Left out: More workers now losing hope of getting back jobs

By ALEXANDRA OLSON AND MAE ANDERSON

Left out: More workers now losing hope of getting back jobs

By ALEXANDRA OLSON AND MAE ANDERSON

1 of 7In this Friday, June 5, 2020 photo, Dawn Abbott, chief executive officer of Fun Productions, a small corporate events company that she started in 1991, is shown amid the myriad unused items stacked in the company’s northeast Denver warehouse. The woman’s events business was hit hard by concellations with the spread of the new coronavirus and now, three months into the downturn, she does not foresee a quick rebound in the future of her enterprise. (AP Photo/David Zalubowski)

NEW YORK (AP) — Eric Benz didn’t worry very much when his graphic design firm in Atlanta laid him off in March. He felt sure he’d be recalled to work once the viral pandemic eased and his firm’s clients resumed spending.

Three months later, there’s been no call. Instead, Benz has applied for gig work as an Instacart shopper.

Hope has given way to an urgent need to pay bills because Benz’s unemployment benefits haven’t yet come through. Benz has negotiated with his mortgage lender to defer payments on the home he and his wife bought earlier this year. But the deferral won’t last long.ADVERTISEMENT

“I’m doing everything I can,” said Benz, 37. “It will take a little while to get back.”

Even as the U.S. economy begins to flicker back to life, even as job cuts slow and some laid-off people are called back to work, the scope of the devastation left by the viral pandemic has grown distressingly clear to millions who’d hoped for a quick return to their jobs: They may not be going back anytime soon.

With many businesses reopening, the government surprisingly announced Friday that contrary to expectations of further layoffs, the economy added 2.5 million jobs in May, and the unemployment rate fell from 14.7% to 13.3%.

But the harsh reality is that last month’s rehirings aren’t expected to continue at the same pace. Forty-two percent of the layoffs caused by the pandemic could become permanent job losses, according to a study by the University of Chicago’s Becker Friedman Institute for Economics. Many businesses, from tech start-ups to small shops and big retailers, may not survive the loss of revenue despite federal rescue aid.

That aid will run out soon. And despite gradual re-openings, public fear of the virus is still keeping many people away from bars, restaurants, hotels, hair salons and other retail establishments. Few have resumed traveling. Sports and entertainment venues remain closed.

That collective slowdown continues to keep millions of laid-off people on the sidelines. In April, 78% of people who were unemployed saw their jobs as temporary. In May, that figure dipped to 73%, according to the jobs report. And a declining proportion of the unemployed were classified as temporarily laid off.

In Charlotte, North Carolina, Alex Jansen’s company reopened Monday. But Jansen, a marketing administrator, didn’t get the call he expected calling him back to work. He’s spending his time learning Adobe programs to strengthen his resume. As unemployment benefits run low, he wonders if he’ll feel compelled to leave Charlotte, where job prospects now look sparse to him……more here

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