E Serious Structural Problems Will Remain Even After The US Economy Recovers From The Pandemic

Serious Structural Problems Will Remain Even After the US Economy Recovers from The Pandemic. Among the Worst Is the Huge Number Of Women Who Have Dropped Out Of The Labour Force                                                                                          

Recent projections based on economic scenarios modeled by McKinsey and Oxford Economics estimate that employment for women may not recover to pre-pandemic levels until 2024—two full years after the recovery for men….Female workforce participation has already dropped to 57%—the lowest level since 1988, according to the National Women’s Law Center.” (Fortune, Feb. 13, 2021)

The US economy was experiencing major structural challenges even before the pandemic began, but of course, the unique nature of the supply side pandemic recession has made matters much worse.

As is well known, the service industries which have been ravaged in the pandemic (e.g., hospitality, travel, etc.,) will find it exceedingly difficult to recover compared to the goods-producing sectors of the economy.

Many small establishments have already gone out of business, and re-entry will not be obviously easy. There clearly will be a time lag issue, normalcy is really in the distant future, and of course, there is the indebtedness of the individuals and firms to be managed.

Then there is also the issue of the number of zombie companies which will continue to require governments to support them.

Even before the pandemic emerged working from home was becoming a growing phenomenon.

But the pandemic has served as an incredibly important catalyst for this new direction. Outsourcing work to the home in a major way not only affects the way firms adapt but also could seriously change the outlook for the real estate market.

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