- Coronavirus Will Wipe Out These Three Industries For Good
- Blacklisted Industry #1: Movie Theaters
- Blacklisted Industry #2: Department Stores
- Blacklisted Industry #3: Office Space Operators
- Possible US Election Impacts on the Technology and Healthcare Sectors
- Podcast Legal Language:
- What Are the Risks?
- 2020 presidential election impacting the supermarket industry
- Joe Biden (Democrat)
- Donald Trump (Republican)
- Occupations Hit Hardest in 2020 by the Pandemic
- 3. Travel and transportation jobs
- 4. Construction jobs
- 5. Motion picture and music industry jobs
- 6. Laundry, dry-cleaning, other personal service jobs
- 7. Self-employed workers
- 8. Jobs manufacturing food, clothing and other goods
Coronavirus Will Wipe Out These Three Industries For Good
Moment Editorial/Getty Images
From No. 1. to BANKRUPT. In less than two years.
My uncle used to be a chef in Australia’s top restaurant, Banc. The place was always packed. Regular customers included media mogul Rupert Murdoch and former Soviet Union President Mikhail Gorbachev.
And it was run by top Irish chef Liam Tomlin. Lots of Banc’s customers were international businessfolk in town for work. And this was the place to go if you wanted to impress clients.
But then disaster struck. After the September 11 terrorist attacks, air travel ground to a halt. Banc went from Australia’s most-exclusive restaurant, to bankrupt in less than two years.
I share this story because it drives home a powerful lesson in disruption. You see, my goal is not only to help you profit from disruption. You must also avoid being caught on the wrong side of it.
And that’s more important today than ever before. As I’ve been saying, we’re in one of the most disruptive periods in history right now. The coronavirus has come through and absolutely annihilated some of today’s biggest industries.
Take the airline industry, for instance. CNN reports global airlines could face a $113 billion hit from the coronavirus.
Boeing (BA) went from world-dominator to pleading for a bailout in a matter of weeks. But here’s the thing. We all know airlines will eventually bounce back when this pandemic is finally over. It’ll definitely be a long grind higher… but airlines will survive.
Others won’t be as lucky. Fact is, for many industries, this crisis will prove to be the final nail in the coffin. These industries will NEVER return to what they once were.
Knowing the difference between which ones will eventually come back—and which ones have been wiped out for good—is crucial right now.
Put your money on the wrong side of this disruption, and it’ll cost you thousands. That’s why today, I’m BLACKLISTING three industries.
Blacklisted Industry #1: Movie Theaters
Filmmaker Universal recently detonated a nuclear bomb in Hollywood. Its kids film Trolls 2 became the first mainstream movie to be released online, skipping movie theaters. Families can stream it at home for 20 bucks.
Disney followed suit, releasing its latest hit Onward “digitally” last Friday. This is FAR more disruptive than most folks realize.
Movie theaters have always held an exclusive window for film releases. They demand 90-day, exclusive rights before the movie can be shown elsewhere. In short, this is how they make money.
Filmmakers have toyed with releasing films online, but theaters always blocked it.
In 2011, Universal tried to release the film Tower Heist online when it was still in theaters. Cinemark (CNK), America’s second-largest theater chain, said it wouldn’t book the film if it was released elsewhere.
With movie theaters shut down across the country, it’s forced filmmakers to pull the ripcord and release movies online.
And this isn’t a one-off. Universal said it would no longer give theaters an exclusive period after the lockdown ends.
My friends, this is the end for most movie theaters. Theaters were struggling before coronavirus. According to data from Box Office Mojo, in 2019, Americans went to the movies less than any time since the 1920s.
Losing their exclusive window is a death sentence. Millions of folks will choose to watch movies at home instead. Five years from now, theaters will be record stores.
In fact, the world’s largest theater company AMC (AMC) entered bankruptcy talks earlier this week. AMC and its competitors have all plunged 75%+ in the past few years:
Blacklisted Industry #2: Department Stores
Macy’s (M) has crashed 60% since January. It’s now trading at an all-time low. In fact, it’s been beaten up so much that it’s been pulled from the S&P 500 Index! The company is now worth less than $2 billion—which is considered too small for the index.
Last month, Macy’s got “demoted” to the S&P 600 Small Cap Index. But however you classify it, one thing is clear: Macy’s is dead. And it’s not the only one.
As I’ve mentioned before, physical stores Macy’s have been whipping boys for online disruptors over the past few decades.
Coronavirus will be the final nail in the coffin for those still standing. Thousands of shops simply won’t reopen their doors after the lockdown.
Here’s the thing… online sales have shot up 450% since 2007. But a vast majority of dollars are still spent in physical stores, as you can see here:
But the lockdown is forcing many Americans to buy stuff online for the first time ever. This is especially true for older folks, who are most vulnerable but least ly to shop online.
I imagine millions of folks are having an epiphany right now. They pressed a button and a parcel showed up on their front porch a few days later. They’ll ask themselves, “Wow, this is so handy. Why haven’t I always done this?”
Coronavirus has opened the floodgates for online shopping. Retailers Macys, Gap (GPS), Nordstrom (JWN), Kohl’s (KSS), Bed Bath & Beyond (BBBY), and Footlocker (FL) all look they’re headed for bankruptcy.
Blacklisted Industry #3: Office Space Operators
I got a call from a good friend over the weekend. Trevor owns a haulage company in San Francisco.
He mainly works with small-to-medium sized firms and was chatting with the CEO of a business with 400+ employees last week. He told Trevor their current “remote working” setup is going so well, he’s not renewing his office lease when it expires.
Mark my words: Coronavirus is a game changer when it comes to working-from-home.
This crisis has forced the world into a mass experiment. Tens of millions of us are working from home for the first time ever.
It’s changing an entire generation’s view on what can be done remotely. After months of working from home, folks will realize they’re just as productive.
They’ll question why they need to commute to the office every day. And working remotely, say, two or three days a week will become the new normal.
In fact, when asked about remote working, ’s chief HR officer told CNBC: “I don’t think we’ll go back to the way we used to operate.”
Here’s the thing. It’s not that offices will be totally empty. But the number of folks working from home is going to surge. And when 30% of your office is empty every day, CEOs will look to cut rents.
For example, the CEO that Trevor chatted with said remote working will save the company $10 million a year in rent and expenses!
This shift is a huge blow for companies that own and operate office space CBRE Group (CBRE) and Boston Properties (BXP).
Buying up swanky offices in cities New York and San Francisco has been a sure bet for decades. This trend will reverse as remote working “sticks” long after coronavirus.
Get my report “The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money”. These stocks will hand you 100% gains as they disrupt whole industries. Get your free copy here.
Possible US Election Impacts on the Technology and Healthcare Sectors
Stephen Dover: Grant…there's a lot of news on this upcoming election and of course we don't know how it's going to turn out. How do you plan for this upcoming election?
Grant Bowers: Well, I think investors should really remember that while this is a very important election cycle and will have significant implications on our society and our economy, ultimately markets and the economy or economic growth are driven by fundamentals. A big part of that is going to be corporate profits.
Think about investing in high-quality businesses that can endure economic volatility, good balance sheets, strong cash flow, and ultimately businesses and companies we believe are exposed to many of these really truly sort of multi-decade long secular trends and themes.
Because to us, when we are active investors and navigating the market, we're trying to think about our portfolios truly in the sense of out three, five or 10 years and not necessarily about the next one or two quarters. And we think that's the recipe for success.
And so we really do encourage investors to think long term and use any of the volatility we might get around the election as an opportunity to really take advantage of good prices on great companies that were going to be around for a long time.
Stephen Dover: What is your view on how the upcoming election might affect the healthcare sector?
Grant Bowers: Well, we continue to be very positive on the healthcare sector broadly. We don't see any really meaningful changes to that positive outlook. Biden has come out and said, you know, he wants to expand coverage for people.
He wants to increase consumers' ability to access healthcare inexpensively. He has endorsed a private option, but as well as some public option, many times the market will be fearful of this idea of a public option, the idea of Medicare for all. And the idea that we could see a true sort of public takeover of healthcare.
We see that as a very remote possibility out there, but as something the market is going to continue to be very concerned about in the future. You know, I would say another big topic in healthcare that we're always paying attention to is drug price regulation.
And it will be probably the number one or number two, topic within healthcare as we come into the election and even post the election. It could have tremendous impact on pharmaceutical as well as biotech sectors.
Right now, we don't see anything that is that alarming, but as something we're really going to be monitoring closely because the impact could be quite severe, if we saw it a true change in the way drugs are priced and sold here in the United States.
Stephen Dover: One of the biggest stories this year for equity investors has been the dominance and performance of the FAANG [, Amazon, Apple, Netflix and Alphabet] stocks—those eight or 10 technology stocks that have dominated the performance of the market. What impact do you think the elections might have on technology stocks?
Grant Bowers: Yes. I mean, tech has really been front and center, not just in the market and driving the market overall, but it has really been front and center on a lot of the political and policy issues in the market.
So, we've seen things the tensions with China and the trade issues, and this idea of protecting intellectual property. The idea of holding on to technology advantages that we may have here in the US in protecting US companies.
Our view is that, clearly if Trump is reelected, that these policies and posture will continue.
But our belief is also that if Biden is elected, that he will not let up and he will essentially push forward as this has become a very widely accepted bipartisan issue to keep pressure on competition within tech, globally.
And we think that that many of the Chinese trade tensions are really here to stay and that this is part of, sort of the new normal within markets. And we shouldn't look at them as one-off events.
It's really going to be the status quo going forward.
You know, the other topic you mentioned, which is I think, front and center, as well is the FAANG stocks. The potential for regulation of these companies probably increases under a full Democratic sweep.
We believe that while there may be changes to their business models around the margins and possibly some concessions to appease some of this regulatory pressure, that the fundamental backdrop of these businesses is still incredibly strong and the businesses are very strategically important to the US as technology is really sort of how we project power now globally.
And so, the big FAANG stocks are a big part of that power structure and too much regulation could actually really change that. And I think that's not in the US best interest longer term.
Stephen Dover: Two issues that both sides of the aisle agree on is being tough on China and trying to bring manufacturing back home to United States. What are the implications of that for investors?
Grant Bowers: Our sense is that the COVID-19 pandemic has really exposed a lot of weaknesses in supply chains and global supply chains, particularly within healthcare, but also within other sectors, throughout industrials and manufacturing.
And as we look forward and think about how CapEx [capital expenditure] is going to be spent and how supply chains are going to be built and structured over the next three, five, 10 years, we are big believers that we will continue to see reshoring here back into the US and a bolstering of the US manufacturing capacity across many different industries. So, while I think that this is something that is purely a business and an economic decision that many companies are making, there is definitely going to be a political side of it as the policies put in place really look to bring back jobs and shore up the middle class here in the US. And a big part of that is going to be this idea of reshoring businesses and reshoring manufacturing back to the US and I think it's going to continue. In our discussions with many companies, this is probably not something that really starts to build up steam until we're really through the COVID-19 pandemic. So, we're probably looking at a 2021 or 2022 type of story, but probably has legs and lasts for three, five, or even 10 years as we migrate down that path.
Stephen Dover: Another area that both Democrats and Republicans seem to agree on is increases in infrastructure spending, although the Democrats seem to push more of the Green Plan and Republicans tend to push more traditional infrastructure spending on roads. What do you think about infrastructure spending and how that might affect investing?
Grant Bowers: Yeah, I think no matter which party is in charge of the next four years, infrastructure spending is definitely something that's going to be front and center. It's been a bit surprising to us.
I think that we haven't been able to push through a major infrastructure plan over these last four years.
If you would've asked me back in 2016, I would've said that was one of the number one priorities, and we would, should expect to see it.
As we move forward, I still have a lot of confidence that we're going to see an infrastructure plan and while different parties may direct it differently, I think both sides will include a lot of roads and bridges, they will include airports and the pieces that makes this country move, clean energy and alternative energy will be a big part of any Democratic side. But one of the points that I think is really important to think about—an area that often doesn't get talked about—is this idea that, what is infrastructure and where should new infrastructure dollars be spent in the US?
Well, our sense and our research says much of that is going to be spent on technology.
Technology infrastructure is really in many ways, replacing sort of the old line traditional, what we think of as infrastructure—so access to broadband, 5G [fifth generation] wireless infrastructure, data infrastructure is all going to be a big part of any infrastructure plan.
So, it's actually kind of interesting, and many investors don't think about this way, but we really do think that any big infrastructure plan is going to have a lot of capital that flows to technology infrastructure and projects.
Stephen Dover: Grant, I think that's an excellent point.
A lot of people think of infrastructure spending in terms of roads and bridges, but of course it's going to affect a lot of different industries, including technology and perhaps even affect the movement of people, if manufacturing goes back to the Midwest, maybe there'll be a boom in the Midwestern United States.
Grant, thank you so much for your insights about the upcoming elections and how investors should think about them.
Grant Bowers: Stephen, thank you for having me here today. It's been a great conversation.
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Podcast Legal Language:
This material reflects the analysis and opinions of the speakers as of September 17, 2020 and may differ from the opinions of portfolio managers, investment teams or platforms at Franklin Templeton.
It is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy.
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Statements of fact are from sources considered reliable, but no representation or warranty is made as to their completeness or accuracy.
What Are the Risks?
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
The technology industry can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants as well as general economic conditions.
Investments in fast-growing industries, including the technology and healthcare sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments. Investments in infrastructure-related securities involve special risks, such as high interest costs, high leverage and increased susceptibility to adverse economic or regulatory developments affecting the sector.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.
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2020 presidential election impacting the supermarket industry
With a global pandemic ongoing and the U.S. economy struggling to get back on its feet, the stakes in the upcoming presidential election couldn’t be higher.
Republican incumbent President Donald Trump is being challenged by Democrat and former Vice President Joe Biden in what has been a sharply polarized campaign.
Key issues that will impact the supermarket industry include topics the workforce, immigration, healthcare and — perhaps most importantly — the nation’s response and recovery from the most deadly health crisis since the Spanish Flu, and the impact of COVID-19 on the economy.
Most Americans will have already cast their vote by Nov. 3, though we may not know the results that night. Because of the pandemic, more Americans are expected to vote by mail and some states allow ballots to be counted if they arrive within a certain period after Nov. 3.
Though election season has been filled with drama and more October surprises are expected, here’s a look at the two candidates and their basic positions on issues tied to the grocery industry.
Joe Biden (Democrat)
Economic aid for businesses impacted by COVID-19 is a significant part of Biden’s seven-part coronavirus recovery plan. He would establish a small-business fund to ensure that mom-and-pop businesses could have equal opportunities for relief, arguing that larger corporations have already taken advantage of the Trump administration’s stimulus programs.
“President Trump’s corrupt economic response has routinely favored corporations over small businesses and largely shut out minority business owners from COVID-19 recovery funds,” the Biden platform says.
His fund would be a “restart package” to help businesses hire back and retrain employees and would provide grants to cover the costs of expensive protective gear and plexiglass barriers.
Biden’s federal grant programs would also specifically target minority-owned businesses to ensure that they have “effective access to all of these tools, as well as access to technical assistance — such as accounting support and legal advice — so that they are not shut federal aid programs.”
He also supports a nationwide mask mandate, as well as rapid testing, protective gear and federal funding for workplaces and schools.
Biden supports raising the federal minimum wage to $15 per hour and eliminating the federal tip credit, under which tipped workers can earn as little as $2.13 an hour in cash wages. In 2015, Biden successfully lobbied for a minimum wage increase in New York State.
“He firmly believes all Americans are owed a raise, and it’s well past time we increase the federal minimum wage to $15 across the country,” Biden’s campaign website says.
“This increase would include workers who aren’t currently earning the minimum wage, the farmworkers who grow our food and domestic workers who care for our aging and sick and for those with disabilities.
As president, Biden will also support indexing the minimum wage to the median hourly wage so that low-wage workers’ wages keep up with those of middle-income workers.”
The issue of raising the minimum wage has been a thorn in the side of (much of) the supermarket industry for years, but the $15 federal minimum wage is already on the books in seven states and one federal district.
Biden hopes to build and expand on Obamacare, adding a Medicare for All public option to the Affordable Care Act as a compromise on single-payer healthcare plans proposed by the more progressive wing of the Democratic party.
“If your insurance company isn’t doing right by you, you should have another, better choice,” Biden’s campaign website said.
As with Medicare, the Biden public option aims to reduce costs for patients by negotiating lower prices from hospitals and other healthcare providers.
It also promises to better coordinate among all of a patient’s doctors to improve the efficacy and quality of their care and cover primary care without any co-payments.
And it will bring relief to small businesses struggling to afford coverage for their employees.
Biden, however, proposes strengthening employer mandates, including providing “legally mandated benefits and protections” to so-called gig-economy workers delivery drivers, instead of classifying them as independent contractors.
Biden also supports employer mandate requiring 12 weeks of paid family and medical leave for all workers “for their own or a family member’s serious health condition,” and/or to recover from childbirth, spend time with their newborns, or to care for a sick relative.
Biden has pledged to end workplace immigration raids workers’ status so they don’t have to be worried about getting detained or deported when they’re trying to make a living.
“The first 100 days of my administration, no one will be deported at all. From that point on, the only deportations that will take place are commissions of felonies in the U.S.,” Biden said during the 11th Democratic primary debate in March.
A Biden administration would also safeguard against “wage cuts due to the exploitation of foreign workers” by ensuring that employers are not legally allowed to hire undocumented workers below market rate.
“We must ensure that every worker is protected, can join a union and can exercise their labor rights — regardless of immigration status — for the safety of all workers,” his platform says.
Other workforce issues
On labor unions: A Biden administration would encourage and incentivize the use of labor unions and “check the abuse of corporate power over labor and hold corporate executives personally accountable for violations of labor laws,” as well as expand workplace protections, pay and benefits for workers.
Emergency unemployment: Biden supports expanded emergency compensation for workers in affected industries that are facing extended spells of unemployment.
Scroll up or down on the photo to see an overview of each candidate's positions.
Donald Trump (Republican)
Un in previous presidential election cycles, the Republican Party did not create a new policy platform for the 2020 election.
Without convening its platform group this year, the Republican National Committee unanimously voted to “reassert the party’s strong support for President Donald Trump and his administration” and endorsed the 2016 platform.
“The 2020 Republican National Convention will adjourn without adopting a new platform until the 2024 Republican National Convention,” the party said.
The COVID-19 pandemic was declared a national emergency in March, and Trump has touted his record for dealing with the deadly novel coronavirus.
Since the spring, Congress has passed a series of bills offering roughly $3 trillion in aid, including the creation of the Paycheck Protection Program and other disaster loans to help businesses.
But the PPP program expired at the end of July, and Trump’s stance on more relief for the deeply impacted restaurant industry was somewhat muddled at press time.
In early October, after he was released from Walter Reed Medical Center after contracting the coronavirus himself, the president said via that he was calling off negotiations on more relief beyond the summer packages.
Trump later said he would approve narrowly drafted legislation on a new round of the Paycheck Protection Program and perhaps another round of direct stimulus checks.
But three days later, on Oct. 9, he stated: “Covid Relief Negotiations are moving along. Go Big!”
In mid-October, observers were skeptical Congress and the president would approve any more stimulus before the Nov. 3 election.
The pandemic’s impact on the economy has been historic, in terms of job losses, unemployment and gross domestic product. The National Bureau of Economic Research determined that a peak in monthly economic activity occurred in the U.S. economy in February 2020, marking the end of the longest recorded U.S. expansion, which began in June 2009.
The U.S. GDP has experienced two consecutive quarters of declines, and the second-quarter decline was the steepest ever: 9.1%
The Republican Party’s 2016 platform states that any increase in the federal minimum wage, which has stood at $7.25 an hour since 2009, should remain a local and state issue.
Trump indicated before his election that he would consider a $10-per-hour federal minimum wage and in an interview with Telemundo in 2019 indicated he might consider a $15-an-hour minimum.
However, the president has not made a formal proposal on the minimum wage.
The GOP platform stands firmly for the repeal of what it calls the “dishonestly named Affordable Care Act of 2010.”
The president has repeatedly said he would replace the ACA with an improved version, but no proposals have been put forward in the past four years.
In the wake of the pandemic, Congress and the president approved the Families First Coronavirus Response Act, which requires certain employers (those with 500 or fewer workers) to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.
The Department of Labor’s Wage and Hour Division administers and enforces the new law’s paid leave requirements. These provisions apply through Dec. 31.
“Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child-care unavailability if the leave requirements would jeopardize the viability of the business as a going concern,” the Labor Department said.
The GOP and Trump have not indicated what support, if any, they would give to extending the sick leave or family leave.
Trump has taken a hard line on immigration, especially during the COVID-19 pandemic.
In April, the president tweeted: “In light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens, I will be signing an Executive Order to temporarily suspend immigration into the United States!”
He issued orders on April 22 and again on June 22 that suspended or limited immigration into the United States as the economy recovered from the pandemic lockdowns. The latter order will expire on Dec. 31 “and may be continued as necessary.”
“In the administration of our nation’s immigration system, we must remain mindful of the impact of foreign workers on the United States labor market, particularly in the current extraordinary environment of high domestic unemployment and depressed demand for labor,” the president said in the June order.
“Historically, when recovering from economic shocks that cause significant contractions in productivity, recoveries in employment lag behind improvements in economic activity,” he noted.
“This predictive outcome demonstrates that, assuming the conclusion of the economic contraction, the United States economy will ly require several months to return to pre-contraction economic output, and additional months to restore stable labor demand.”
Trump said he had “determined that the entry … of certain aliens as immigrants and nonimmigrants would be detrimental to the interests of the United States.”
Other workforce issues
The GOP 2016 platform cited employment-enhancing legislation for people with disabilities and military veterans, but it steered clear of other employee-related proposals such as sick leave and family leave.
Occupations Hit Hardest in 2020 by the Pandemic
- Unemployment rate, December 2020: 13.1 percent
- Unemployment rate, December 2019: 3.8 percent
- Year-over-year increase: 9.3 percentage points
Sudden and widespread shifts in demand affected these occupations in 2020.
For example, with businesses temporarily closed for public health reasons, people weren’t driving as much and the demand for gas dropped in some regions. Companies in these industries responded to the uncertainties by laying off or furloughing workers in support positions.
There were nearly 58,000 fewer workers in these roles in December 2020 than there were one year earlier.
3. Travel and transportation jobs
- Unemployment rate, December 2020: 8.4 percent
- Unemployment rate, December 2019: 2.6 percent
- Year-over-year increase: 5.
8 percentage points
The job losses in these fields were fueled by layoffs in the airline and railroad businesses, which were hurt because fewer people felt comfortable traveling this year. There were nearly 116,500 fewer jobs in air transportation in December 2020 than there were one year earlier.
Railroads shed at least 18,900 jobs during that same period. The pandemic also led to layoffs among truck drivers — a career with a fairly high percentage of older workers — because businesses that were temporarily shuttered needed fewer supplies.
4. Construction jobs
- Unemployment rate, December 2020: 9.6 percent
- Unemployment rate, December 2019: 5.0 percent
- Year-over-year increase: 4.
6 percentage points
The big losses in these occupations appears to be among the specialty contractors who work on nonresidential buildings.
That field lost nearly 441,000 jobs between December 2019 and December 2020, due in part to a slowdown in renovations of office buildings as more companies shifted to remote work.
5. Motion picture and music industry jobs
- Unemployment rate, December 2020: 6.4 percent
- Unemployment rate, December 2019: 1.9 percent
- Year-over-year increase: 4.
5 percentage points
It’s hard to make blockbuster movies and TV shows when safety precautions mean you can’t have a large cast and crew on the set. Hollywood lost more than 110,000 jobs between December 2019 and December 2020.
It’s unclear when and if the film industry will recover, as California recently initiated another round of lockdowns to slow the spread of the coronavirus and many movie theaters nationwide remain closed.
6. Laundry, dry-cleaning, other personal service jobs
- Unemployment rate, December 2020: 7.4 percent
- Unemployment rate, December 2019: 3.2 percent
- Year-over-year increase: 4.
2 percentage points
The large increase in the number of people working from home this year led to a big drop-off in the demand for dry-cleaning and laundry services.
Those occupations lost more than 228,000 jobs since December 2019.
7. Self-employed workers
- Unemployment rate, December 2020: 6.7 percent
- Unemployment rate, December 2019: 2.7 percent
- Year-over-year increase: 4.
0 percentage points
While working for yourself can offer the freedom and flexibility that many older adults prefer, it also means you might face challenges finding clients during tough economic times.
The pandemic may have added to the difficulties because it made people wary to meet face to face, a key part of networking for new business for many.
8. Jobs manufacturing food, clothing and other goods
- Unemployment rate, December 2020: 5.5 percent
- Unemployment rate, December 2019: 3.1 percent
- Year-over-year increase: 2.
4 percentage points
Manufacturing jobs often require people to work side by side, a significant hurdle when businesses want their employees to practice physical distancing.
There were several COVID-19 clusters in meatpacking and poultry processing facilities earlier in the pandemic, which may have led some workers to leave the industry.
Apparel manufacturing businesses notably shed jobs. With more people working from home and also not going out at night, the need for new, stylish clothing took a dip.
Editor’s note: This article originally was published on December 17, 2020. It has been updated with more recent data.