Long Term Unemployment Effects

We’re past the six month mark since the beginning of the pandemic, which means that many unemployed workers have been out of work for more than 26 weeks. These people are now defined as being long term unemployed.
Many who were temporarily laid off, have now been permanently fired. This is significant because it’s normally at the six month mark when benefits run out, and workers begin digging into their savings to pay for health insurance, and other related items.
Economists are predicting that in early 2021, 4.5 million people will join the ranks of the long term unemployed. This will still be fewer than the 6.5 million at the height of The Great Depression. but it’s still a frightening number.
The question becomes whether or not many industries will be able to rebound either short term, or at all. Restaurants continue to close, live event venues remain shuttered, and the travel industry doesn’t have a pulse.
What are those 4.5 million long term unemployed people going to do? No one seems to be asking this question.
If you are a born and bred Chicagoan as I am, you can remember many of the now shuttered industries that made us the capital of the Midwest. Candy, other prepared foods, and manufacturing are just a few. All of those displaced workers had to find other means of supporting their families.
Many of those jobs were replaced by tourism twenty years ago. The question is what’s next? Whatever it is, there’s opportunity. Those people are going to need to be trained and employed. Something needs to be done before those people leave Chicago to find work elsewhere.
Let me leave you with this.
Second City is now up for sale, and the Ruth Chris Steakhouse is permanently closing. As many of our institutions either close or are being sold, what will Chicago look like in a year?
So much of being a Chicagoan is defined by our culture. Without it, we’d become Akron. Is this where we’re headed? Without Lawry’s, Gino’s East, or even Fat Willy’s, what’s next.
Don’t lose hope. Last Saturday night, Julie and I went to a cute little French bistro in Lincoln Square named Chez Simo, and it was packed. We then grabbed the first set at the re-opened Green Mill. We were glad that we got in because half an hour later, there was a line. Dave Jermillo, the owner and an old friend, couldn’t have been happier.
I keep telling everyone to hang on. Don’t give into fear. Bad economies can be good for businesses. Your competitors are going to close, and their customers will be up for grabs.
Let’s make sure that you are the one doing the grabbing, and know that we are here to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
Accounting Solutions Ltd.
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