{"id":3652,"date":"2020-04-20T14:15:20","date_gmt":"2020-04-20T14:15:20","guid":{"rendered":"https:\/\/anaheimtowncarservices.com\/blog\/?p=3652"},"modified":"2026-03-06T06:58:34","modified_gmt":"2026-03-06T06:58:34","slug":"how-will-the-coronavirus-affect-californias-economy","status":"publish","type":"post","link":"https:\/\/anaheimtowncarservices.com\/blog\/how-will-the-coronavirus-affect-californias-economy\/","title":{"rendered":"How Will the Coronavirus Affect California\u2019s Economy?"},"content":{"rendered":"\n

As Californians limit their daily activities \nto slow the spread of the coronavirus, the state economy is poised to \ntake a major hit. The pandemic is increasing the need for some goods and\n services (such as health care) and reducing demand for others (such as \ntravel- and entertainment-related services), so the near-term economic \nconsequences are more serious in some sectors than in others. Moreover, \nthese consequences could exacerbate the unevenness of economic conditions<\/a> and opportunities across regions.<\/p>\n\n\n

<\/p>\n\n\n

Initially, the largest downturns are likely to occur in sectors that \nrely on the movement of people and nonessential goods. Recent forecasts \nhave identified several \u201cat risk\u201d sectors: accommodations and food \nservice; arts, entertainment, and recreation; administrative and support\n services, especially employment services; mining and oil\/gas \nextraction; transportation and warehousing; and agriculture (UCLA Anderson<\/a> and Moody\u2019s Analytics<\/a>).\n Shocks in these industries will be driven by reduced local demand, as \nwell as slowing of trade in and out of California\u2019s ports (especially \nrelevant for the transportation and warehousing and agriculture \nsectors).<\/p>\n\n\n\n

These sectors\u2014excluding agriculture\u2014comprise 10% of the state GDP and\n employ 3.9 million workers. Unemployment insurance claims data is starting to show the impact on workers<\/a>,\n but it will be a while before we get detailed data for all California \nworkers (including those who do not apply for unemployment insurance).<\/p>\n\n\n\n

We can, however, learn a lot about the pandemic\u2019s impact on workers, \nsectors, and regions from recent employment statistics. Employment in \nthese sectors makes up more than a fifth of overall non-farm employment \nin both California (22%) and the nation as a whole (21%).<\/p>\n\n\n\n

\"figure<\/figure><\/div>\n\n\n\n

The workforce in these industries is not just large; it also \ncomprises a wide range of occupations (for example, pilots as well as \nbaggage handlers in the transportation industry; hotel managers as well \nas cleaning staff in the accommodation industry). At this point, we \ncannot predict exactly how the COVID-19 crisis will affect these \nworkers. But reduced hours and layoffs are highly likely, and the \nworkers least able to weather the storm are those who already struggle with poverty<\/a>.<\/p>\n\n\n\n

Overall, we estimate that 19% of Californians employed in these industries are working poor and another 22% are just above the poverty line<\/a>\n (\u201cnear poor\u201d). The poverty rate among workers in the accommodation and \nfood service sector is 24%. This sector, which is being hit hard by \nreduced tourism and dining out, is the largest of those expected to \nexperience the most immediate economic consequences.<\/p>\n\n\n\n

\"figure<\/figure><\/div>\n\n\n\n

Because California\u2019s industries are not evenly distributed, the \ninitial impact on economic activity and on workers will likely vary \nacross the state. Among major metro areas, Los Angeles, Anaheim\u2013Santa \nAna\u2013Irvine, Stockton, and Riverside\u2013San Bernardino have larger shares of\n jobs (ranging from 22% to 28%) in at-risk sectors than the state as a \nwhole.<\/p>\n\n\n\n

As one might imagine, these areas differ from one another in many \nways. While Stockton has a relatively large share of employment in \ntransportation and warehousing, Anaheim\u2013Santa Ana\u2013Irvine has a large \nshare in accommodation and food services. Not surprisingly, given its \npopulation, the Los Angeles metro area has by far the largest number of \nworkers in at-risk sectors: 1,043,000. Riverside and Anaheim follow with\n 433,000 and 417,000, respectively.<\/p>\n\n\n\n

\"figure<\/figure><\/div>\n\n\n\n

The longer-term economic impact of the coronavirus on these and other\n sectors will depend on how long the crisis lasts. Policy responses can \nplay a critical role in mitigating the economic damage. State and \nfederal leaders face the challenge of helping businesses weather the \ncrisis and rebound quickly, while also addressing the tangible needs of workers who may be losing income<\/a>, especially those who are already in or near poverty.<\/p>\n\n\n\n

A host of economic interventions<\/a>\u2014many\n of which aim to help dislocated workers\u2014have already been announced, \nand more will be implemented as the economic consequences of this \npandemic become clearer. As they develop these interventions, \npolicymakers will want to take into account industries and workers \nacross all of California\u2019s regions.<\/p>\n","protected":false},"excerpt":{"rendered":"

As Californians limit their daily activities to slow the spread of the coronavirus, the state economy is poised to take a major hit. The pandemic is increasing the need for some goods and services (such as health care) and reducing demand for others (such as travel- and entertainment-related services), so the near-term economic consequences are […] Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":4130,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[209,202,201,192,196],"tags":[],"class_list":["post-3652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-car-service-from-lax-to-disneyland-hotel","category-car-service-john-wayne-airport-to-disneyland","category-car-service-lax-to-disneyland","category-lax-to-disneyland-car-service","category-town-car-from-sna-to-disneyland"],"_links":{"self":[{"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/posts\/3652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/comments?post=3652"}],"version-history":[{"count":1,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/posts\/3652\/revisions"}],"predecessor-version":[{"id":3654,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/posts\/3652\/revisions\/3654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/media\/4130"}],"wp:attachment":[{"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/media?parent=3652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/categories?post=3652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anaheimtowncarservices.com\/blog\/wp-json\/wp\/v2\/tags?post=3652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}