A 3,000% jump in jobless claims has devastated the US job market

From today’s CNN Online:

The last three weeks have marked one of the most devastating periods in history for the American job market, as first-time claims for unemployment benefits have surged more than 3,000% since early March. Businesses continue to lay off and furlough workers amid the coronavirus outbreak.6.6 million US workers filed for their first week of unemployment benefits in the week ending March 28, according to the Department of Labor — a new historic high.

That was far greater than economists had expected, and more than 3,000% the pre-pandemic levels. Unemployment claims at this level suggest a severe job market decline hardly any American alive has ever seen in their lifetimes.

Economists characterized the increase as “monstrous,” “stunningly awful,” and “a portrait of disaster.”Including the prior week’s 3.3 million initial claims, Americans have filed nearly 10 million jobless claims in the last two weeks alone. That corresponds to roughly 6% of America’s 165 million strong work force, which in turn implies a 9.5% unemployment rate, according to Citi economist Andrew Hollenhorst.

Read the complete article here.

Federal government is weighing an infrastructure push to create jobs

From today’s New York Times:

Fears are growing that the global downturn could be far more punishing and long lasting than initially feared — potentially enduring into next year, and even beyond — as governments intensify restrictions on business to halt the spread of the pandemic, and fear of the virus impedes consumer-led economic growth.

“This is already shaping up as the deepest dive on record for the global economy for over 100 years,” said Kenneth S. Rogoff, a Harvard economist and co-author of “This Time Is Different: Eight Centuries of Financial Folly,” a history of financial crises. “Everything depends on how long it lasts, but if this goes on for a long time, it’s certainly going to be the mother of all financial crises.”

Stocks on Wall Street tumbled, with the S&P 500 closing down more than 4 4 percent, bringing its decline over two days to 6 percent, as investors braced for worsening economic conditions ahead.

The economic readings continue to worsen as well. On Wednesday, surveys of manufacturing and factory activity in the United States, Europe and Japan showed activity slowing to levels not seen in a decade or more. In the United States, factory orders and employment measures fell to their lowest since 2009, the Institute for Supply Management said.

In Washington, there was growing concern that the $2 trillion stimulus package enacted last week could be insufficient. Democrats and Republicans in Congress, as well as President Trump, are increasingly looking toward enacting a huge new infrastructure plan that could create thousands of jobs.

Read the complete article here.

Some workers won’t qualify for some unemployment benefits in relief package

From today’s CNBC News Online:

The $2 trillion coronavirus relief package President Donald Trump signed into law Friday significantly expands unemployment benefits for out-of-work Americans.

The law pays laid-off and furloughed workers an extra $600 a week, for up to four months, and extends existing state benefits by 13 weeks. It also offers jobless benefits to previously ineligible groups, such as gig workers and freelancers. Nearly 3.3 million people filed first-time claims for unemployment last week — shattering the previous record, set in 1982, by around 2.6 million people, according to the Labor Department.

“It truly is, in a lot of ways, a very generous package,” said Chris Moran, a partner in the labor and employment practice group at law firm Pepper Hamilton in Philadelphia. Yet, some could receive smaller payments than others or miss out entirely. Here are some of those groups.

Tip workers

Workers who derive a big chunk of their paychecks from tips, like waiters and bartenders, may get smaller unemployment checks than they hope to. It largely depends on whether an employer reports those tips as income. States determine the size of unemployment checks based on a worker’s prior wages, generally over the last four quarters.

Gig, self-employed workers without pay records

While gig and self-employed workers are newly eligible for unemployment benefits, they may not qualify if they don’t have the proper work and pay documentation. This will largely depend on forthcoming guidance from the Labor Department about the kinds of acceptable documentation, and states’ interpretation of that guidance — currently among the biggest wild cards in the unemployment expansion, experts said.

Read the complete article here.

Amazon, Instacart Workers Demand Coronavirus Protection And Pay

From NPR News Online:

Some Amazon warehouse workers in Staten Island, N.Y., and Instacart’s grocery delivery workers nationwide walked off their jobs on Monday. They are demanding stepped-up protection and pay as they continue to work while much of the country is asked to isolate as a safeguard against the coronavirus.

The protests come as both Amazon and Instacart have said they plan to hire tens of thousands of new workers. Online shopping and grocery home delivery are skyrocketing as much of the nation hunkers down and people stay at home, following orders and recommendations from the federal and local governments.

This has put a spotlight on workers who shop, pack and deliver these high-demand supplies. Companies refer to the workers as “heroes,” but workers say their employers aren’t doing enough to keep them safe.

The workers are asking for a variety of changes:

  • Workers from both Amazon and Instacart want more access to paid sick time off. At this time, it’s available only to those who have tested positive for the coronavirus or get placed on mandatory self-quarantine.
  • Amazon workers want their warehouse to be closed for a longer cleaning, with guaranteed pay.
  • Instacart’s grocery delivery gig workers are asking for disinfectant wipes and hand sanitizer and better pay to offset the risk they are taking.

Read the complete article here.

Coronavirus to cost California 125,000 hotel jobs trade group says

From today’s Los Angeles Times:

Struck by a severe drop in travel demand, California’s hotel industry is expected to lose more than 125,000 jobs in the next few weeks, more than any other state, an industry trade group estimated Monday.

The hotel industry in the Golden State is expected to be hit hardest by the coronavirus outbreak because California has the most hotel jobs — about 285,000 — according to the American Hotel and Lodging Assn. trade group.

In addition to the loss of 125,000 hotel jobs, another 414,000 jobs that are supported by the hotel industry, such as waiters, busboys, bartenders and limousine drivers, could disappear in the next few weeks, the group said.

Only last month, the average occupancy rate — the percentage of hotel rooms filled — was 62% across the country, according to STR Global, a Tennessee company that tracks hotel data. By mid-March, the average occupancy rate nationwide had dropped to 53%.

To break even, hotels need to have an occupancy rate of 41% to 63%, depending on the type of hotel, according to industry analysis. Upscale hotels need a higher occupancy rate to pay for extra amenities, such as room service, valets and concierges, while economy hotels can break even with a much lower occupancy rate.

Because of the pandemic, hotels in some cities, including Seattle; San Francisco; Austin, Texas; and Boston, are reporting occupancy rates below 20%, with some individual hotels already shutting down, according to the American Hotel and Lodging Assn.

“The impact to our industry is already more severe than anything we’ve seen before, including September 11th and the Great Recession of 2008 combined,” Chip Rogers, chief executive of the trade association said in a statement Monday.

The lodging industry requested the federal government provide $150 billion in financial aid to keep the hotel industry afloat during the crisis. That is in addition to the $100 billion requested by other segments of the travel industry, such as convention centers, theme parks and tour companies.

Read the complete article here.

Op-Ed: Is the Coronavirus Shaping the Future of How We Work?

From today’s New York Times:

Both the irony and the symbolism were evident as members of the California Future of Work Commission gathered in a virtual meeting, hastily rescheduled in the midst of an unfolding crisis.

The pandemic, and the recession all but certain to follow, threaten to pre-empt and overwhelm efforts to shape the future of work, and thus the future of California — how to create good jobs, reduce poverty and redefine relationships and structures to narrow the enormous income inequality that overshadows the state’s wealth and success.

Thus the recent meeting became not only an experiment for doing business in a post-coronavirus world but also a conversation laden with doubts, fears and aspirations about how the future may evolve.

The coronavirus will have a silver lining if it serves as the impetus for constructive upheaval, in the way that the sudden forced reliance on telecommunication is already having an impact.

“We are conducting a natural experiment,” said Peter Schwartz, a futurist and member of the commission. “One we would prefer not to have conducted. But we’re going to learn the hard way, rather quickly and by necessity, everything that can be done remotely. … We’re not going back to zero afterward. What do we learn out of all this in terms of how our society can change?”

World War II, the last international crisis that upended life in California, transformed the state into a military center and ushered in decades of growth that reshaped the Golden State. There is already a sense that in a different way, the coronavirus may create an inflection point of comparable significance. For better or worse, whenever the epidemic subsides, there will be no going back.

Read the complete article here.

Pandemic Erodes Gig Economy Work

From today’s New York Times:

It was just after 11 a.m. last Wednesday when Jaime Maldonado, 51, pulled his rented Nissan into a lot outside San Francisco International Airport. He figured he had a long wait ahead — about two hours — before Lyft would ping him to pick up a passenger.

Occasionally, jets roared overhead — but not many, which meant not enough passengers for Mr. Maldonado, who said that before the coronavirus outbreak, he spent just 20 to 40 minutes waiting outside the airport for customers. To kill time, he got out of his car, looping the mask he recently started wearing around his wrist, and went to talk to other drivers.

As the minutes ticked by, Mr. Maldonado wondered out loud, “What am I going to do to pump gas and feed my kids tomorrow?” His number of rides in a typical week had dropped to around 50 from 100 earlier in the month, he said, and his payout had plunged by half to about $600 a week, from which Lyft would subtract the rental fee for his car.

The coronavirus pandemic is exposing the fragile situations of gig economy workers — the Uber and Lyft drivers, food-delivery couriers and TaskRabbit furniture builders who are behind the convenience-as-a-service apps that are now part of everyday life. Classified as freelancers and not full-time employees, these workers have few protections like guaranteed wages, sick pay and health care, which are benefits that are critical in a crisis.

While gig economy companies like Uber and DoorDash have promoted themselves as providing flexible work that can be lifelines to workers during economic downturns, interviews with 20 ride-hailing drivers and food delivery couriers in Europe and the United States over the past week showed that the services have been anything but that.

Instead, as the fallout from the coronavirus spreads, gig workers’ earnings have plummeted and many have become disgruntled about their lack of health care. Many others are also feeling economic pain from the outbreak — layoffs have hit workers in retailing, airlines, hotels, restaurants and gyms — but even as public health agencies have recommended social isolation to insulate people from the virus, gig workers must continue interacting with others to pay their bills.

Read the complete article here.

More than half of American jobs are at risk because of coronavirus

From CNN News Online:

A week ago, Darrin Dixon wasn’t all that concerned about the coronavirus. Now he’s losing sleep over the prospect that the virus could cost him his food truck and catering business, which provides three jobs, including his own. Sales at Dixon’s food truck, KC Cajun, plunged this week as businesses in downtown Kansas City, Missouri, where he’s based, have shifted to working from home. His catering business is having cancellations like he’s never seen before.

“I know I’m stressed. I’ve had sleepless night. It’s just scary because we don’t know what we’re going to do,” said Dixon. His situation is a harbinger of the problems facing the US economy from the coronavirus, which could be far deeper and more widespread than they initially appeared. And because it will hit small businesses like Dixon’s particularly hard, it could take years for the economy to fully recover — even after the coronavirus crisis is long over. It’s not just jobs at airlineshotelsamusement parks and sporting events that are at risk. It’s the food trucks that serve office workers or school students who are now staying home. It’s the dry cleaners who clean the dress clothes that will not be worn as workers stay away from their offices. It’s hair stylists, dog walkers, babysitters, restaurant workers and others who provide services that people no longer need or can’t afford.

More than half of US jobs at risk

Nearly 80 million jobs in the US economy are at high or moderate risk today, according to analysis in the last week from Moody’s Analytics. That’s more than half of the 153 million jobs in the economy overall. That doesn’t mean that all those jobs will be lost. But it’s probable that as many as 10 million of those workers could see some impact to their paychecks — either layoffs, furloughs, fewer hours or wage cuts, said Mark Zandi, chief economist at Moody’s Analytics.

Of those 80 million jobs, Moody’s Analytics projects that 27 million are at high risk due to the virus, primarily in transportation and travel, leisure and hospitality, temporary help services and oil drilling and extraction. Maybe 20% of those workers, comprising about 5 million jobs, will be affected, Zandi said. The other 52 million jobs are judged to face “moderate risk.” They are in areas such as retail, manufacturing, construction and education. Some 5 million of those workers are could be unemployed or underemployed.

Read the complete article here.

Dear COVID-19: Working from home is awesome. Here’s how to excel at it

From today’s Los Angeles Times:

I love working from home.

I learned this week that this is apparently a controversial stance. The unfolding coronavirus crisis is forcing many of us to work from home in an effort to help stop the spread. Not everyone greeted the news with a cheer. And that’s how I learned there are some people who claim to enjoy putting on work clothes and packing a sad desk lunch and battling morning traffic. Not me.

I’ve had jobs where I worked from home full-time, and jobs — like the one I have now — where I normally work from home every once in a while. I don’t want to brag, but I’m pretty good at it.

A lot of the “how to work from home” guides popping up this week seem to assume no one has ever pulled out their laptop to check their work email from home before. I trust you know the basics. So here are some tips to work from home more efficiently, stay connected with your colleagues, and maybe even enjoy yourself a little bit.

1. Sleep later.

How long is your commute? And how long is your pre-office morning routine — selecting an outfit, doing your hair, figuring out what you’ll eat that day and deciding whether to pack a gym bag? Add that time up, and then set your morning alarm back by that amount of time.

2. Set up your desk.

Whatever space you’re going to be working from at home, clean it. Normally, my desk at home has a bunch of bills I need to file, a few bottles of nail polish, a couple of books, some mail and a handful of old newspapers. If you are like me, mend your wicked ways. Make your home desk (or kitchen table) feel like your work desk. Have everything there that you’d have at work: a phone charger, a box of tissues, a water bottle, a mug, pens and paper.

3. Be ready for prime time.

Teleconferencing and video calls are not the future. They are the present. Save your office’s dial-in number to your phone’s favorites so you’re ready to jump on a call at a moment’s notice.

Read the complete article here.

The Bleak Job Landscape of Adjunctopia for Ph.D.s

From today’s New York Times:

The humanities labor market is in crisis. Higher education industry trade publications are full of essays by young Ph.D.s who despair of ever finding a steady job. Phrases like “unfolding catastrophe” and “extinction event” are common. The number of new jobs for English professors has fallen every year since 2012, by a total of 33 percent.

In response to these trends and a longer-term decline in academic job security, the Democratic presidential candidate Bernie Sanders has made a proposal. In exchange for federal funding to reduce public college and university tuition to zero, he said, at least 75 percent of college courses would have to be taught by tenured or tenure-track professors. Currently, that proportion is less than 40 percent and dropping.

How this happened is a story of a rupture in the way the academy produces and consumes people with scholarly credentials. In 1995, roughly 940,000 people were employed teaching college. Of those, about 400,000 had tenure or were on track to get it. They enjoyed professional status, strong job security, relatively good pay (on average), and the freedom to speak their minds.

The rest were so-called contingent or adjunct faculty: some employed full time, others filling in a course or two per semester. They had lower pay, less status and tenuous job security, particularlyif they spoke their minds. There were also thousands of graduate students, not counted in the numbers above, teaching as part of their training. (The University of California, Santa Cruz, which is known to be progressive even by the standards of academia, recently fired 54 graduate assistants who were striking for higher pay.) The percentage of professors on the tenure track had been slowly declining since the 1970s. In the late 1990s came a demographic event that would ultimately throw the university labor market into a tailspin: the first college years of the so-called millennials, those born from the early 1980s to the mid-1990s.

Colleges swelled with students over the next decade and a half, with undergraduate enrollment increasing from 12.2 million in 1995 to a peak of 18.1 million in 2011. Colleges needed to hire hundreds of thousands of additional professors. Administrators had options. They could have kept the ratio of tenured to nontenured about the same, using new tuition revenue to create more tenure-track positions.

But that’s not what happened. Instead, the number of contingent faculty more than doubled, to 1.1 million. The number of tenured and tenure-track faculty, by contrast, increased by only 9.6 percent, to 436,000.

Read the complete article here.