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Things have a way of changing on a dime. What might have been a very different look at a potential recession just a month ago has become more critical. Is the next recession waiting in the wings? Not only is it waiting, but it’s inevitable in the wake of the COVID-19 crisis. That doesn’t mean you need to panic, but it does mean to be educated and prepared. Here’s what the economic community says you need to know.
The Event Industry
The leading indicator in this specific crisis was the event industry. Initially, as the data began rolling out, large gatherings were looked at as a problem, and many immediate events canceled or postponed. As we moved forward and the expert recommendations about gatherings got smaller and smaller by the day, the event industry began laying off employees. We don’t yet know when this will go back to any semblance of normal. Event companies need to figure out the next phase, and no one’s quite sure what that will look like ahead.
V-Shaped Recession
While the economic outlook is changing by the day, current experts predict a V-shaped recession. In this model, the economy will suffer a considerable drop, followed by a steady recovery. The question today is if this will be brief since there are so many unknown factors. In 1953, the U.S. economy experienced a V-shaped recession when the federal reserve raised interest rates because of expected inflation. But growth did begin slowly, and the economy recovered over time.
Service Sector
Today, we’re seeing a divide among the service sector. There are essential roles, including grocery stores and pharmacies, that must stay open, and workers are needed the most. But other service industry jobs, such as bartenders or wait staff, are being laid off indefinitely. Where they can, some restaurants are offering take out or delivery, but that isn’t possible across the board. These service–sector employees may be looking for other opportunities to help make ends meet.
Consumer and Business Confidence
What’s really at stake right now across all industries is consumer and business confidence. Whatever the case, we know that we will do all we can to help employers stay staffed and ready and find talent to fill in the gaps. We, like you, are continuing to watch the economic reports to see what’s next and respond in the best way possible for everyone.
What Can We Do to Help?
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