As Labor Market Hits Rock Bottom, Congress Must Ensure Record Joblessness Remains Temporary
May 21, 2020 – America’s Recovery Fund Coalition (ARFC) issued the following statement after an additional 2.4 million jobs were lost in the last week, bringing total unemployment to nearly 39 million.
“After a devastating April for the jobs market, unemployment claims continue to mount as businesses downsize and shutter due to the prolonged effect of COVID-19 across sectors,” said Trevor Hanger, research director for ARFC. “While a leveling out of joblessness may be interpreted as a positive indicator by some, suggesting we have reached rock bottom, we are by no means expecting a V-shaped recovery. Without America’s Recovery Fund, which will provide grant-based relief to businesses and employees, these business closures and layoffs have a very real potential to become permanent.
“The potential long-term economic scarring caused by COVID-19 cannot be overstated. America’s Recovery Fund Coalition urges Congress to heed the warnings of Fed Chair Jerome Powell: we must avoid the possibility of ‘longer run damage to the economy through unnecessary insolvencies on the part of households and businesses and long-term unemployment.’
“We are not out of the woods yet, and an absence of adequate support in the short- and mid-term could unnecessarily lead to additional insolvency on behalf of families and small businesses, and therefore prolong the journey toward America’s economic recovery.”
About America’s Recovery Fund Coalition
America’s Recovery Fund Coalition represents 45 percent of the United States workforce. With more than 100 members across retail, restaurants, theaters, gyms, salons, real estate, the travel industry, financial services, construction, and equipment suppliers, we represent a combined 58 million American workers. We are asking Congress for support to help our businesses, workers, and communities recover. Learn more at www.AmericasRecoveryFund.org.