Estimates from a report presented by the Southern California Association of Governments put the unemployment rate in the county close to 20% due to the pandemic
The quarantine order has forced thousands of businesses to close their doors, which has triggered unemployment.
MICHAEL REYNOLDS / EFE
Southern California faces an economic impact "severe and durable”According to a report presented by the organization Southern California Association of Governments (SCAG) last week.
Using an economic structural forecast, the organization has estimated that the unemployment rate in the los angeles county It is located near the 20% and that at least 760,000 people will lose their jobs this 2020.
In a comparative with the year 2019county The Angels had an unemployment rate of 4.4%.
For SCAG the biggest impact on sales will be reflected in clothing stores, dealers and auto parts and restaurants.
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Another aspect that they consider and which they warn of will have a strong impact for southern California it is in the supply chain where at least a third of all jobs and economic activity are linked.
In a newly published report, SCAG analysis projects difficult economic times ahead in the wake of the COVID-19 pandemic. The pace of any recovery is largely going to depend on when / how businesses reopen & the speed in getting a vaccine to market.https: //t.co/VGz4r6oJrb
– Southern California Association of Governments (@SCAGnews) May 19, 2020
The decrease in sales tax payment This economic sector will significantly affect the budgets of the county's cities, such as the city of Santa Monica, which is highly dependent on these tax revenues.
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The estimates of SCAG point out that the economic recovery will be slow and will be reflected from 2021.