With the ongoing outbreak of COVID-19 throughout the United States and the world, the national economy has begun to see changes as a result. As employers downsize their workforces and send employees to work from home, students entering the job market may see less opportunity for work in the coming weeks.
The spread of COVID-19 has caused many cities, states and countries to enter a state of emergency and institute area-wide lockdowns. These lockdowns often mean that people aren’t as able to go out and spend money. As they spend less on non-essential things, the businesses supplying them are required to downsize, putting employees on leave and limiting new hires. These changes may make it difficult for students looking for work in the current economic environment to find employment.
On March 28, Oklahoma City entered a shelter-at-home order, and non-essential businesses were ordered to suspend operations until April 16. With this order, many businesses elected to downsize their workforces to save money, laying off or furloughing workers without hiring new ones. Many other cities and states across the US have taken similar measures to combat the spread of COVID-19, causing a dip in the economy across America, including Central Oklahoma.
One indicator of the state of the US economy that is often used is the Dow Jones Industrial Average, an index of 30 large publicly traded companies in the stock market. If the Dow Jones dips, it indicates that these companies are cumulatively losing value, indicating a “drop” in the economy signified by Americans spending less money. The spread of COVID-19 has coincided with a large dip in the Dow Jones, indicating that as the pandemic continues, the economy will worsen as a result.
Steve Agee, dean and professor of economics at Meinders School of Business, said with reduced consumer spending, the economy will suffer.
“Demand by consumers has obviously dropped considerably. And in economic terms, personal consumption expenditures represent about 70% of our Gross Domestic Product, GDP. When you lose this kind of consumption by people, it’s going to have a really negative impact on the economy,” Agee said.
With these worries, a recent stimulus bill will be going into effect with the purpose of encouraging spending and making up for losses within businesses. Many experts are expecting to see a boost in the economy. The $2 trillion package includes a variety of beneficiaries, including large and small businesses.
One group of recipients for financial aid from the package is the American population. Each independent US citizen who has filed their taxes is eligible to receive a stimulus check. If they have filed their 2019 tax returns, that information will be used to calculate the amount received, up to $1200 for single Americans. Americans who haven’t filed their taxes for 2019 will receive an amount based on previous tax returns. Those who don’t make enough to be required to file tax returns can still file their return, and have until July 15 to do so, an extension of the usual April 15 deadline. Some Americans will receive checks under the $1200 maximum, based on their annual income. Any students who have been filed as dependents on their legal guardians’ tax returns will not be eligible to receive the amount.
While the package offers the potential for an improved economy, it will not be creating job opportunities on its own. Students looking for work in the following weeks, while potentially receiving aid through the stimulus package, may still struggle to find employment. Marty Gibson, a studio arts senior, said they feel unprepared to enter the job market in the current economy, and won’t be able to cast as wide of a net as they had planned due to safety concerns.
“I am going to have to look more in my local area if I want to be doing work, because I know it would be more dangerous to be traveling farther,” said Gibson.
Many graduating students, including Gibson, have had to move away from Central Oklahoma as a result of COVID-19, which has significantly altered their job opportunities and plans for post-graduation.
As the economy and job market continue to change, Agee has said graduating students should prioritize staying safe and healthy in the meantime.
“Remain calm. Stay sheltered. Try not to get out and about among the population, because we certainly don’t want any of our students or faculty or staff to contract this virus,” said Agee.
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