Transitioning from Hospitality to Health Care Occupations

Pearse Haley and Sarah Miller

No 2020-10, Workforce Currents from Federal Reserve Bank of Atlanta

Abstract: The job losses and unemployment claims caused by the COVID-19 pandemic are unrivaled in modern times. Despite record job growth in June and a decline in unemployment, the U.S. economy remains at great risk. Although many furloughed workers have returned to their jobs, millions of workers have been laid off permanently. Many of the regained jobs were in industry sectors most affected by the initial shutdown, such as bars and restaurants and hospitality and tourism. Since the U.S. Department of Labor's June Employment Situation Summary was released, however, COVID-19 cases have spiked in many states, and the United States as a whole has seen record numbers of new cases. Local and state governments have slowed or paused the reopening of businesses in response to the surge in cases, sending many workers in these recently recovering industries back home. The threat of increased job losses and unemployment claims due to industry shutdowns is compounded by the expiration of CARES Act–extended unemployment relief of $600 per week on July 31, pending an extension by Congress, as well as the complete or near exhaustion of Paycheck Protection Program loans by many employers. Recovery forecasts have worsened in response to this uncertainty, with the service industry facing the gloomiest outlook. Job losses in the service industry have disproportionately affected Black, Asian, and Hispanic workers as well as women, particularly single mothers and low-income workers. These workers are more likely to earn low wages and less likely to receive health insurance or paid leave from their employers. They often serve as the sole or primary earner for their households. This disproportionate impact, combined with continued uncertainty surrounding economic recovery and extension of government relief, have placed service industry workers in a precarious position. Typically seen as less skilled, service workers lack the time and resources necessary to enter retraining and reskilling programs in pursuit of new employment.

Keywords: COVID-19 (search for similar items in EconPapers)
Pages: 11
Date: 2020-08-28
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Persistent link: https://EconPapers.repec.org/RePEc:fip:a00034:99353

DOI: 10.29338/wc2020-10

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