By Nadia Ramligan, Tennessee Public News Service
One-in-five Tennessee businesses operates in an industry most likely to be affected by the coronavirus recession, according to a new report.
Based on data from 2019, that’s about 34,000 businesses across the state.
Jobs that have disappeared tend to be concentrated in the industries most affected by social distancing, including restaurants and bars, retail and manufacturing, travel and transportation, and entertainment.
Brian Straessle, external affairs director at The Sycamore Institute, said without extra assistance for unemployed Tennesseans, the state will begin to see multiple crises of hunger, eviction and mental health.
“The folks who maybe were going to have a tougher time regardless are also the more likely to be losing their job or having their hours cut,” Straessle said.
Not surprisingly, the report says counties with more workers employed in at-risk industries now have some of the highest unemployment rates. In May, the official unemployment rate reached 18.5% in Sevier County, 17.6% in Warren County, and 17.5% in Marshall County. Unemployment insurance claims across the state remain at an all-time high.
Straessle said there is growing evidence certain segments of the population will be more affected by the pandemic recession than others.
“Surveys that have been done this year show that Black Tennesseans and the youngest folks in our state who are working have been hit the hardest by job losses. And so to have a big setback like a deep recession that we’re facing now could have really long-term effects,” he said.
Straessle said state lawmakers should start looking at policies to help residents keep utilities on, pay their rent or mortgage and prevent household debt.
“These bills can pile up and make it harder to get back on track and get folks into a better place over the long-term,” he said. “So, it’s definitely something to pay attention to, if we see unemployment dragging on for a long time and household debt going up as people have trouble paying their bills.”
State officials recently announced that through a FEMA grant, some residents may be eligible to receive an extra $300 in unemployment insurance, in addition to their state-based assistance. It’s unclear when the additional funds would go into effect.
There is little sign that long-term federal help is on the way. U.S. Senate lawmakers recessed last week without passing a new coronavirus relief package.
