How coronavirus is reshaping America’s job market

October 23, 2020 ☼ economyubi

Source: POLITICO - Link

Factory workers have been left in the cold, too, with many forming some of the first and largest waves of layoffs. Yet increased automation in their absence has led to a notable recovery in output, with the industrial production index bouncing back to 99 in August — less than 10 points down from February. That will mean many of the job losses are likely permanent.

Across sectors, younger workers are more likely than older ones to make the shift, according to Pew. Americans between the ages of 18 and 29 are twice as likely to be working in a new job as those between 30 and 49, and more than three times as likely as workers between 50 and 64.

This is what I predicted some time ago. Companies are shedding employees and learning to live without them. This lowers costs and “boosts” the productivity of the remaining employees. While lower revenue results in lower profits, then end result is that these companies will produce higher profits in the long run. The stock market is taking this into account. It does have the side effect of “reshaping the economy”. Folks who cannot adapt – those who are older, less educated, or face discrimination – will be the losers.

This is an argument for Universal Basic Income.