By Daniel Flaming and Patrick Burns
In just one month, the coronavirus disease (COVID-19) has spread from infecting a few, distant countries to become a global pandemic, bringing large parts of California’s economy to a standstill. Public health directives for consumers to stay at home and nonessential businesses to close for an indeterminate amount of time are causing a profoundly disruptive economic shock. We are seeing the economic fabric of workers earning wages from employers and employers receiving revenue from customers disintegrate as workers lose jobs and are unable to pay for basic needs such as housing, and employers lose customers and are unable to pay basic operating costs for preserving their businesses.
Meeting the basic needs of unemployed workers throughout this economic downturn is essential for preserving our social fabric and civic institutions. California needs to take direct action to address the economic emergency caused by COVID-19 that is causing widespread business closures and extremely high unemployment. Forty-three percent of California workers have a high risk of unemployment.
The burden of unemployment is unequally distributed. It rests most heavily on young adults, Latinos, and workers in restaurant, hotel, personal care, and janitorial jobs. Young adults graduating from school and attempting to enter the job market face extremely difficult challenges.
Many workers who still have jobs are risking their health. Health care workers have uniquely high risks of being infected with COVID-19 because they have very frequent direct physical contact with infected individuals. The risk of being infected by the coronavirus as a result of working in close proximity to other people is greatest among physicians, nurses, and medical technicians. There also are elevated risks of infection for low income workers, African Americans, Latinos, young adults, health care support workers such as home health aides, personal care workers such as child care workers, and protective service workers such as police officers and firefighters.
Similar financial safety nets need to be extended to small and medium size businesses in order to preserve California’s employment base. California has over 940,000 employment establishments, and over 800,000 of these establishments have less than 20 employees. This is an extraordinarily large and diverse employment community to locate, engage, and provide with timely, effective financial support.
As workers lose their jobs, businesses close and family incomes vanish, California needs to rapidly provide assistance and economic relief to workers, their families and their employers. The following ten policies and actions are recommended for the State of California, counties and cities:
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