The report indicates the pessimism that exists among business leaders regarding the rate of recovery that the country will have
The workers were reluctant to return to their workplaces for fear of getting COVID-19.
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Mass unemployment, which exceeds 41 million people who have applied for coronavirus unemployment insurance, is being aggravated because citizens do not want to return to work, the new Federal Reserve report summarizing the country’s economy said on Wednesday.
The unemployment rate in April registered a record figure of 14.7% that had not been recorded since the Second World War and more than 20.5 million layoffs during the month, workers are reluctant to return to their jobs for different reasons, says the report of the “Beige Book”.
The document also mentions that entrepreneurs have a pessimistic perspective on the recovery that the United States economy will have.
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Workers face new challenges in returning to their jobs, including fear of contracting COVID-19, limited access to childcare, and the benefits that unemployment insurance is providing for workers.
These are almost 41 million people who have applied for unemployment insurance since the health pandemic was decreed in mid-March. According to the Department of Labor, more than 25 million people are receiving insurance in the last two weeks.
In addition, the government has been granting an additional $ 600 payment to the economic stimulus support program as well as business loans to be able to retain workers for eight weeks through the Wage Check Protection Program (PPP).
The document highlights that the PPT is helping businesses avoid the dismissal of their workers, despite the fact that the employment rate continues to fall, especially in the retail, service and hospitality sectors.
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Fear of the future
The Fed report says that despite hope for a business recovery, the outlook is uncertain and pessimistic. In the case of the agricultural or energy industry, they expect to have longer falls due to the collapse of energy prices and the fall in meat production in the largest packing houses in the country due to COVID-19 infections among their workers.
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The real estate sector is taking a big hit due to the collapse of sales and the lack of inventory and the restrictions that the country has experienced in recent weeks.
Property owners noted that large numbers of tenants failed to meet their rent payments or had to be deferred due to the crisis.
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