Coronavirus Job Losses & Pay Cuts Are Hitting These Households the Hardest; 11% of Global CEOs Fear Their Business Won’t Survive Coronavirus

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11% of Global CEOs Fear Their Business Won’t Survive Coronavirus

Over half of CEOs around the world say the coronavirus is a significant threat to their business; 11% say it could bring their demise, according to a survey from YPO.

  • A survey of 3,500 chief executive officers around the globe conducted by YPO last week shows a marked downturn in the business confidence of corporate leaders.
  • The hospitality and restaurant sector has the most dire outlook, with more than 40% of CEOs saying their businesses may not survive the coronavirus crisis.
  • More than 40% of CEOs globally expect revenue to be down by 20% a year from now.

Coronavirus Job Losses & Pay Cuts Are Hitting These Households the Hardest

U.S. households that already were less prepared to absorb a sudden drop of income are experiencing the greatest share of unemployment and pay cuts, new research shows.

  • Among lower-income adults, 52% say they or someone they live with has lost their job or experienced a reduction in pay.
  • In the middle-income tier, the share is 42%, and among upper-income households, it’s 32%.
  • About 22 million individuals filed for unemployment in the four weeks ending April 11.

U.S. households that already were less prepared to weather a financial storm are getting hit hardest from the recent rash of job losses across the country, research shows.

Adults with lower income (under about $37,500 annually) and middle income ($37,500 to $112,600) comprise a greater share of those who have lost their job or taken a pay cut due to the economic crisis brought on by the coronavirus pandemic, according to the Pew Research Center. Those groups also report having less in emergency savings than their higher-income (above $112,600) counterparts.

“I think we’re seeing a deepening of the inequality that was already there,” said Anna Brown, a Pew research associate.

How Bad Might It Get? Think the Great Depression

(Bloomberg Opinion) — As the economic carnage from the coronavirus pandemic continues, a long-forbidden word is starting to creep onto people’s lips: “depression.”

In the 19th and early 20th centuries, there was no commonly accepted word for a slowdown in the economy. “Panic” was the term typically used for financial crises, while long slumps were commonly called depressions. Presidents such as James Monroe and Calvin Coolidge used the d-word to describe downturns during their administrations. There was even a slump in the 1870s that many referred to as the “Great Depression” at the time.

But then 1929 came, and there was no longer any doubt as to which depression deserved the modifier “great.” The crash hit the entire world, reducing economic output 15%. And it ground on mercilessly for years — by 1933, unemployment in the U.S. was at 25%. The Great Depression was so severe that governments permanently expanded their role in the economy.

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