search
Sections List
American Journal News

Will the job market ever be the same again?

Demand for waiters, cashiers, front-desk clerks, and ticket takers may never regain its previous highs.

By Associated Press - March 13, 2021
Share
Laid-off Hilton hotel worker

Esther Montanez’s housecleaning job at the Hilton Back Bay in Boston was a lifeline for her, a 31-year-old single mother with a 5-year-old son.

The pay was steady and solid — enough to pay her bills and still have money left over to sock away for a savings account for her child. Montanez liked her co-workers and felt pride in her work.

But when the viral pandemic slammed violently into the U.S. economy a year ago, igniting a devastating recession, it swept away her job, along with many tens of millions of others. Since then, in desperation, Montanez has siphoned away money from her son’s savings to help meet expenses. At Christmas, she turned to charities to provide presents for him. For now, she’s getting by on unemployment aid and, for the first time, has applied for food stamps.

“The truth is, I want my job back,” said Montanez, who has banded with her former colleagues and worked through their union to press the hotel to reinstate their jobs.

Getting it back could prove a struggle for her, along with millions of other unemployed people around the world. Even as viral vaccines increasingly promise a return to something close to normal life, the coronavirus seems sure to leave permanent scars on the job market. At least 30% of the U.S. jobs lost to the pandemic aren’t expected to come back — a sizable proportion of them at employers that require face-to-face contact with consumers: hotels, restaurants, retailers, entertainment venues. United Here, Montanez’s union, says 75% of the 300,000 hospitality workers it represents remain out of work.

The threat to workers in those occupations, many of them low-wage earners, marks a sharp reversal from the 2008-2009 Great Recession, when middle- and higher-wage construction, factory, office, and financial services workers bore the brunt of job losses.

No one knows exactly what the job market will look like when the virus finally ends its rampage.

Will consumers feel confident enough to return in significant numbers to restaurants, bars, movie theaters, and shops, allowing those decimated businesses to employ as many people as they did before?

How much will white-collar professionals continue to work from home, leaving downtown business districts all but empty during the week?

Will business travel fully rebound now that companies have seen the ease with which co-workers can collaborate on video platforms at far less cost?

“Jobs are changing — industries are changing,” said Loretta Penn, chair of the Virginia Ready Initiative, which helps workers develop new skills and find new jobs. “We’re creating a new normal every day.”

The habits that people have grown accustomed to in the pandemic — working, shopping, eating, and enjoying entertainment from home — could prove permanent for many. Though these trends predated the virus, the pandemic accelerated them. Depending on how widely such habits stick, demand for waiters, cashiers, front-desk clerks, and ticket takers may never regain its previous highs.

The consultancy McKinsey & Co. estimates that the United States will lose 4.3 million jobs in customer and food service in the next decade.

In a study, José María Barrero of Mexico’s ITAM Business School, Nick Bloom of Stanford University, and Steven Davis of the University of Chicago concluded that 32% to 42% of COVID-induced layoffs will be permanent.

The U.S. Labor Department, too, has tried to estimate the pandemic’s likely impact on the job market. Before taking the pandemic into account, the department last year projected that U.S. jobs would grow 3.7% between 2019 and 2029.

Last month, it estimated that if the outbreak’s lasting economic effects were limited mainly to increased work from home, job growth over the 10 years would slow to 2.9%.

But if the pandemic exerts a deeper, longer-lasting impact — with many consumers going less frequently to restaurants, movie theaters, and shopping centers — job growth would slow to just 1.9%, the department predicted. In that worst-case scenario, the department estimated, employment would tumble 13% for waiters and waitresses, 14% for bartenders, 16% for fast food cooks, and 22% for hotel desk clerks.

The coronavirus recession has been especially cruel, victimizing people at the bottom of the pay scale. Lael Brainard, one of the Federal Reserve’s governors, said last month that the poorest 25% of American workers were facing “Depression-era rates of unemployment of around 23%” in mid-January — nearly quadruple the national jobless rate.

The Fed also reported last month that employment in the lowest-paid jobs was running 20% below pre-pandemic levels. For the highest-paying jobs, by contrast, the shortfall was just 5%.

Services workers had long been thought to be safe from the threats that menaced factory employment: foreign competition and automation. But more and more, as employers have sought to save money in a time of uncertainty and to promote social distancing in the workplace, machines are reaching beyond the factory floor and into retail, restaurants, and hotels.

Tamura Jamison, for instance, came back to a changed job when she was recalled to work in June as a front desk agent at the Paris Las Vegas Hotel & Casino, owned by Caesars Entertainment. Her hours were cut from 40 to about 32 a week, resulting in a pay cut of about $700 a month.

Just 26 of 45 workers on her team were brought back. Existing self-service kiosks used to be optional for guests checking in. No longer. Now, agents must direct guests to the kiosks and intervene only if needed. That means fewer commissions for room upgrades; guests can request them on their own.

As a union shop steward, Jamison knows that her missing colleagues won’t likely be recalled.

“At this point,” she said, “they have to move on with their lives.”

Jamison wonders whether the front desk operation will eventually be eliminated altogether, the jobs lost to automation. Guests, she notes, will soon have keys on their smartphones, allowing them to go directly to their rooms.

“This is the start of a new Vegas,” Jamison said. “The front desk doesn’t really have to be there. There are ways to eliminate our jobs.”

In a study out last month, Stefania Albanesi of the University of Pittsburgh and Jiyeon Kim of the Korea Development Institute warned that in a world still fearful of the virus or of other health threats, many companies could replace employees with machines rather than redesign workspaces to facilitate social distancing and reduce the threat of infection.

The service occupations that have absorbed the biggest job losses, they say, “have high susceptibility to automation.” That “raises the prospect that as the economy recovers, at least some of the jobs lost may not be reinstated.”

Few places have been hurt more ruinously by the pandemic than Las Vegas, whose economy is powered by out-of-town visitors and live entertainment. Until 12 months ago, Sharon Beza was among 283,000 workers in the city’s tourism and hospitality field. She had worked as a cocktail waitress at Eastside Cannery hotel-casino from the time it opened in 2008 to the day she was furloughed a year ago. Over the summer, her job was eliminated.

Now a part-time cashier at an Albertsons grocery store, Beza is still seeking full-time work in the restaurant industry, which employed her for 37 years. She’s holding out hope that Las Vegas will rebound and tourists will return to restaurants, hotels, and casinos. But it may be impossible, she knows, for laid-off workers like her to land jobs that offer the kinds of solid wages, tips, and benefits they used to enjoy.

In Europe, government jobs programs have prevented a devastating spike in unemployment. Unemployment in January was 8.1%, up only modestly from 7.4% a year earlier. Yet an economic reckoning has begun, with companies in the worst-hit sectors envisioning years of reduced demand.

Consider commercial airlines. Lufthansa’s workforce shrank from 138,000 to 110,000 in 2020. British Airways plans to cut 12,000 jobs from its 42,000-strong workforce. UK-based regional airline Flybe took 2,000 jobs with it when it collapsed a year ago.

Germany’s hotel and restaurant association says that despite government support to help maintain payrolls, employment sank from 2.45 million pre-pandemic to 2.09 million. Holger Schaefer, a labor economist at the German Economic Institute in Cologne, suggested that behavioral changes — more digital meetings, for example, and less business travel — would result in permanent job losses in some companies.

By contrast, some other sectors of the economy should benefit from pent-up demand once the virus is defeated. Schaefer is optimistic about restaurants, for one.

“There is a fundamental demand for such services,” he said. “I can’t imagine that when everyone is vaccinated and it’s safe, that there will still be problems in that area.”

Around the world in the Chinese city of Xuzhou, northwest of Shanghai, Guan Li, a convenience store owner, said he hired four out-of-work relatives but had to lay them off after sales fell by half. Now, he and his wife run the shop themselves.

“People just don’t want to buy,” he said. Guan, who is close to 60, and his wife plan to retire because the shop’s income may no longer cover their costs. Owners of two similar shops nearby also plan to close, he said.

In Egypt, Mohammed Gamal used to earn a decent living working six days a week at a café in Giza, twin city of Cairo. But pandemic restrictions and dwindling business shrank his workweek and slashed his income by more than half. It didn’t help when the government banned “sheesha,” the hookah water pipe that’s popular across the Middle East and is a major moneymaker for cafes.

In mid-2020, he sent his wife and two children back to his parents’ house in Beni Mazar, south of Cairo. Now, he shares a room with a friend to save on rent.

“I just work three days a week, and this is not enough even for a single person,” said Gamal, 31.

In Mexico City, Gerardo González, wearing a suit, a black mask, and a plastic face shield, waited recently on the sidewalk outside the delivery service Didi. He had hoped to find work a month after he lost his job at a bakery where he did cleaning and displayed merchandise.

He’s applied for jobs at five companies.

“I can’t get anything,” said González, 51, who supports his wife and two young children. To meet his family’s expenses, he’s burned through his savings.

“We hope that with the vaccine, things will start going back to normal,” he said.

Melinda Harmon lost a job she loved as a bartender at Milwaukee’s Fiserv Forum last year. First, she found work as a health care aide for $9.25 an hour. Even after receiving a raise to $10, she struggled to support her two sons. Frustrated, she resigned and took on a new job as a security guard for $12 an hour. She’s been switching off lights to save money for electricity and has had to delay haircuts for her two beloved Pomeranians.

Yet she remains optimistic that the Fiserv Forum will reopen and that she will one day be mixing drinks for Bucks fans again.

“I do believe things will go back,” said Harmon, 39.

In New York, Bill Zanker is also envisioning a comeback after being forced to close his luxury gym, Grit Bxng. He’s raising money to launch an at-home fitness business in the fall, which will mean eventually hiring to support an online business, including customer service and supply specialists.

Still, Zanker is hopeful that his Manhattan gym, known for its cocktail bar and backed by billionaire Tony Robbins and others, will eventually come roaring back. Before the pandemic forced its closure, Zanker said, classes would be booked for the entire week within two hours each Monday morning. With the bar typically packed, he had been on the verge of opening a second location.

“There is so much pent-up demand,” Zanker said. “People after class are going to want to hang out and socialize. It’s like after Prohibition: Party like there’s no tomorrow.”

However things shake out, the pandemic disruption to the job market will likely require millions of workers to find new careers. Reviewing the job outlook in eight major economies, McKinsey estimated that 100 million workers — 1 in 16 — will need to change occupations by 2030. In the United States, McKinsey concluded, workers who will need retraining are most likely to have a lost low-income job and to be Black, Hispanic, or female.

“You can take people in these unskilled positions and teach them,” said Susan Lund, an author of the consultancy’s report on the jobs of the future. But in the United States, she said, “the problem is, we have not scaled it up. We do not a have a national program to do it.”

The United States spends a fraction of what other rich countries do on programs that are designed to help workers make career transitions. And a bewildering web of employment and training programs often leaves workers confused. The programs tend to focus on helping laid-off factory workers — not the unemployed chefs and sales clerks who are likely to be most in need in the pandemic’s aftermath.

“We make people jump through insane hoops just to get advice on getting a new job,” said Annelies Goger, who studies training programs as a fellow at the Brookings Institution. “We make it extremely challenging.”

In a paper last year, David Autor and Elisabeth Reynolds of the Massachusetts Institute of Technology warned that dwindling demand for low-paid workers without college degrees won’t coincide with job opportunities for “these same workers in middle-paid jobs.”

“Those displaced may suffer significant hardship as they seek new work, potentially in occupations where they have no experience or training,” they wrote.


Read More
Biden calls for expanded child tax credit, taxes on wealthy in $7.2 trillion budget plan

Biden calls for expanded child tax credit, taxes on wealthy in $7.2 trillion budget plan

By Jennifer Shutt, States Newsroom - March 11, 2024
December jobs report: Wages up, hiring steady as job market ends year strong

December jobs report: Wages up, hiring steady as job market ends year strong

By Casey Quinlan - January 05, 2024
Biden’s infrastructure law is boosting Nevada’s economy. Sam Brown opposed it.

Biden’s infrastructure law is boosting Nevada’s economy. Sam Brown opposed it.

By Jesse Valentine - November 15, 2023
Biden infrastructure law helps Pennsylvania’s small manufacturers

Biden infrastructure law helps Pennsylvania’s small manufacturers

By Oliver Willis - October 20, 2023
GOP senators try to stop EPA rule projected to save consumers millions of dollars

GOP senators try to stop EPA rule projected to save consumers millions of dollars

By Oliver Willis - October 20, 2023
Democratic bill would increase housing access for formerly incarcerated Michigan residents

Democratic bill would increase housing access for formerly incarcerated Michigan residents

By Alyssa Burr - October 18, 2023
AJ News
Latest
GOP Rep. Zach Nunn suggests laws against hate crime aren’t needed

GOP Rep. Zach Nunn suggests laws against hate crime aren’t needed

By Jesse Valentine - April 15, 2024
GOP Senate candidate Hung Cao blames racial equity for Baltimore bridge tragedy

GOP Senate candidate Hung Cao blames racial equity for Baltimore bridge tragedy

By Jesse Valentine - March 29, 2024
GOP Rep. Jennifer Kiggans donates thousands to far-right extremists

GOP Rep. Jennifer Kiggans donates thousands to far-right extremists

By Jesse Valentine - March 08, 2024
Ohio senate candidate Bernie Moreno: “Absolute pro-life no exceptions.”

Ohio senate candidate Bernie Moreno: “Absolute pro-life no exceptions.”

By Jesse Valentine - March 07, 2024
Anti-China Republicans pocket thousands from Chinese owned conglomerate

Anti-China Republicans pocket thousands from Chinese owned conglomerate

By Jesse Valentine - March 04, 2024
Republican Eric Hovde makes inconsistent statements about family history

Republican Eric Hovde makes inconsistent statements about family history

By Jesse Valentine - February 26, 2024
Republican David McCormick invests millions in website that platforms Holocaust denial

Republican David McCormick invests millions in website that platforms Holocaust denial

By Jesse Valentine - February 09, 2024
Lawmakers will again take up bills expanding, tightening gun laws

Lawmakers will again take up bills expanding, tightening gun laws

By Annmarie Timmins, New Hampshire Bulletin - January 31, 2024
UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

By Ashley Murray, States Newsroom - January 24, 2024
Republicans Sam Brown and Jeff Gunter sling mud in Nevada senate primary

Republicans Sam Brown and Jeff Gunter sling mud in Nevada senate primary

By Jesse Valentine - January 17, 2024
A Young Texas Woman Almost Died Due To The Texas Abortion Bans – Now She’s Battling To Save Other Women

A Young Texas Woman Almost Died Due To The Texas Abortion Bans – Now She’s Battling To Save Other Women

By Bonnie Fuller - January 10, 2024
Health care legislation preview: Maryland advocates want to focus on access, patients in 2024 session

Health care legislation preview: Maryland advocates want to focus on access, patients in 2024 session

By Danielle J. Brown, Maryland Matters - January 08, 2024
How GOP senate hopefuls try to excuse the  January 6 insurrection

How GOP senate hopefuls try to excuse the  January 6 insurrection

By Jesse Valentine - January 05, 2024
NH lawmakers will be taking up major voting bills this year. Here are some to watch for.

NH lawmakers will be taking up major voting bills this year. Here are some to watch for.

By Ethan DeWitt, New Hampshire Bulletin - January 04, 2024
Republican US Senate candidates want to make Trump’s tax cuts permanent 

Republican US Senate candidates want to make Trump’s tax cuts permanent 

By Jesse Valentine - December 22, 2023
Rand Paul went all in on the Kentucky governor’s race. It didn’t work.

Rand Paul went all in on the Kentucky governor’s race. It didn’t work.

By - December 15, 2023
Texas governor and attorney general do little to curb state’s chemical plant crisis

Texas governor and attorney general do little to curb state’s chemical plant crisis

By Jesse Valentine - December 08, 2023
Likely GOP Senate candidate Eric Hovde proposed tax hike for poorer workers and retirees

Likely GOP Senate candidate Eric Hovde proposed tax hike for poorer workers and retirees

By Jesse Valentine - December 07, 2023
Whitmer signs specific criminal penalties for assaulting health care workers into law

Whitmer signs specific criminal penalties for assaulting health care workers into law

By Anna Liz Nichols, Michigan Advance - December 06, 2023
105 Republicans voted to expel Santos for things Trump has also done

105 Republicans voted to expel Santos for things Trump has also done

By Jesse Valentine - December 05, 2023
For Texas Sen. Ted Cruz, another Trump term is another chance to kill Obamacare

For Texas Sen. Ted Cruz, another Trump term is another chance to kill Obamacare

By Jesse Valentine - December 04, 2023
Florida Sen. Rick Scott backs Donald Trump in revived push to repeal Obamacare

Florida Sen. Rick Scott backs Donald Trump in revived push to repeal Obamacare

By Jesse Valentine - November 30, 2023
Tate Reeves took donations from power company that hiked customer rates

Tate Reeves took donations from power company that hiked customer rates

By Jesse Valentine - November 06, 2023
Daniel Cameron ran on depoliticizing the Kentucky AG’s office. He made it more political.

Daniel Cameron ran on depoliticizing the Kentucky AG’s office. He made it more political.

By Jesse Valentine - November 03, 2023
Republican operatives sound every alarm on current trajectory of 2023 governor’s race

Republican operatives sound every alarm on current trajectory of 2023 governor’s race

By Adam Ganucheau, Mississippi Today - October 24, 2023
 Direct mailers distort California Democrat Will Rollins’ record 

 Direct mailers distort California Democrat Will Rollins’ record 

By Jesse Valentine - April 25, 2024
More than half of Republican Jay Ashcroft’s funding comes from outside Missouri

More than half of Republican Jay Ashcroft’s funding comes from outside Missouri

By Jesse Valentine - April 25, 2024
Assisted living home lawsuit, citations add to controversy over Hovde’s nursing home remarks

Assisted living home lawsuit, citations add to controversy over Hovde’s nursing home remarks

By Erik Gunn, Wisconsin Examiner - April 24, 2024
Ohio doctors fear effects of emergency abortion care case set to go before U.S. Supreme Court

Ohio doctors fear effects of emergency abortion care case set to go before U.S. Supreme Court

By Susan Tebben, Ohio Capital Journal - April 23, 2024
President Biden visits Prince William park to talk solar, youth involvement on Earth Day

President Biden visits Prince William park to talk solar, youth involvement on Earth Day

By Charlie Paullin, Virginia Mercury - April 23, 2024
Biden on abortion rights: President expects to give speech Tuesday on new Florida 6-week ban

Biden on abortion rights: President expects to give speech Tuesday on new Florida 6-week ban

By Mitch Perry, Florida Phoenix - April 22, 2024