The Covid-19 pandemic has spiralled the world into an economic downturn. With almost a year into being quarantined, (trying to) follow social distancing protocols, and the world going digital in almost every aspect, many establishments – both big and small, have experienced the economic backlash brought about by the pandemic. However, with vaccines being developed and administered in select countries – is this the end of the economic slump and the rise of the economy?
Statistics on restaurant seating from Open Table and airline passengers screened in the United States show that numbers are at about 40% below compared to 2019 data. While this may not be exactly good news, there is still that glimmer of hope that numbers are starting to level out instead of declining. This implies that even though data is significantly lower than 2019, there is still a steady stream of consumers in restaurants and airline passengers.
Unemployment statistics in the United States also show a significant increase in individuals who are filing for unemployment due to the pandemic. In fact, the country lost around 9 million jobs as compared to 2019 statistics. The Department of Labour also saw a surge in unemployment insurance claims during the third week of January 2021. This is largely because government agencies have extended pandemic emergency programs that allow more people to be supported if they have lost their job because of the pandemic.
Oxford Economics Recovery Index
The Oxford Economic Recovery Index shows the country’s economic, financial, and health index. Statistics show that it rose during October of 2020 and fell a little bit flat during the turn of the new year. However, the index is slowly rising now that vaccines are being administered, and health and safety protocols are starting to ease because of the vaccines.
US Infection Rates
Once considered the major hub of Covid-19 infection, the United States is now reaching the end of this very dark tunnel as statistics show that coronavirus transmission is slowly decreasing across all states and is nearing a 100% full recovery.
What is Next?
The pandemic has certainly taught humanity a thing or two about finances and saving money for a rainy day. With the estimated $1.6 trillion in families’ total savings because of limitations in their spending activities, reports say that they are waiting for the perfect time to go all out into a spending spree. In December, when news about the vaccine being available by early January of 2021 started spreading, there was a sudden surge in activity related to wedding planning, according to Yelp.
According to a Conference Board research, there were definitely a number of ways US citizens could save money. According to statistics, nearly two-thirds of the respondents answered that they did not go on a vacation for more than six months. Around 30% of the respondents also mentioned that they do not feel safe eating outside in a restaurant. By staying indoors and keeping safe, they have saved money they would have otherwise spent eating out or on vacations.