According to the US Department of Labor, over 16.8 million American workers have lost their jobs and filed initial claims for unemployment benefits. This current calculation does not include those workers who have yet to file for unemployment benefits and does not include undocumented workers. Layoffs, furloughs, and pay cuts have swept our nation. Amid such a crisis, Amazon is seeing surges in demand. Amazon has solidified itself as an e-commerce giant and its current business model easily aligned with the COVID-19 social distancing orders. Amazon has already filled the 100,000 positions they posted last month and now they are hiring another 75,000.
The applicants for these positions are those who typically work in this industry as well as blue-collar and white-collar workers that have recently become unemployed due to COVID-19. Amazon says, “We know many people have been economically impacted as jobs in areas like hospitality, restaurants, and travel are lost or furloughed as part of this crisis and we welcome anyone out of work to join us at Amazon until things return to normal and their past employer is able to bring them back.” As Amazon increases efforts, they have also increased safety measures such checking temperatures of employees and even shutting down warehouses where employees have tested positive for COVID-19. Amazon has been credited as a central supplier of critical medical and household items that have been needed during this time.
Discussion Questions:
- Some economists argue that if part-time employment increases while unemployment remains unchanged, the economy has moved further from full employment. Do you agree? Explain your reasoning.
- David has been out of work for over three years and he recently gave up looking for work because there were no jobs available. What is the impact of David leaving the labor market?
Source: Forbes “Amazon Hired 100,000 People Last Month. Now It’s Hiring Another 75,000,” by John Koetsier.