NEW YORK CITY — A new report from the New York City Independent Budget Office projects and incredibly difficult path ahead toward a full economic recovery.
IBO analysts said Tuesday they expect continued job losses through the first quarter of next year.
The report goes on to state “virtually every industry in the city will lose jobs, with employment not expected to recover its pre-COVID-19 levels before 2024.”
Stavros Vouvoudakis has owned and operated the Townhouse Diner on Manhattan’s East Side for 35-years.
That’s certainly a long time, but he’s the first one to admit getting through this coronavirus pandemic from an entrepreneurial perspective can feel even longer.
Vouvoudakis is down to a skeleton staff on alternating shifts to manage take-out only orders.
“It’s very difficult, and my business is 80% down. Half of them, they’re working one day, the other half, the next day,” he said. “So far, we survive. But I don’t know, tomorrow, what it’s going to be.”
It’s exactly this kind of dismal local economic forecast that compelled U.S. Treasury Secretary Steven Mnuchin to warn the damage to the economy could be permanent if state’s don’t take action to reopen sooner.
Economist Andrew Duguay said the pandemic’s lasting effect on the economy stems from its origin as a health crisis.
Those health issues could force people to delay their return to the workforce.
“I think, for many of us, we want to go to work, we want to get back to the way things were,” he said. “But due to the health reasons, it’s a restriction that you don’t normally see with other traditional economic downturns.”