The most affected sectors of the economy in history. USA
In just 2 months, as many jobs were destroyed as were created in 10 years in the United States. In 2008-2010, it took 24 months to make the transition from maximum to minimum employment and 6.3% of jobs or almost 9 million were lost during this period. Now, over 2 months, the reduction in employment amounted to 14% or 21.4 million jobs. In terms of the intensity of compression of economic activity, nothing like this has happened in the entire history of the USA.
These are excellent data, you can’t imagine any better - the stock markets, as usual in narcotic psychosis and hysteria, choking with joy, rewrite the next maximums on financial multiples by no less than 30% from the level of January 2020. But so far they have been falling there again mind, how are things in the real economy?
In the US Employment Report, you can estimate the extent of the damage and the distribution by sector of the economy.
The industry of culture, mass sports and entertainment (Arts, Entertainment, and Recreation) loses 55% of employees in 2 months,
Fitness clubs, laundries, hairdressers, massage and beauty salons (Personal and Laundry Services) minus 54% of the employed
Motion Picture and Sound Recording Industries minus 48% of employees
Cafes, Bars, Restaurants (Food Services and Drinking Places) minus 48%
Hotels, motels (Accommodation) minus 42%
Manufacture of clothing and footwear (Apparel) minus 40%
Production of vehicles and transport equipment minus 25%
The table shows more than 86% of total employment losses.
In absolute terms, retail sales and administrative and maintenance services lose a lot. Administrative and Waste Services are usually services for garbage collection, waste management, maintenance of buildings and premises, and so on. And in retail sales, the most significant losses were in sales of clothes, shoes (minus 59%), furniture, accessories and household goods (minus 46%), sports goods, and hobby items (minus 36%)
Loses education 13% of employment. But here's the surprise - where are some of the most significant job cuts? In medicine! A decrease of 2.15 million or 10.4%, which is comparable with all retail trade. The outpatient healthcare industry has reduced more than 1 million employees — it includes outpatient services such as doctors and dentists' offices, home health care facilities and medical laboratories, but not inpatient care such as hospitals and medical facilities or social assistance. Hospitals are also cutting, but only by 135 thousand jobs, but social assistance is losing more than 600 thousand or 15% of the number of employees.
The table shows the attachment of the first level as a red background, the attachment of the second level as a green background, and the attachment of the third level as a red font without a background. Blue background - the main subcategory, black background - a category of private or federal level.
Who has not lost anything?
Information companies, both in the production of equipment and software, including information services. Financial and insurance companies have not lost, telecommunication and utilities companies have no losses. Couriers and main carriers do not lose, railway transport and oil and gas transportation do not lose. Warehouse and wholesale workers suffer extremely limited losses.
The federal government keeps employment and even increases, but local and municipal governments reduce employment due to cash gaps and problems in access to the open capital market.
BLS classifies over 90% of all losses as “On temporary layoff”, i.e. temporary losses, which are usually concentrated in seasonal work, for example, as hotels or tourism, but this time it covered almost all sectors. “On temporary layoff” implies some of the employer's intentions to return the workforce as part of a changing environment. But intentions are not identical with obligations, and even having obligations does not guarantee room for maneuver if the business goes into bankruptcy or limited restructuring. So temporary can become permanent losses.
But there are important differences between modern collapse and previous ones. Previously, the loss of jobs led to some suffering, or at least discomfort. Now, otherwise, the loss of a job in 8 out of 10 cases leads either to maintenance, or even to growth of income !!! How the hell is this possible? Unemployment benefits may exceed $ 2,400 per month, which is equal to or higher than the total net income of more than 80% of all those who have lost their jobs, and these are mainly low-income workers. They don’t have any sense at all going back to work, and employers are encouraging workers to go on “forced leave” to the so-called “On temporary layoff” in order to close the cash income gap at the expense of the federal government. Over 15 million out of 22 million people will never think of such a strange idea as returning to work - washing toilets, delivering pizza or making pancakes, but who needs it? Because on the welfers, they shovel the cache with shovels. Why clean the toilets when you get 1.5 times more from the feds without doing anything at all ?!
Remember the example of John, who took out a cache suitcase from JPMorgan, as a pure subsidy, a gift from the Fed and the federals. For what? Just because. The feds compensate for all the shortfall in revenue for the quarter, even thanks are not required from John. Just pretend that he pays his obligations as before.
Do you realize what we are approaching? They, as announced, flood the economy with a cache, effectively taking the supply of goods and services to one third of the normal, while maintaining purchasing power at the same level - creating exorbitant price pressure. The road to hell has just been opened!