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A Torrent of Job Losses Threatens to Overwhelm the U.S. Economy | A Torrent of Job Losses Threatens to Overwhelm the U.S. Economy |
(about 13 hours later) | |
In an early sign of the coronavirus pandemic’s devastating impact on American workers, the Labor Department on Thursday reported a 30 percent increase in unemployment claims last week, one of the largest spikes on record. | In an early sign of the coronavirus pandemic’s devastating impact on American workers, the Labor Department on Thursday reported a 30 percent increase in unemployment claims last week, one of the largest spikes on record. |
The surge — 281,000 new claims — reflects a crushing new reality: Any hopes that businesses could keep their staffs largely intact have quickly evaporated. | The surge — 281,000 new claims — reflects a crushing new reality: Any hopes that businesses could keep their staffs largely intact have quickly evaporated. |
“I started laying people off this Monday, not knowing how bad it was,” said Barry Rosenberg, founder of Vending One, a Los Angeles company that stocks and maintains vending machines and self-serve kiosks in malls, office complexes, jails, schools and casinos. “On Tuesday, we started restricting hours. By next Monday, I don’t know that there’ll be any work.” | “I started laying people off this Monday, not knowing how bad it was,” said Barry Rosenberg, founder of Vending One, a Los Angeles company that stocks and maintains vending machines and self-serve kiosks in malls, office complexes, jails, schools and casinos. “On Tuesday, we started restricting hours. By next Monday, I don’t know that there’ll be any work.” |
Jon Blomer, who services accounts and refills those machines, was one of the first to lose his job. “There’s not enough hours to go around, and everyone’s been there longer,” said Mr. Blomer, 33, who has worked at Vending One for a year. “I understand.” | Jon Blomer, who services accounts and refills those machines, was one of the first to lose his job. “There’s not enough hours to go around, and everyone’s been there longer,” said Mr. Blomer, 33, who has worked at Vending One for a year. “I understand.” |
Job losses have become so sensitive that the Trump administration is asking state labor officials to delay releasing the precise number of unemployment claims. | Job losses have become so sensitive that the Trump administration is asking state labor officials to delay releasing the precise number of unemployment claims. |
In an email sent Wednesday and shared with The New York Times, the Labor Department instructed state officials to do nothing more than “provide information using generalities to describe claims levels (very high, large increase)” until the department releases the total number of national claims next Thursday. | In an email sent Wednesday and shared with The New York Times, the Labor Department instructed state officials to do nothing more than “provide information using generalities to describe claims levels (very high, large increase)” until the department releases the total number of national claims next Thursday. |
The message noted that the data was “monitored closely by policymakers and financial markets to determine appropriate actions in light of fast-changing economic conditions” and should be closely held until the Labor Department’s report. | The message noted that the data was “monitored closely by policymakers and financial markets to determine appropriate actions in light of fast-changing economic conditions” and should be closely held until the Labor Department’s report. |
To stanch the torrent of job losses, officials in Washington are racing to design a trillion-dollar stimulus. Senate Republicans put forward a blueprint on Thursday that includes loans to big corporations and small businesses, large corporate tax cuts, and checks as large as $1,200 per adult to individuals earning less than $99,000 a year. | To stanch the torrent of job losses, officials in Washington are racing to design a trillion-dollar stimulus. Senate Republicans put forward a blueprint on Thursday that includes loans to big corporations and small businesses, large corporate tax cuts, and checks as large as $1,200 per adult to individuals earning less than $99,000 a year. |
President Trump said he would be open to having the government take equity stakes in companies that require federal help. But Democrats are pushing to direct more assistance to workers and families rather than to corporations. | President Trump said he would be open to having the government take equity stakes in companies that require federal help. But Democrats are pushing to direct more assistance to workers and families rather than to corporations. |
In the meantime, as employers at global conglomerates and kitchen-table offices anxiously grapple with the economy’s partial shutdown, tens of thousands of laid-off workers like Mr. Blomer are jamming government websites and phone lines to apply for unemployment insurance. | In the meantime, as employers at global conglomerates and kitchen-table offices anxiously grapple with the economy’s partial shutdown, tens of thousands of laid-off workers like Mr. Blomer are jamming government websites and phone lines to apply for unemployment insurance. |
In some states, overwhelmed systems collapsed under the weight. | In some states, overwhelmed systems collapsed under the weight. |
“It was so frustrating,” said Tim Tilley, who was laid off from his kitchen job at an Olive Garden in Ohio on Tuesday. For four hours that day and eight hours on Wednesday, he tried to file a claim. The website crashed repeatedly — after three attempts, he was locked out. He called dozens of times but was bumped from prompt to prompt, only to end up at the original automated message. | “It was so frustrating,” said Tim Tilley, who was laid off from his kitchen job at an Olive Garden in Ohio on Tuesday. For four hours that day and eight hours on Wednesday, he tried to file a claim. The website crashed repeatedly — after three attempts, he was locked out. He called dozens of times but was bumped from prompt to prompt, only to end up at the original automated message. |
Rules for unemployment benefits vary across the country. States follow federal guidelines but administer their own programs. Each state uses its own formula to decide what percentage of weekly wages will be covered (50 percent, for example) and for how long (generally 26 weeks). | Rules for unemployment benefits vary across the country. States follow federal guidelines but administer their own programs. Each state uses its own formula to decide what percentage of weekly wages will be covered (50 percent, for example) and for how long (generally 26 weeks). |
Emergency legislation that Mr. Trump signed into law on Wednesday would increase funding for states with surges in claims and pare back eligibility restrictions like waiting times and job search requirements. Although the rules are shifting, policy experts said, workers who have been quarantined or furloughed without pay should qualify. | Emergency legislation that Mr. Trump signed into law on Wednesday would increase funding for states with surges in claims and pare back eligibility restrictions like waiting times and job search requirements. Although the rules are shifting, policy experts said, workers who have been quarantined or furloughed without pay should qualify. |
Still, many workers could be left out entirely. Some states do not cover part-time workers, and many others have made it difficult for temporary workers to qualify. Gig workers are also often ineligible because they are typically considered self-employed. | Still, many workers could be left out entirely. Some states do not cover part-time workers, and many others have made it difficult for temporary workers to qualify. Gig workers are also often ineligible because they are typically considered self-employed. |
In Maryland, for example, many applicants are confused about whether they would qualify for benefits if they became sick from the coronavirus and had to take time off or quit. The answer: No. Self-quarantines don’t qualify, either. But if a business had to shut down or lay workers off because of the virus, they could qualify. | In Maryland, for example, many applicants are confused about whether they would qualify for benefits if they became sick from the coronavirus and had to take time off or quit. The answer: No. Self-quarantines don’t qualify, either. But if a business had to shut down or lay workers off because of the virus, they could qualify. |
Nicholas Javier, a restaurant server at the Westin St. Francis Hotel in San Francisco, is hoping he will. On Monday, he received a text indicating that he should not show up the next day. The hotel restaurant where he worked was being shut down, and he and his fellow servers were no longer needed. Nearly all of the hotel’s roughly 140 housekeepers were sent home as well, said Mr. Javier, a union shop steward. | Nicholas Javier, a restaurant server at the Westin St. Francis Hotel in San Francisco, is hoping he will. On Monday, he received a text indicating that he should not show up the next day. The hotel restaurant where he worked was being shut down, and he and his fellow servers were no longer needed. Nearly all of the hotel’s roughly 140 housekeepers were sent home as well, said Mr. Javier, a union shop steward. |
Mr. Javier had worked at the hotel about six years and earned $600 to $700 a week during the winter, typically a slow season. He said he and his co-workers got word of deep cuts two weeks ago, after which his hours were scaled back. | Mr. Javier had worked at the hotel about six years and earned $600 to $700 a week during the winter, typically a slow season. He said he and his co-workers got word of deep cuts two weeks ago, after which his hours were scaled back. |
“My anxiety level is through the roof,” he said. | “My anxiety level is through the roof,” he said. |
For businesses, the economic effects can ripple out in helter-skelter fashion. | For businesses, the economic effects can ripple out in helter-skelter fashion. |
For the City Center Investment Corporation, a real estate development company revitalizing downtown Allentown, Pa., the property management and construction arms are all operating but the restaurants and hotels in its portfolio are dark, said J.B. Reilly, the president. | For the City Center Investment Corporation, a real estate development company revitalizing downtown Allentown, Pa., the property management and construction arms are all operating but the restaurants and hotels in its portfolio are dark, said J.B. Reilly, the president. |
“Most business owners are right now trying to make decisions to allow them to operate in the long run and make smart decisions for themselves, their businesses and their employees,” he said. | “Most business owners are right now trying to make decisions to allow them to operate in the long run and make smart decisions for themselves, their businesses and their employees,” he said. |
The Renaissance Allentown Hotel, one of City Center’s properties and part of the Marriott chain, is laying off virtually all of its more than 100 workers at 5 p.m. on Friday. Charles Reece, the general manager, is one of a handful of employees who will stay on for a couple of weeks to wrap up. | The Renaissance Allentown Hotel, one of City Center’s properties and part of the Marriott chain, is laying off virtually all of its more than 100 workers at 5 p.m. on Friday. Charles Reece, the general manager, is one of a handful of employees who will stay on for a couple of weeks to wrap up. |
“I suppose I will be applying for unemployment benefits,” Mr. Reece said. “I haven’t even thought about myself, because there is so much to do in closing.” | “I suppose I will be applying for unemployment benefits,” Mr. Reece said. “I haven’t even thought about myself, because there is so much to do in closing.” |
Planning ahead is nearly impossible, employers and workers say, without knowing how long the crisis will last or how much government assistance might be available. | Planning ahead is nearly impossible, employers and workers say, without knowing how long the crisis will last or how much government assistance might be available. |
Updated June 16, 2020 | Updated June 16, 2020 |
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | |
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
Many owners are facing the choices that Robert Burns confronted when he thought about what the pandemic meant for the future of his company — and its 200 workers. | Many owners are facing the choices that Robert Burns confronted when he thought about what the pandemic meant for the future of his company — and its 200 workers. |
“At first, we were trying to figure out a plan where nobody’s income would be affected,” said Mr. Burns, one of the founders and the president of Night Shift Brewing, a family-owned brewery and taproom in Everett, Mass. “As things quickly deteriorated, we realized that wasn’t feasible.” | “At first, we were trying to figure out a plan where nobody’s income would be affected,” said Mr. Burns, one of the founders and the president of Night Shift Brewing, a family-owned brewery and taproom in Everett, Mass. “As things quickly deteriorated, we realized that wasn’t feasible.” |
He furloughed 170 of his employees, saying he would maintain their health benefits while they collect unemployment benefits. The founders eliminated their own salaries to finance the plan. He hopes to bring all the workers back soon. | He furloughed 170 of his employees, saying he would maintain their health benefits while they collect unemployment benefits. The founders eliminated their own salaries to finance the plan. He hopes to bring all the workers back soon. |
“It’s still a really tough call — they definitely won’t be making the same money they were last week,” he said, “but it’s the best we can do.” | “It’s still a really tough call — they definitely won’t be making the same money they were last week,” he said, “but it’s the best we can do.” |
For Nick Crews, chief executive of Crews Hospitality, which operates airport concessions around the country, the numbers were stark: 34 outlets at four airports with roughly 1,000 employees and sales that are down about 70 percent from last year. | For Nick Crews, chief executive of Crews Hospitality, which operates airport concessions around the country, the numbers were stark: 34 outlets at four airports with roughly 1,000 employees and sales that are down about 70 percent from last year. |
He started this week with a few dozen layoffs and furloughs and reduced hours at the gift shops, restaurants and newsstands, and he expects several dozen more by Monday. He also sent requests to the airports and transportation authorities for a rent reprieve and permission to delay some required refurbishments. | He started this week with a few dozen layoffs and furloughs and reduced hours at the gift shops, restaurants and newsstands, and he expects several dozen more by Monday. He also sent requests to the airports and transportation authorities for a rent reprieve and permission to delay some required refurbishments. |
Every morning, he holds a crisis management meeting at 6:30 from his home office. | Every morning, he holds a crisis management meeting at 6:30 from his home office. |
To Mr. Crews, hanging on to three-quarters of his staff would be an optimistic outcome. He fears that without some kind of government intervention, he would have to scale back by half, and that half the employers in his industry could fail. | To Mr. Crews, hanging on to three-quarters of his staff would be an optimistic outcome. He fears that without some kind of government intervention, he would have to scale back by half, and that half the employers in his industry could fail. |
“As a leader, I’m trying to be positive,” he said. “I trust we can get out of this. But it is an emotional roller coaster.” | “As a leader, I’m trying to be positive,” he said. “I trust we can get out of this. But it is an emotional roller coaster.” |
In Los Angeles, Mr. Rosenberg of Vending One watched on a monitor as sales parachuted toward zero. On Thursday morning, he got a phone call telling him that Las Vegas casinos were closing for 30 days and that he essentially had 24 hours to retrieve the money from his machines before the doors were locked. | In Los Angeles, Mr. Rosenberg of Vending One watched on a monitor as sales parachuted toward zero. On Thursday morning, he got a phone call telling him that Las Vegas casinos were closing for 30 days and that he essentially had 24 hours to retrieve the money from his machines before the doors were locked. |
His warehouse is full of precut packaged sandwiches and candy bars, but he has nowhere to put them. | His warehouse is full of precut packaged sandwiches and candy bars, but he has nowhere to put them. |
“I can’t sleep, I can’t eat, I’m walking in circles in the middle of the night,” he said. “It’s like being in a car accident in slow motion.” | “I can’t sleep, I can’t eat, I’m walking in circles in the middle of the night,” he said. “It’s like being in a car accident in slow motion.” |
Reporting was contributed by Jonathan Martin, Noam Scheiber, Tiffany Hsu, Tara Siegel Bernard and Ben Casselman. | Reporting was contributed by Jonathan Martin, Noam Scheiber, Tiffany Hsu, Tara Siegel Bernard and Ben Casselman. |