When temporary downsizing becomes permanent. The recent announcements that Many furloughed staff may never return to permanent employment is guaranteeing the depth and duration of the down turn. “L”. Not “V”. America will, by Friday, need to acknowledge an unemployment rate of between 15-20 %. From close to 3% last year. The permanent job losses at Boeing , Delta Airlines , Airbnb, Hilton hotels are concerning but more worrying is the increasing number of firms going into business rescue. Or restaurants, resorts and cinemas that are unlikely to open post this event. Then we start looking at small and medium sized businesses going to the wall. We may have lost economic fat but now we are losing Business muscle. Wailing at government lockdown actions is not helping. 70% of Americans are unwilling to go to crowded facilities anymore. You can’t incentivise anxious and broke unemployed consumers to consume more. Remember , lifting lockdown does not mean the end of the pandemic. It Just means that they now have room in ICU for you. Rebuilding is now a socioeconomic problem. It’s going to take steady hands to hold the community together until we have a vaccine while we run through cycles of learning and rebuilding. There is no silver bullet.
When temporary downsizing becomes permanent

Herman
- May 7, 2020
- , 12:05 pm
- , COVID19
What it this is permanent?