manager's job

Jobless Pandemic: Geography of Layoffs and Opportunity Zones

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Under the WARN Act, employers are required to provide 60-day

 

notice to workers in the event of plant closings and mass layoffs. In

 

this case, a temporary layoff originally not expected to last more

 

than six months could trigger a WARN. This has been the case with

 

many companies during the recent pandemic. The stay-at-home

 

orders caused a sudden loss of business outside of the employer's

 

control. Ohio required that companies laying off 50 or more

 

employees report the layoff within a 7-day period. The nature of the

 

layoffs does not allow a complete analysis of all jobs lost in the

 

region.

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   There was a total of 19,318 layoffs reported from companies in

 

Northeast Ohio (NEO) between January and August of 2020. 91% of

 

the layoffs since March 19th have been attributed to the stay-at-

 

home order. The months of March and April saw the most COVID-19-

 

related layoffs with 6,190 affected. Cleveland-Elyria Metropolitan

 

Area saw 31% of total COVID-19 layoffs, with OZs (or Opportunity

 

Zones) in Cuyahoga County taking the biggest hit. The industries

 

most affected by the pandemic have a big presence in downtown

 

Cleveland.

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   A total of 9,796 laid-off employees were in the service industry in

 

Cuyahoga County, representing 58% of all COVID-related layoffs

 

reported in NEO. The trend of service industry layoffs remained true

 

for the entire Cleveland MSA, which had over 9,800 laid off. The

 

Akron MSA had the same three industries topping the list of layoffs

 

from reported WARNs. MGM Resorts International in the Art,

 

Entertainment, and Recreation industry laid off 938 employees in

 

May. OS Restaurant Services, LLC in April closed several restaurants,

 

resulting in loss of 335 jobs.

 

   The Youngstown-Warren-Boardman MSA saw 34% of its layoffs

 

reported in the Accommodation and Food Services industry. Partial

 

closures from North American Dental Group led to an added loss of

 

443 jobs in the Health Care and Social Assistance industry. The

 

Canton-Massillon MSA experienced the least number of COVID-

 

related layoffs. The Accommodation and Food Services industry had

 

the highest number of job losses. The remaining 13% of layoffs that

 

did not happen occurred in the Wholesale Trade, Manufacturing, and

 

Health Care industries.

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   Manufacturing and Retail Trade dominate the list of industries that

 

filed for WARNs in 2019 and 2020. Arts, Entertainment, Recreation,

 

and Accommodation and Food Services have a minimal presence.

 

Analysis excludes companies that were forced to lay off employees

 

for reasons other than the pandemic. The number of employees laid

 

off between January and August 2019 and COVID-19 is very similar

 

with 2018 and 2,211 lost jobs.

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   Many of the layoffs may have been bound to occur regardless of

 

the ongoing cyclical recession that suggests started in Ohio in

 

2019.Northeast Ohio is experiencing the pandemic deepening an

 

already occurring recession. Even if a long-term solution were to be

 

prompt, activities may not return to business as usual. Significant

 

effort will be necessary from business and government in addition to

 

assistance from the federal government. This article concludes by

 

discussing the effort that will be required from business leaders to

 

come back from the challenges that have surfaced. The only way

 

businesses can benefit from this pandemic is to learn from it and

 

remain prepared to face the next challenge.

 

 

Team 4: Topic 5 – Productivity/Plant Closing

Work Cited

Figueroa, Georgina; Ellerbrock, Matthew; and Lendel, Iryna V., "Jobless Pandemic: Geography of Layoffs and Opportunity Zones" (2020). Urban Publications. 01231679. https://engagedscholarship.csuohio.edu/urban_facpub/1679