A wave of more layoffs will happen as soon as the Paycheck Protection quiet period ends.
After June 30, companies that took PPP money are free to fire people without repercussion.
After June 30, companies that took PPP money are free to fire people without repercussion.
I'm waiting for a very large shoe to drop in a few months. How big will depend on whether consumers feel comfortable about their jobs+health.
This is a very frightening sentence because obviously not many consumers feel comfortable about either right now.
The fed and congress have been very on point with the stimulus response speed this time around and so I think we’ve seen the bottom of the market through this. And most investors are voting with their dollars that this is true.
(I’m just parroting Ray Dalio.)
I think a lot of people haven't realized that for many workers, being furloughed or having your hours reduced can result in an effective raise under the current Coronavirus aid package.
A friend's company furloughed everyone on Fridays. She was disappointed at first, until she realized this hours reduction qualified her for the $600/week Coronavirus aid. Now she's making more money, working less, and enjoying 3-day weekends.
Now everyone at her company is trying to convince management to continue the Friday furlough until the $600/week stimulus runs out.
This is why I don't trust the unemployment claim numbers until after July. Too many perverse incentives to increase the number of claims.
No new business was able to be drummed up and now massive lay offs of 90% of the US offices starting June 15 with a paycheck severance so effectively June 30. The EU offices have faired better with more work, and few layoffs of only receptionists.
All and all it’s bleak for the events industry. I’m sure that a lot of convention centers, caterers, AV rental houses, independent producers, PAs, will all be on the dole and you’ll see a huge spike in unemployment on Aug 1.