Unemployment in New York: how many people have lost their jobs and what will happen next

Economists predict that by June, unemployment in the United States could rise to about 20%, a level not seen since the Great Depression of the 1930s. The newspaper wrote about who was the first to lose his job in New York and filed an unemployment claim, and who is not eligible for support from the state. CNN.

How it all began

Ten days before New Yorkers were urged to quarantine, Truman Lam, 35, was already considering closing his Jing Fong restaurant in Manhattan's Chinatown. It was Tuesday, March 10th. In the afternoon, he decided to check how many visitors were in his dining room, seating up to 800 people, and counted a total of 36.

According to him, the business began to slow down in January and fell by 80%. All March parties have been canceled. But Lam continued to work. However, when there was not enough money even to pay wages for the day, he made the final decision to close the restaurant. He let 170 employees go home and recommended that they apply for unemployment benefits.

Across New York, a huge number of such companies shut down during the coronavirus pandemic. People without a job were forced to apply for unemployment benefits.

Unemployed among racial groups

Asian workers have filed the largest number of initial jobless claims in the past four weeks, with 147, up from 2100 in the same period last year. This is 6900% more than any other racial or ethnic group.

Among the white population, the number of people applying for unemployment benefits increased by 1840%; among blacks - by 1260%; among Hispanics - 2100%.

New York stands out from other states in that in early April it began to publish weekly detailed demographic data on applicants for unemployment benefits. It is not surprising that the number of applications in each state is growing rapidly, reflecting the sharp economic downturn, as a result of which, since mid-March, 30 million Americans first applied for unemployment benefits.

Who was the first to lose his job

The first to be hit by the economic downturn were low-paid workers. For example, employees of restaurants, small shops and nail salons. "You can't clip your nails six feet, can you?" - commented Wellington Z. Chen, executive director of the non-profit Chinatown Partnership.

More fortunate enough to the so-called "white-collar workers." This category includes doctors, surgeons, and software developers. They are more resistant to layoffs. However, economists expect these sectors to suffer further during the pandemic.

The reason for the increase in the number of applications for benefits

Some people are sent on unpaid leave, others are fired themselves, not wanting to endanger themselves.

For example, 25-year-old Lin Weng lives in Sunset Park, an area known as Brooklyn's Chinatown. She worked at a coffee shop until she was sent on unpaid leave on March 22nd. But while she was still working, she encountered an incident: one client refused service due to the Veng race. “One lady came in, and the first thing she asked me was,“ Do you have a coronavirus? ”Weng recalls. She added that the woman ordered iced coffee, but then changed her mind and left.

Columbia University sociology professor Jennifer Lee believes the damage was caused by statements by US President Donald Trump, who called the coronavirus "the Chinese virus." “Although he no longer refers to the coronavirus as the 'Chinese virus,' the damage has already been done,” she wrote in an email.

The number of attacks on Asians in New York has also increased. NYPD Special Forces reported that of the 14 hate crimes associated with coronavirus that it had investigated since the outbreak began, all victims were of Asian descent.

On the subject: New York Health Insurance: What Options Do Immigrants Have

In addition to racism and xenophobia, Asian companies in areas such as Chinatown and Flushing also face the fact that some customers have drastically reduced their interactions with Asian companies. That's because the owners noticed a huge drop in traffic there.

Previous social distancing has also hurt business. Some key businesses, including Asian supermarkets in Flushing and laundries in Brooklyn, closed despite being allowed to work.

Some employees themselves refused to go to work for fear of contracting the virus, or because the business had fallen.

What do unemployed people think

Some employees who filed an unemployment application agree with the decision of their superiors to close the business, even if it meant for them personally a loss of income.

For example, 25-year-old Zixian Tang, who lives in Flushing, Queens, worked at a popular karaoke bar until March 15. Then his boss made the decision to close the business, and Tang supported him. “I don’t want to go to work because I’m afraid, even though I have to pay rent. The death toll is too high, ”he said.

A 38-year-old Jennifer Feng, a nail salon worker in a busy shopping center in Flushing, said the salon decided to cancel numerous upcoming meetings and close on March 16th. She has not yet submitted an application for benefits: she is waiting for a stimulating check from the government and hopes that she will not need additional benefits.

Mohammed Uddin, 42, said that although the first case of the virus in New York was announced on March 2, it was only after the death toll began to rise in mid-March that he began to realize that the situation was dangerous. He worked as a driver for Access-a-Ride until March 17, but quit. He explained his decision by the fact that the work involves the transportation of elderly and sick patients from home to the hospital, and this is too risky. His friends, the drivers who helped him with the job, also quit, he said. Uddin added that he lives with his wife, two young children and parents. His mother is 67 years old and his father 75 years old, both have diabetes. “If I find another job that does not require close contact with people, of course, I will go to work,” he said.

Who is not eligible for benefits

Some New Yorkers simply do not have the opportunity to apply for unemployment benefits. We are talking about unregistered immigrants who do not have the right to do so.

So, the 23-year-old Sora Lee, who lives in Queens, said that none of her family members have the right to submit documents. Both her parents did not have documents, while she and her sister worked in companies that paid wages in cash. All four of them recently lost their jobs.

The girl's mother, who asked not to be named due to immigration status, worked as a manicurist until the salon closed. “I would like to work for the money, but at the same time, it is very dangerous due to the virus, so closing it was a good idea,” she said.

Today Li works as a nanny, which gives the family an income. However, the girl's mother worries that the funds will not be enough to pay all the bills. “Rent, electricity, cable TV, internet, auto insurance and life insurance payments due soon amount to up to $ 2600,” she said. And she added that she would like undocumented immigrants to be eligible for any assistance.

What lies ahead

The epidemic could change the face of New York. Marlene Kim, professor of economics at the University of Massachusetts Boston, conducted a study in 2012. He concluded that during the 2008 recession, Asian Americans had the highest long-term unemployment of any population. “I'm going to predict it will happen again,” he said. - I think it was partial discrimination, but some other people left the labor market, they did not even look for work. But Asians continued to look for work and were considered unemployed. "

Economists predict that by June, unemployment across the country could rise to about 20%, a level not seen since the Great Depression of the 1930s.

The rapidly rising unemployment rates in New York can only be the beginning.