during this crisis time is the worst decision one can make and also companies do not want to lose them.