Concerns over “Employment Cliffs” After Summer in US Will Stop Government Financial Assistance

Concerns over "cliff of employment" in the US after summer: 6:38 on July 5 when the government's financial support disappears

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Although the unemployment rate in the United States remains in a difficult situation at the 11% level, there are concerns that the employment situation could worsen after this summer.

In response to the spread of the new coronavirus, the U.S. government has established an emergency support system of 70 trillion yen to maintain the employment of employees for small and medium-sized enterprises, but 4.6 million companies have already utilized it and 8 Budget is being consumed.

There is concern that market participants will not be able to maintain employment without financial support, calling this situation the “cliff of employment” and that the employment situation could worsen after this summer. It has come out.

In the mid-western state of Michigan, where the manufacturing industry is concentrated, a second-tier subcontractor machine manufacturer, General Motors, is worried whether it will be able to maintain 150 jobs.

At the beginning of August, we will have to reduce the number of employees if the orders, which have decreased by 30%, are not recovering as the state's subsidy is exhausted.

CEO Bob Ross said, "I don't see where the bottom of the business is. I have already reduced employee working hours, but if this continues until September, unfortunately I have to consider dismissing it." "

In the United States, the growth rate of GDP (Gross Domestic Product) from April to June is expected to fall by a record 30% to 40% annually compared to the previous three months. However, if the recovery of employment is delayed, the recession may be prolonged, and the US government's next move will be watched.