A new report sheds light on the devastating impact the pandemic has had on the travel industry, accounting for a 42% drop in spending.
The U.S. Travel Association says the travel industry’s impact on the US economy dropped 42%, from $2.6 trillion to $1.5 trillion. Similarly, travel-supported jobs dropped from 16.7 million to 11.1 million, a total of 5.6 million. Just as telling, those losses account for 65% of all US jobs as a result of the pandemic.
“While the gradual progress of vaccinations has provided hope that a turnaround may be on the horizon, it is still unclear when travel demand will be able to fully rebound on its own,” said U.S. Travel Association President and CEO Roger Dow. “With the travel industry suffering such a disproportionate share of losses, policymakers need to understand that a nationwide economic recovery effectively hinges on a travel recovery.”
The economic stimulus will no doubt have a positive impact on the industry, but there’s still a long way to go before it recovers fully.
“The latest round of relief was helpful to our industry, but there are a number of important steps that still must be taken, especially extending the deadline for the Paycheck Protection Program and passing the key package of tax incentives in the Hospitality and Commerce Job Recovery Act,” said U.S. Travel Association Executive Vice President of Public Affairs and Policy Tori Emerson Barnes. “The PPP is set to expire in just two weeks, yet the economic effects of the pandemic will continue to harm the industry far beyond that point.”
After the COVID-19 pandemic brought the global economy to a grinding halt, technology allowed it to start crawling forward again. This was by way of delivery apps for things like food and household goods as well as remote work, which has kept the economy moving, albeit more slowly than we would like. Without this technology our economy would already be destroyed, and it’s precisely this type of technology that is going to lead the way to the economic recovery.
In some states as many as one in four people are out of work. These are mostly people whose jobs require in-person attendance in situations that local governments have deemed too unsafe. The restaurant industry has been hit especially hard as have bars and small retail shops as people choose larger big-box stores for their safe once weekly runs for necessary items.
Fortunately, two in three Americans are still able to work remotely during the pandemic. For the most part, office jobs have migrated online anyway, and offices are full of people who are all sitting at computers all day. Almost all of this can be done remotely.
The move to remote work is likely to be permanent, too. Three in five of the people who are currently working remotely wish to continue doing so after the pandemic passes, and before the pandemic just 29% of college graduates were working from home at least part of the time.
Workers have been clamoring for remote work opportunities for years, though. Disability advocates say it gives disabled people the reasonable accommodations guaranteed them by the Americans with Disabilities Act in that they already have accessibility in their own homes that many offices do not offer. Remote work opportunities will also give more parents access to jobs that have flexibility when it comes to being around for the bus stop, eliminating the need for before and after school care.
With more people gaining access to work opportunities that fit their lifestyles, the economy will make a better recovery. This is all fueled by technology and the internet, and the first thing to look at to spur this revolution is universal broadband access.
Universal broadband has been on the radar for years already, but the pandemic has made it apparent how crucial this is to the basic functioning of our modern society. Currently around 21 million students in the United States lack access to high speed internet in their homes, and those students live in communities where businesses are also lacking the access needed to conduct normal business.
Working toward universal broadband access could be this generation’s WPA, which could spur economic growth for decades to come.
This economic downturn is an opportunity to build things stronger and better not only to withstand the next major economic crisis, but also to provide opportunity for the economy to grow and prosper. With advances in broadband access and work-from-home opportunities, the economy will be poised to make a recovery and go on to reach new heights.
Learn more about the role tech will play in the economic recovery from the infographic below.
The pandemic has had a deleterious effect on the economy, our daily lives, our careers, and our schools. Parents are having to choose between working and taking care of their kids’ educational needs, while companies have had to make serious adjustments to keep business rolling. Everyone is basically in a holding pattern, but one of the ticking time bombs that has largely gone unnoticed is the high school and college aged students who are about to graduate into one of the most difficult job markets in history.
The Challenges Of College In A Pandemic
Many colleges shut down temporarily at the outset of the pandemic, but some tried to bring students back into unsafe conditions. Liberty University was one such institution, and it’s now facing lawsuits that allege the schools put students’ health and safety at risk as a pretext to continue to collect fees and tuition for fewer services.
Other colleges and universities have moved their courses online, which presents a whole other set of challenges. Students lack the in-person interactions they need to build a network and learn to work together on a team. It does have the benefit of preparing students for remote work, but there will be challenges in integrating these students into the workforce if steps aren’t taken to ensure they are getting at least a baseline college experience.
Undergraduate students often find that their classes and organizations help them build a network upon which they can build their careers later. Without such a network to leverage, career building is going to be a challenge.
What’s more, without those building blocks and that basic universal college experience, workplaces may struggle to integrate recent grads into new roles.
Careers, Workplaces, And The Economy
Right now we are living in what is arguably the worst economic downturn since The Great Depression. The United States has officially been in a recession since June, and it’s not showing any signs of turning around.
Students who are graduating into this environment are going to have a difficult time finding work, which is ultimately going to slow the economic recovery even more. As older generations begin to retire in a few years there will be fewer low to intermediate level job candidates to move up the ladder and push middle level candidates into those vacant leadership positions.
In short, this pandemic and the subsequent economic downturn are going to be playing out in our economy for decades to come.
Supporting Students To Turn The Economy Around
It’s difficult to imagine hiring right now, but that will be crucial to ensuring today’s students are able to become tomorrow’s business leaders. Now is the time for education and training, and most importantly for supporting graduates who stuck it out and made the most of a bad situation, as they are the ones who faced a pandemic with an antifragile mindset.
It’s going to take time and effort to recover fully from this economic crisis, but the time to start taking action is now. Learn more about the challenges of college during coronavirus and how to support students from the infographic below.
