The Tennessee Department of Labor reported Wednesday that over 12,000 new unemployment claims were filed last week, a 48% increase from the week before. Tennessee has been averaging above 15,000 per week since the start of 2021.
The number of continued unemployment claims in Tennessee was just above 48,000...compared to under 20,000 this same time last year.
What does this tell us?
It tells us that the ECONOMIC impact from the pandemic is still far from over. Thousands of Tennessee families are still struggling to find employment.
Others are being laid off or let go due to (a) businesses continuing to face economic difficulties or (b) businesses utilizing new techniques that require fewer employees. Both are the result of the pandemic, creating a shift away from traditional business methods.
McKinsey & Company, a globally recognized management consultant firm, released a report this week about how the pandemic has forever changed business methods. From their report, "The pandemic accelerated existing trends in remote work, e-commerce, and automation, with up to 25 percent more workers than previously estimated potentially needing to switch occupations.
Fewer workers will be going to an office. A survey of nearly 300 executives by McKinsey found that on average, they plan to reduce office space by 30 percent. Remote jobs will become the norm faster than ever expected. A 30% decrease dramatically affects multiple other associated businesses: restaurants, parking, transportation, and other establishments that counted on those bodies. The domino effect on job loss or 'switching occupations' is obvious. We are already feeling the effects here in Tennessee, as reflected by new unemployment claims.
Consumers have changed habits faster than anticipated as well. From the report, "Many consumers discovered the convenience of e-commerce and other online activities during the pandemic. In 2020, the share of e-commerce grew at two to five times the rate before COVID-19 . Roughly three-quarters of people using digital channels for the first time during the pandemic say they will continue using them when things return to “normal".
You may read the McKinsey & Company report by clicking here.
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