Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for May 6:
- Temporary layoffs are becoming permanent, increasingly.
- Senate leaders pump the breaks on next round of stimulus money
- Current economic crisis particularly devastating to millennials still recovering from 2009
20 million people lost their jobs in April
“My family has operated Michigan Maple Block through many adverse economic time periods including two world wars, the Great Depression, and multiple recessions. I am saddened that the mounting challenges the business faces today have compelled us to close the company.”
As estimated 20 million people in the U.S. lost their jobs during the month of April and for many. And while many of these layoffs were supposed to be temporary, the breadth and depth of the economic devastation have caused them to become permanent job losses.
As state and local governments begin lifting restrictions, economists debate what the economic recovery will look like and state leaders prepare people for what comes next, given huge projected budget shortfalls.
Meanwhile, the House and Senate remain at odds about how to best support the economy’s recovery …
Partisan politics stalls stimulus talks
“I think we need to think about whether or not what we continue to believe was the right thing to do in March is still going to be the right thing for us to be doing in June.”
Senate Republican leadership has indicated that they are prepared to take some time before passing new COVID-19 aid legislation while House Democrats are reportedly drafting multi-trillion dollar legislation aimed at supporting the U.S. economy on a variety of fronts. While some Democrat lawmakers have advanced the idea of multiple direct cash payments, they have not garnered much bipartisan support. Senators Amy Klobuchar and Elizabeth Warren are urging the Federal Trade Commission to step up efforts to protect small business owners from fraudulent scams during the pandemic.
Millennials hit hard by COVID-19 economy
“One thing we know is that younger workers who were more fragile are already being more hard hit. Older folks will suffer greater wealth losses, but at least they had that wealth cushion.”
Recent data suggests that Millennials are particularly downcast about the future of the economy, as compared to older generations. Born between 1980 and 1997, Millennials are still recovering from the Great Recession of 2009 and, on average, have less of a monetary cushion than their parents. To make matters worse, Millennials make up a disproportionately high percentage of workers in the areas hardest hit by the economic downturn and were already in poor financial shape due to crushing student loan debt.