It seems that the economy will soon be paying the price of the lockdowns, as two reports suggest businesses are struggling. The lockdowns not only resulted in governments shutting down non-essential businesses, but governments also shifted people’s spending habits online, jeopardizing local jobs.
According to a survey of over 700 US executives and members of corporate boards conducted by PwC in July, nearly 50% stated that they were thinking of cutting staffing and 52% said that they had already implemented a hiring freeze, Breitbart reports.
Breitbart noted that several major corporations have already started laying off employees:
Home goods company Wayfair decided to cut approximately 870 workers to help manage operation costs and “realign its investment priorities” following the coronavirus pandemic, the Associated Press (AP) reported this week.
In addition, Best Buy was also cutting jobs as the company grappled with shifting consumer behavior, the AP reported on August 12.
Another report states that 97% of corporate executives believe America is heading for a recession. READ: 97% of corporate execs think US is in recession, heading for one: survey
Meanwhile, US President Joe Biden believes the best way to end a recession is by redefining what the word recession means. READ: Biden plays Orwell, tries to redefine what ‘recession’ means AND by increasing taxes READ: Biden pushes massive tax hike on workers as recession begins
Meanwhile, in Canada, a report suggests that a significant percentage of small businesses have been equally impacted by the government lockdowns and are planning to permanently close down.
In a recent report, the Canadian Federation of Independent Business (CFIB) stated that 17% of small business owners state that they are planning to shut permanently.
In its release, CFIB added:
“54% of businesses are still operating below normal revenues and 62% are still carrying unpaid debts taken on during the pandemic. Only 10% of Canada’s small business owners would choose to file for bankruptcy if they were unable to keep their doors open.”