COLORADO SPRINGS – After high expectations for job growth in August, the month’s hiring report was disappointing, according to doctorate economist Tatiana Bailey. Bailey told FOX21 News that the fact heightened her fears that the factors dragging the economy go beyond the effects of the pandemic.
Bailey, who is also the director of the University of Colorado-Colorado Springs Economic Forum, says the rapid spread of the Delta-COVID-19 variant has increased uncertainty during the recovery effort because “when you have such a major disruption, this is that Recovery “will be in seizures and beginnings.”
“What stalled was spending on services, especially hospitality and retail,” Bailey said.
8.4 million people are still unemployed, 1.7 million jobs have been lost in the hospitality industry since February 2020.
An estimated 42,000 additional jobs in restaurants and drinking establishments were lost last August.
Bailey says those who do not work say 5.6 million people will remain unemployed because they worked for a company that was closed.
“I am very worried about that. I talk to small business owners in the area all the time. Restaurants or retail stores, they all say the same thing – that this was a huge disruption for them and even if they are one [Paycheck Protection Program] Loan, it has expired and it has helped them for a relatively short time. “
Bailey reported that even in the states where the federal government’s supplementary unemployment benefits ceased, employment growth remained similar to the states where payments were maintained.
Bailey says this is proof that there is more to stop people from working than just getting extra money when they are not working.
“Childcare was a pre-pandemic problem, the skill gap was a pre-pandemic problem, a shrinking workforce just because of demographics and people who had fewer children than 10, 20, 30 years ago, that’s another structural problem. So all of these things need to be addressed, ”Bailey explained.
In the week of September 6, the U.S. Department of Labor reported 310,000 first-time jobless claims, a low in the pandemic. The number is still high based on pre-pandemic standards, but with many schools returning after Labor Day across the country, Bailey says it remains hopeful.
“I wouldn’t throw in the towel and say, ‘The sky is falling’. I think we’ll see some better numbers in September, ”she said.