With the new year finally upon us, it is natural to want to put the chaos and financial shakiness of last year in our rearview mirror. Looking forward is a great idea, especially now that there seems to be a light at the end of the tunnel in terms of a vaccine. As Bay Staters, we are all looking for signs of an economic recovery in the months ahead. Here is a quick look at how Massachusetts could begin to recover from the coronavirus financially.
What Industries Have Been Hardest Hit?
According to studies from Business Insider online, there are many industries that have been hit harder than others mostly due to necessary coronavirus restrictions such as social distancing. The top industries they cite as being hit the hardest include:
- Restaurants and Bars
- Travel and Tourism Industry- including hotels
- Airline and Transportation Industry
- Entertainment Industry- including sports, performing arts, casinos, amusement parks
- Motion Picture and Sound Recording Industry
- Home Furnishing & Clothing Stores. This includes gift stores
- Dental Industry
- Personal Services: including laundry, dry cleaning, dating, house cleaning, and pet care
How Long Will Economic Recovery Take?
If we only had a crystal ball to read the next few months and years, we would be able to clearly see what is coming in terms of a recovery. Even the most solid of economic forecasters are unsure of what lies ahead but most are certain the vaccine and human behavior hold the key to our recovery both economically and medically.
The Trump Administration suggests that a “v-shaped” recovery is on it’s way. Investopedia states that a V-shaped recovery is characterized by a quick and sustained recovery in measures of economic performance after a sharp economic decline. This recovery would be fast and a best-case-scenario after the fast decline we faced from March through the end of last year.
Local legislators and our own Massachusetts Governor Charlie Baker, believe that our recovery will not be “v-shaped” but rather “w- shaped” meaning we will see fits and spurts, along with re-starts and some setbacks along the way. In other words, some ups and downs along the way to recovery.
A good financial start was made last October when the Massachusetts Governor announced $115 million in new aid. What is needed now is a federal package to follow up and support this beginning for both the state and local municipalities, but also for the many small business owners struggling through this pandemic.
“To be clear, there’s no substitute for the size and scope that a federal aid package could deliver,” the Republican governor said during a press conference. “But that doesn’t seem to be in the offing, and we certainly don’t believe that we can wait.”
So, for now, we continue to wait as our economy begins the long road back that could potentially take months, and some sectors, years. For more information about economic recovery updates, check out our sites at the North Shore Career Center and MassHire North Shore.