Running tally on Collateral Damage from NY Executive Order 202
May 22, 2020
New York State on PAUSE
- Studies report that 100,000 small businesses will not reopen as of May 15th, resulting in millions of job losses.
- Facebook survey of 86,000 small and medium size business reported that 33% of the businesses will not be able to reopen and 55% won’t hire the same workers. 
- JCPenny, a 118 year old company with 846 stores and 90,000 employees, filed for bankruptcy on May 15th, 2020. 
- Diamond Offshore, a company that reported $981 million in revenue in 2019 and employed 25,000 workers filed for bankruptcy on April 26, 2020. 
- Frontier Communications, a company that reported $8.1 billion revenue in 2019, filed for bankruptcy on April 14, 2020. 
- Gold’s Gym, a fitness chain that operates 700 gyms around the world, filed for bankruptcy on May 4, 2020. 
- Crew, an apparel giant that employed 10,000 workers, filed for bankruptcy on May 4, 2020. 
- Neiman Marcus, an apparel company that employed 14,000 workers, filed for bankruptcy on May 7, 2020. 
- Airbnb is laying off 25% of its workforce. 
- Hertz is laying off 26% of its workforce 
- United Airlines expects to lay off at least 30% of its workforce. 
- Uber is laying off 14% of its workforce 
- Lyft is laying off 17% of its workforce. 
- Boing is laying off 10% of its workforce. 
- Cirque du Soleil is laying off 95% of its workforce. 
- Fed reserve Bank of Atlanta is projecting GDP down 42.8 % in Q2.
- Retail sales down 16.4 % in April.
- New real estate listings down 47% in April
- New car sales down 10%-20%. 
- Factory output down 13.7% in April - worst output decrease in history.
- US industrial production fell 11.2% in April - worse number in 101 years.
- 5 million Americans have filed for unemployment as of May 15th - Great Depression peaked at 15 million.
- According to the Federal Reserve of Chicago - real rate of unemployment in the US is 30.7 %.
- 42% of jobs lost during the pandemic will end up being permanent.
- 40% of households with income of 40K or less say they have lost a job during the shutdown.
- According to the University of Chicago- 68% of the unemployed are eligible for unemployment. Wages greater than what their lost earnings - average is 134% of previous wage.
- Supplemental $600 per week relief id set to expire in July.
New York State:
- 8 Million Unemployment claims. Buffalo
- 4 billion in payment first 7 weeks of the lockdown – roughly 6 times the number of claims during the 2008 financial crisis.
- A Study by Columbia University suggests a 45% rise in the US homeless population
Commercial Real Estate
- Many are predicting a commercial real estate implosion.
- Median list prices are at their slowest growth in seven years. 
- Andrew Cuomo said that New York will report a $13.3 billion shortfall in revenue compared with its original forecast — representing a 14% decline in the state’s projected receipts – April 24.
- The Empire State, which has been hit harder by the coronavirus pandemic than anywhere else in the U.S., currently forecasts a fall in revenues of $61 billion between fiscal years 2021 and 2024
- An assessment done by the Boston Consulting Group predicts the state’s economy will lose a staggering $243 billion over the course of the pandemic and the economic recovery, or 14% of the state’s gross domestic product. The recovery will be longer than the Great Recession of over a decade ago.
- The financial report also predicts that the state will have to slash $10.1 billion from the current budget, leading to over $8 billion in cuts to schools, health care providers, and local governments.
- Up to 154,037 Americans impacted by the Government’s response to COVID response are projected to die from drugs, alcohol, and suicide.
- Two of the three main factors in increasing deaths of despair during COVID-19 are economic failure with massive unemployment and mandated social isolation for months and possible residual isolation for years.
- Pronged use of face masks during work leads to discomfort that interferes with employees’