Long Beach, California 2020-11-19 16:53:53 –
Residents of low-income Long Beach are far worse than their high-income neighbors in their continued economic recovery from the coronavirus recession.
This was one of the key points of the Long Beach Quarterly Economic Forum held by the authorities on Thursday morning, November 19th.
Seiji Steimetz, chairman of the Faculty of Economics at California State University Long Beach, said in a forum that Long Beach appears to be on a slow recovery path.
The city’s unemployment rate in September was 15.7%, lower than the peak of this year’s long beach, 21% in May. But that number is far higher than the 4.6% unemployment rate that Long Beach saw in January.
But Steimets said these numbers don’t give a complete picture of fallout from the recession. He said it was because both Long Beach and Los Angeles County were in the midst of a “K-shaped” recovery.
Since the beginning of the pandemic-induced shutdown, low-income workers in LA County have been disproportionately affected by unemployment, according to data presented by Opportunity Insights at Harvard University.
During the worst unemployment period in April, about 33% of Los Angeles County residents’ jobs under $ 27,000 a year disappeared, but only about 16% of residents over $ 60,000 a year lost their jobs. ..
And as of September 30, photos of low-income earners didn’t look much better than in April.There was still 29% less work than when the coronavirus first hit the United States
But most of the high-paying jobs have bounced back. I had only 4% less work than in January.
“These are the upper and lower legs of the K-shaped recovery, which have very different effects on very different income groups,” Steimetz said.
The impact is also seen in local data, he said. Comparing the number of unemployment claims filed after January by zip code to the working population of those zip codes, neighbors like downtown and North Long Beach hit far worse than long workers. It is clear that you are receiving. East side of the beach.
“The most affected area of this pandemic is the low-income areas of Long Beach,” he said.
Steimets said the recovery would look similar to the local situation as the industry was hit hardest. The tourism, leisure and service industries, which employ many of the city’s low-income workers, are all declining. Meanwhile, other industries such as finance, construction and healthcare have been able to remain more stable.
According to Steimets, one exception to the trend of high unemployment in the service industry is in the bar. According to Steimets, the number of local jobs available at the bar has actually increased by 162% since the coronavirus hit.
Steimets said it was probably due to the way the bar had to evolve to stay open. Today, bars need to serve food in an open state, forcing many to innovate.
He added that initiatives such as Long Beach’s Open Street program allowed the bar to expand to sidewalks and streets and continue to serve its customers safely.
“There was this pivot, which seems to have led to a net increase in employment,” Steimetz said.
Steimets said the main point from the data so far is that it can have a significant impact on the industry’s ability to survive a pandemic, based on government policies and programs.
However, these measures are still only useful in the short term. In order for the economy to reach its full potential as quickly as possible (which can still take years), Steimetz urges the public to follow health protocols to prevent further spread of the coronavirus. I did.
“Let’s not undo our recovery,” he said. “We have seen how serious the effects of shutdown are. We have seen how gradual and cautious the recovery is.
“You have to dig a hole and climb from there again without going back,” Steimets added. “So, for our economic and physical health, wear a mask and practice social distance.”