The Strategist

Demand for jobs in the US flows from catering and tourism to retail and delivery

03/23/2020 - 07:39

According to the forecasts of Goldman Sachs investment bank, a total of 2.25 million Americans lost their jobs last week. The virus pandemic, which caused quarantine and the shutdown of many enterprises, has already resulted in massive reductions in small and medium-sized businesses in the areas of catering, tourism and entertainment. At the same time, large retailers, faced with rush demand from customers, announced plans to hire an additional up to 250 thousand people. The demand for employees and delivery services is growing. However, experts believe that retail and delivery are unlikely to compensate for the loss of jobs in other industries.

Ben Sutherland via flickr
Ben Sutherland via flickr
Last Thursday evening, Goldman Sachs, an American investment bank, said that due to the COVID-19 coronavirus epidemic, quarantine and the shutdown of many US businesses, the number of Americans who lost their jobs that week alone was 2.25 million, eight times more compared to the previous one. US authorities recorded a sharp jump in applications for unemployment benefits: last Thursday, 281 thousand applications filed in the previous week. This is 33% more than a week earlier. This growth rate is a record since 1992.

Labor market experts have already noted a decrease in demand for employees in several industries. According to ZipRecruiter, an American recruiting Internet agency, since the beginning of the year the number of advertisements for hiring employees in restaurants, cafes and hotels has decreased by 25% compared to the same period last year. The number of announcements from catering companies fell by 40%, and from companies in the aviation industry - by 43%.

The agency notes that during the last cycle of US economic growth, about one fifth of all new jobs have appeared in tourism, recreation and entertainment. “It was these industries, which attracted a large number of new employees, that were now marginalized,” said Julia Pollak, economist at ZipRecruiter.

At that, the same coronavirus epidemic and massive quarantines have led to an increase in demand for labor in other sectors. On Monday, the Amazon online store announced hiring of an additional 100,000 full-time and part-time employees in the United States. The company said that new people are required in warehouses, sorting and distribution centers and in delivery. Amazon notes that the priority of its work now is "prompt delivery of goods to the door of each customer, which is especially important when there are restrictions on people's contacts with each other."

The Internet retailer noted a sharp increase in demand for their services, which resulted in an “unprecedented need for employees for this time of year”.

On Thursday, the largest US private employer, Walmart retail chain, announced additional hiring of 150,000 new employees or, as they are called by the company, “partners”. In addition to retail, experts record an increase in demand for labor in industries and specialties such as goods delivery, transportation services, drivers, and packaging of goods.


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