The financial aid package that Congress enacted in the spring included a $600-a-week federal jobless benefit and $1,200 checks that went to most adults, in addition to assistance for small businesses. All that money has run out. Without additional federal aid, millions of unemployed Americans likely will lose all their jobless benefits in coming weeks and months, probably forcing them to scale back their spending. And many small companies could go out of business.
In the meantime, new confirmed viral cases in the United States reached an all-time high of more than 86,000 a day, on average, in a sign of the worsening crisis that lies ahead for the winner of this week’s presidential election. By contrast, just two months ago, according to Johns Hopkins University, the seven-day rolling average for confirmed daily new cases was 34,000.
As temperatures fall, restaurants and bars will serve fewer customers outdoors. And many consumers may stay home to avoid infection. Dwindling business could force employers to slash more jobs during the winter.
The data firm Womply found that more businesses are shuttering in the face of a COVID resurgence and a potentially deteriorating economy: 21% of small businesses were closed as November began, it says, up from 20% in October, 19% in September and 17% in August. And sales growth is slowing at the companies that are open.
A series of major corporations have announced layoffs recently. Last week, Exxon Mobil said it was slashing 1,900 jobs from its U.S. workforce. Chevron said it planned to cut a quarter of the employees at its recently acquired Noble Energy, with he pandemic sapping demand for fuel. Charles Schwab announced after completing its purchase of TD Ameritrade that it would cut 1,000 jobs from the combined company.
And Boeing said it would make deeper cuts to its workforce than originally planned. It has been losing money because the viral outbreak has depressed demand for new planes. Boeing expects to end the year with about 130,000 employees, down 30,000 from the start of this year — far more than the 19,000 reduction it had announced three months ago.
Paul Wiseman, The Associated Press
