'How did things end up like this?' America's newly unemployed grapple with coronavirus fallout

By Barbara Goldberg, Nate Raymond, Jessica Resnick-Ault and Lucy Nicholson

 

FILE PHOTO: Raul Gonzalez, Jr., 53 stacks chairs at his Mambos Cuban restaurant, which is being forced to close after 32 years, due to the global outbreak of the coronavirus disease (COVID-19), in Glendale, California, U.S., March 18, 2020. REUTERS/Lucy Nicholson

 

NEW YORK/LOS ANGELES (Reuters) - Across the United States, thousands of waiters, cooks, hotel staff, actors, bartenders and workers in other sectors have suddenly found themselves unemployed as the coronavirus pandemic has scythed through the world's biggest economy.

 

This abrupt reversal of fortune for the economic victims of the virus happened almost overnight, turning lives upside down as their places of work shuttered or reduced staffing. Dreams of the future have been replaced by worries about the present: "How do I pay my rent" or "How do I pay for food?"

 

While some ponder returning home to their parents temporarily to help make ends meet, others are too afraid to take this step, worried they might expose older loved ones to the virus. And many are now applying for unemployment benefits for the first time in their lives.

 

A few hours after ending her shift on Wednesday, Nyiasha Johnson got a call from a co-worker with devastating news: she had lost her job at Philadelphia International Airport, one of hundreds of contract service workers hit by airline company cuts.

 

"My initial thought process was how am I going to pay my bills. Do I need to contact my landlord now because the rent is two weeks away?" Johnson, 40, told Reuters. "I'm very stressed out emotionally, confused. Just trying to stay positive."

 

Katie Vetere, 32, is the general manager of One 53, a small restaurant near Princeton, New Jersey, which was forced to shut down after state authorities banned table service. Her fiancé, Rafael Garcia, 37, is the restaurant's head chef.

 

"I go from 'I'm sad' to 'I'm scared' to 'I'm angry,'" said Vetere, who has applied for unemployment benefits for the first time in her life, which she expects to be less than half her normal weekly paycheck.

 

"Do I consider my job lost? I don't know. Am I the general manager or WAS I the general manager? It's the uncertainty of all this that's the hardest part," she added.

 

The number of Americans filing for unemployment benefits surged to a 2-1/2-year high last week, the Labor Department said on Thursday. Initial claims for state unemployment benefits jumped 70,000 to a seasonally adjusted 281,000 for the week ended March 14 - the largest rise since November 2012.

 

Economists are expecting a recession by the second quarter, though some believe a downturn is already under way.

 

'HOW DID THINGS END UP LIKE THIS?'

TJ Horth, a hotel bell captain in Chicago, said he had almost saved enough money to buy his girlfriend an engagement ring before hearing on Wednesday that he had been laid off. Now, he might have to use that money to fund his rent.

 

"I have no more money," Horth, 36, said. "I was so close to buying the ring too so I'm just kind of bummed ... I hate that feeling of letting her down, but food and a roof over our heads are way more important at the moment."

 

One of the hardest hit industries is hospitality after many cities across the country restricted service to takeout.

 

Gerardo Ponce of Los Angeles turned 30 on Thursday, three days after losing his job as a manager and server at Mambos restaurant. He spent his birthday at home trying to help his three sons with their schoolwork on their cellphones.

 

"Me and my wife are trying to figure out a plan, what we're going to do in the future but as of now, we're just doing it day by day," Ponce said.

 

Seven months after moving to Seattle, Naomi Hagelund was preparing on Thursday to return to Alaska, having lost her job as a server in a Tex-Mex restaurant along with her additional income from dog walking, which dried up as clients were forced to work from home and began exercising their pets themselves.

 

"I'd rather be stuck in a cabin in the woods in Alaska than here with no income," said the 35-year-old.

 

For a lot of younger people who have lost their jobs, returning to their parents' home may not be an option.

 

"My parents are in their late 60s and they're like, 'You can't come home,'" said Heidi Minora, 36, a general manager at Commissary restaurant in Washington, who was laid off with her entire staff of about 40 people this week. "It's a very sad reality."

 

Some people have not lost one job, but two.

 

When Iowa announced its schools would be shut for at least a month, mother of two Jessica Dick, 41, lost her job as a special education assistant. Then on Tuesday Iowa suspended eat-in dining and Dick lost her second job at a restaurant.

 

"I spent a good amount of time crying. I was tight in the chest, shaky, sick to my stomach," said Dick, who lives in Sumner, Iowa. She learned on Thursday that she will receive unemployment benefits, giving her some relief from immediate financial worries.

 

Pastry chef Abigail Rubin, 30, lost her job this week and for the first time applied for unemployment benefits. Grappling with the rapid changes to American life, she asked: "How did things end up like this?"

 

(Additional reporting by Elizabeth Culliford and Raphael Satter; Writing by Michelle Nichols; Editing by Ross Colvin and Howard Goller)

 

-- © Copyright Reuters 2020-03-20

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Trump and his thousand dollar check to each will have to stretch a long way.

The worst hit are service sector and gig-economy, and mostly young people but it’s moving further up the economy.

 

$1000 is not going to buy their vote.

44 minutes ago, leeneeds said:

Trump and his thousand dollar check to each will have to stretch a long way.

Talk to people working service jobs, very many have two sometimes three part time jobs.

 

If they have spare time they work, they want work and the dignity of earning their own money.

 

Trump’s largesse with the public purse is way short of what millions of Americans want.

 

He ruins everything he touches.

A sad state of affairs so many here work incredible hours just to barely make ends meet one illness and doctors visit away from homelessness now this hang in there everyone around the world we as a species will get through this we as Americans will get through this and let’s make some changes so it’s better for us regular folks

45 minutes ago, Chomper Higgot said:

Talk to people working service jobs, very many have two sometimes three part time jobs.

 

If they have spare time they work, they want work and the dignity of earning their own money.

 

Trump’s largesse with the public purse is way short of what millions of Americans want.

 

He ruins everything he touches.

 

Three part time jobs = one job. I drive for Uber, do 10 hours a week for Amazon delivery and sell weed. On Friday night I bounce from 10 - 2 for my friends nightclub. So I have 4 jobs technically.

 

Just before people accuse me I don't do any of that. So don't rag on about me being involved with illegal activities, although it is legal here.

 

I remember Warren saying people work three jobs for minimum wage and commute 3 hours to do it. It's a bunch of nonsense. Lot's of young people still live at home and are opportunistic about their "three jobs". 

 

Every job that has been cut will be back when the threat is over. It's not like a bunch of highly skilled workers have been put to rest. The tricky part is to stay in your mom's basement and not be a super spreader.

Edited March 20, 20206 yr by Cryingdick

4 minutes ago, Cryingdick said:

 

Three part time jobs = one job. I drive for Uber, do 10 hours a week for Amazon delivery and sell weed. On Friday night I bounce from 10 - 2 for my friends nightclub. So I have 4 jobs technically.

 

I remember Warren saying people work three jobs for minimum wage and commute 3 hours to do it. It's a bunch of nonsense. Lot's of young people still live at home and are opportunistic about their "three jobs". 

 

Every job that has been cut will be back when the threat is over. It's not like a bunch of highly skilled workers have been put to rest. The tricky part is to stay in your mom's basement and not be a super spreader.

Actually sounds like interesting work.

Lots of hours good for you.

1 minute ago, bkk6060 said:

Actually sounds like interesting work.

Lots of hours good for you.

 

It's not too hard it takes less time to make money then it does excuses.

Edited March 20, 20206 yr by Cryingdick

1 hour ago, leeneeds said:

Trump and his thousand dollar check to each will have to stretch a long way.

You are supposed to say thank you when some one gives you money

8 minutes ago, Cryingdick said:

 

Three part time jobs = one job. I drive for Uber, do 10 hours a week for Amazon delivery and sell weed. On Friday night I bounce from 10 - 2 for my friends nightclub. So I have 4 jobs technically.

 

Just before people accuse me I don't do any of that. So don't rag on about me being involved with illegal activities, although it is legal here.

 

I remember Warren saying people work three jobs for minimum wage and commute 3 hours to do it. It's a bunch of nonsense. Lot's of young people still live at home and are opportunistic about their "three jobs". 

 

Every job that has been cut will be back when the threat is over. It's not like a bunch of highly skilled workers have been put to rest. The tricky part is to stay in your mom's basement and not be a super spreader.

Making lite of family’s struggling to keep a roof over their children’s head and food in their bellies is uncalled for I can rember sometimes back in the day waking up in a cold sweat worrying if I got hurt or sick how I would take care of my family thank god I made it 

6 minutes ago, Nyezhov said:

You are supposed to say thank you when some one gives you money

It’s our taxes and it has to be payed for ..........

10 minutes ago, Tug said:

Making lite of family’s struggling to keep a roof over their children’s head and food in their bellies is uncalled for I can rember sometimes back in the day waking up in a cold sweat worrying if I got hurt or sick how I would take care of my family thank god I made it 

 

This assertion that people commute over an hour to work no less than 3 jobs for minimum wage is a myth. A waitress in a busy restaurant or a bartender can make between $200 - $500 a day. Who is poor?

 

That they have really pressing bills to pay for many younger people is a farce. $1,000 is enough for the Walmart greeter to take a few weeks off. Most companies in the USA are also giving leave with pay.

Edited March 20, 20206 yr by Cryingdick

5 minutes ago, Tug said:

It’s our taxes and it has to be payed for ..........

Your taxes? How much did you PAY over the past few years? Or he, let me put it another way, has your accountant ever smiled and given you a nickle and dimed out tax bill for $29,000?

 

 

"I'd rather be stuck in a cabin in the woods in Alaska than here with no income," said the 35-year-old.

 

Jezus Christ! I prefer a city or village in Isaan.......

7 minutes ago, Tug said:

It’s our taxes and it has to be payed for ..........

Not really,

They will just print the money.

4 minutes ago, Cryingdick said:

A waitress in a busy restaurant or a bartender can make between $200 - $500 a day. Who is poor?

$500 a day? I met a banquet server here on vacation that works 6 months a year and makes $60K. 

1 minute ago, Nyezhov said:

$500 a day? I met a banquet server here on vacation that works 6 months a year and makes $60K. 

 

Did they manage to save $1,000 and put it in a bank account? The money from some jobs is actually really decent.

4 minutes ago, Nyezhov said:

$500 a day? I met a banquet server here on vacation that works 6 months a year and makes $60K. 

????

$500 a day with days off each month results in more then 60k in 6 months.

16 minutes ago, bkk6060 said:

????

$500 a day with days off each month results in more then 60k in 6 months.

I was put on this earth to be handsome and the fount of all wisdom except simple multiplication and string theory. ????

20 minutes ago, Cryingdick said:

 

Did they manage to save $1,000 and put it in a bank account? The money from some jobs is actually really decent.

No she travels for 6 months. A snowbird at the age of 32.

31 minutes ago, Cryingdick said:

 

This assertion that people commute over an hour to work no less than 3 jobs for minimum wage is a myth. A waitress in a busy restaurant or a bartender can make between $200 - $500 a day. Who is poor?

 

That they have really pressing bills to pay for many younger people is a farce. $1,000 is enough for the Walmart greeter to take a few weeks off. Most companies in the USA are also giving leave with pay.

Read the OP,  restaurants aren’t busy and staff are being laid off.

 

Though I accept you want to build your own stream to knock down.

2 hours ago, leeneeds said:

Trump and his thousand dollar check to each will have to stretch a long way.

I saw a short vid yesterday, I think it was from NBC news or similar, 2 American girls I guess about 19 - 21 years old complaining about the virus etc., both angrily saying 'not fair. this will ,

disrupt my gap year which I'm entitled to'.  

 

49 minutes ago, Cryingdick said:

A waitress in a busy restaurant or a bartender can make between $200 - $500 a day.

not in Australia you won't ... just saying.  Most young folks there work 3-4 jobs for a total of 10-30 per week, probably get about $80-120 a day if their lucky.

It's a joke.

Edited March 20, 20206 yr by steven100

49 minutes ago, Nyezhov said:

$500 a day? I met a banquet server here on vacation that works 6 months a year and makes $60K. 

These are numbers of a particular time of the year?

I'd go for $ 500 a day. 

BTW, six months = 180 days = 500 x 180 =  $ 90 K.

No tax, insurance, etc...

 

How secure is a job being a banquet server in times of Corona?

 

I prefer a steady income. 

Edited March 20, 20206 yr by Isaanbiker

49 minutes ago, bkk6060 said:

????

$500 a day with days off each month results in more then 60k in 6 months.

More than and then? ????

56 minutes ago, Isaanbiker said:

"I'd rather be stuck in a cabin in the woods in Alaska than here with no income," said the 35-year-old.

 

Jezus Christ! I prefer a city or village in Isaan.......

Spoken like someone who has lived there ????

 

That Millenial hasnt. Let me say three words: Cold. Outhouse. Shower.

16 minutes ago, steven100 said:

not in Australia you won't ... just saying.  Most young folks there work 3-4 jobs for a total of 10-30 per week, probably get about $80-120 a day if their lucky.

It's a joke.

Americans tip. Like at a wedding banquet? $5000 for the servers to split. Its nothing for folks to tip 30% on a check if the server is good, especially if they have been servers before.

55 minutes ago, Nyezhov said:

Your taxes? How much did you PAY over the past few years? Or he, let me put it another way, has your accountant ever smiled and given you a nickle and dimed out tax bill for $29,000?

 

 

Roughly 30%out of each pay check all ways tryed to be owed money not paying now donalds tax break for the rich cost me roughly 9k last year sounds to me if you owed 29k you dident set enough by or tryed to go exempt 

Just now, Tug said:

donalds tax break for the rich cost me roughly 9k last year

so you paid 9k more after the tax cuts then before? All tbings being equal? Get a new accountant...or maybe you make too much money. You must be one of those 1 percenters pretending to care.

1 minute ago, Nyezhov said:

so you paid 9k more after the tax cuts then before? All tbings being equal? Get a new accountant...or maybe you make too much money. You must be one of those 1 percenters pretending to care.

No I got 9k less back on my return same earnings from the year before like I said I always make sure they owe me and naaa just an old construction diver not a 1 percenter by a long shot lol