Cities that rely heavily on tourism hit hardest by COVID-19 job losses – Marketplace

At a time when forecasters were thinking the unemployment rate would continue to soar to nearly 20% the data for May actually show a slight improvement. Unemployment is down to 13.3%, which is terrible compared to pre-pandemic numbers, but still better than the month prior.

Earlier this week, the Department of Labor broke down which cities had been hit the hardest with job losses through April. Two cities in Hawaii, followed by Las Vegas and Atlantic City, topped the list for the highest rates of unemployment in the country.

These are areas that depend significantly on tourism, travel, people coming to conventions, and thats all stopped, and they got hit hard early on, said Mark Zandi with Moodys Analytics.

Zandi says that while many areas of the country have started to reopen, tourism and business travel will likely remain depressed as long as worries about the coronavirus persist.

Several midwestern cities with strong ties to manufacturing also ranked high for unemployment, but could improve faster should business return to normal quickly.

Jed Kolko, chief economist with the job search site Indeed, says that in recent weeks, hes seen a drop in job postings in places other than just tourism spots.

Rather, theyre some of the big tech and finance hubs across the U.S., Kolko said. Ironically some of the places where its easier to work from home.

He says the slowdown in those sectors may be less about the current shutdowns and more about uncertainty over the future health of the economy.

Related Stories

Which businesses are allowed to reopen right now? And which businesses are actually doing so?

As a patchwork of states start to reopen, businesses that fall into a gray area are wondering when they can reopen. In many places, salons are still shuttered. Bars are mostly closed, too, although restaurants may be allowed to ramp up, depending on the state. Its kind of all over the place, said Elizabeth Milito of the National Federation of Independent Business.

Will you be able to go on vacation this summer?

Theres no chance that this summer will be a normal season for vacations either in the U.S. or internationally. But that doesnt mean a trip will be impossible. People will just have to be smart about it. That could mean vacations closer to home, especially with gas prices so low. Air travel will be possible this summer,even if it is a very different experience than usual.

When does the expanded COVID-19 unemployment insurance run out?

The CARES Act, passed by Congress andsigned by President Donald Trump in March, authorized extra unemployment payments, increasing the amount of money, and broadening who qualifies. The increased unemployment benefits have an expiration date an extra $600 per week the act authorized ends on July 31.

You can find answers to more questions here.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today in any amount to become a Marketplace Investor. Now more than ever, your commitment makes a difference.

See the original post here:

Cities that rely heavily on tourism hit hardest by COVID-19 job losses - Marketplace