Many sectors, air transport, tourism, hotels, catering, have seen their activity shrink like pain.
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The retail giants, Walmart and Amazon at the head, announced massive hiring, an unexpected consequence of the coronavirus pandemic which caused the consumer rush to the supermarkets while the small businesses lay off workers with all their strength.
However, these hirings will not be enough to compensate for the sinking of the American job market.
Numerous sectors, air transport, tourism, hotels, catering, have seen their activity shrink like frenzy in recent weeks due to the draconian measures taken to stem the new coronavirus which is spreading in the United States.
And the world’s largest economy plunged into recession.
Departing from China in late 2019, the coronavirus infected more than 14,630 people and killed 210 people in the country, according to the latest projections from Johns Hopkins University.
This pandemic has provoked rushed movements all over the world towards supermarkets to stock up on foodstuffs for fear of shortages. The United States has not escaped this panic.
As a result, the US retail chain Walmart, the largest employer in the United States, announced on Thursday that it would hire 150,000 people to meet the increased demand.
The group will also pay $ 365 million in bonuses to hourly paid workers for their “hard work” during “this unprecedented national health crisis”.
It is also a way to retain these workers, who hold the most precarious jobs, and to ensure that the stores can continue a normal activity.
Rodney McMullen, CEO of the Kroger supermarket chain, which owns many brands including Fred Meijer and Harris Teeter, said the group – the largest supermarket chain in the United States – currently has 10,000 vacancies. .
“In the past week, we have hired more than 2,000 people,” he said on NPR radio, referring to “a surge in demand” requiring more hands.
In addition, it is essential to take over from hard-working teams, to allow them to work a reasonable number of hours and to take rest days “because the environment is very stressful,” he said. he recognized.
The boss also explained that he worked in partnership with various hotels and restaurants, which were forced to layoffs.
A drop of water
“We are very fortunate to be able to bring in people and they are very talented people,” said McMullen. “And it really helps us to continue to meet the demands and expectations of our customers,” he continued.
Although significant, these hires are a drop in the ocean of layoffs.
Official data indicates an unprecedented increase in layoffs.
“The next report on unemployment benefit claims for the week of March 15-21 is expected to report some 2.5 million claims,” compared to 281,000 claims the previous week (+70,000), Goldman Sachs predicts in a note.
It would be the highest level ever recorded.
“Data from a wide range of industries also suggests an unprecedented drop in income in many industries. Consumer spending on sports and entertainment, hotels, restaurants and public transport in particular has already fallen considerably, “says Goldman Sachs.
Meanwhile, online retail giant Amazon is recruiting 100,000 people.
“I think these announcements should be taken with caution,” said Gregory Daco, chief economist at Oxford Economics, noting that national containment has become inevitable. Donald Trump said he has not yet considered this possibility.
“And even if people order and consume a little more at home, the consumption of services will be considerably reduced,” adds Daco.
He expects more than four million unemployment benefit claims this week.
At this rate, the unemployment rate could exceed 20% in April, he said.
Many economists predict a contraction of more than 10% of the gross domestic product.
“We expect a 13% contraction, but the reality could be much worse,” concludes Gregory Daco.
This is what the Trump administration, which has proposed a $ 1,000 billion stimulus package, wants to avoid at all costs. It is currently before the Senate.
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