Since the pandemic began, the number of individuals receiving unemployment benefits has remained quite high. In mid-August, approximately 29 million people were receiving state or federal unemployment assistance.
Throughout August, U.S. companies announced planned layoffs of furloughed and active workers, including American Airlines which plans to shed 19,0000 jobs by Oct. 1.
In addition to the airline industry, hospitality and leisure has been battered by the pandemic as fewer Americans book stays at resorts, casinos, and hotels. A prime example of this being MGM Resorts, which announced plans to cut 18,000 jobs, equal to one-third of the company’s total workforce.
Economists have argued that sweeping layoffs throughout the country show a change in thinking on the part of companies. In the beginning, it was assumed that the pandemic would only last a few weeks, making furloughs and layoffs temporary.
Companies have begun to change their strategy as it becomes clearer that a post-pandemic recovery will not arrive as quickly as they had anticipated.
