Who is left in limbo by the stalled stimulus talks.
President Trump’s back and forth on supporting new stimulus measures may be a high-stakes negotiating tactic, according to today’s DealBook newsletter. Until a deal is reached, here are some of the groups left in limbo:
Airlines and hotels. An estimated 948,000 workers in the travel and tourism industry will lose their jobs without more stimulus, according to data from Tourism Economics for the U.S. Travel Association. That’s on top of the 3.5 million jobs the industry has already lost.
Restaurants. A poll last month found that 40 percent of restaurant owners expected to close their establishments within six months in the absence of government aid. Three million restaurant employees have already lost their jobs.
State and local governments. More than four million public-sector jobs could be lost as state houses and municipalities make cuts to compensate for drops in tax revenues, according to Moody’s.
Unemployed people. Temporary layoffs are becoming permanent job losses, the latest data shows, with more than seven million people out of work for at least 15 weeks. A large share have relied on stimulus and extra unemployment insurance to pay mortgages and rent, according to Deloitte, risking wider financial reverberations as savings dwindle.
The U.S. economy as a whole. “It’s simple: Less fiscal stimulus means more economic pain,” Gregory Daco of Oxford Economics wrote in a research note. The absence of additional fiscal aid could reduce economic output 1.5 percent over the next year, he estimated.
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