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economists polled by The Wall Street Journal was U.S. GDP Houston’s struggles can also be seen in other indicators:
would shrink another 32.3 percent in Quarter 2 of 2020.
The nation already hemorrhaged 21.4 million jobs. 0 The Houston Purchasing Managers Index (PMI) fell to
As it turns out, the U.S. economy shrank 31.4 percent in 34.6 in April, which is the lowest reading on record.
Quarter 2 of 2020, job losses were revised upward to 22.4 Readings above 50 indicate expansion of the overall
million, and as of mid-May ’20, over 21.0 million Ameri- economy, below 50 means there is a contraction of the
cans were receiving some form of unemployment benefits overall economy.
compared to 1.6 million in May the
year before.

But This Time Was Different
Unlike past recessions, the COVID-
19 recession was not due to economic
factors, like a hike in interest rates
meant to control inflation (early 1980s)
or the bursting of an asset bubble
caused by falling home prices (2008-
2009). The COVID-19 recession started EMPLOYER
when state and local governments BENEFIT SERVICES
mandated that schools and businesses
shut down to contain the spread of
the virus. It was as if elected officials
had flipped the proverbial switch, and
the lights went out on the economy.
In February, the nation was enjoying
the longest expansion in U.S. history.
By April, the nation was in the deepest
recession since the Great Depression. PLAN PAYROLL BENEFIT
As quickly as they acted to shut ADMINISTRATON MANAGEMENT PACKAGE
down the economy, government Assistance and research Get your employees MARKETING
officials, believing the economic costs to keep you informed paid quickly so you Document
far outweighed the social benefits, and in compliance with can get back to doing administration of
what your company
401(k) and 403(b)
state and federal laws.
allowed the economy to partially does best. including employee
reopen. Restaurants and bars were enrollment assistance.
serving customers again but at
reduced capacity. GDP rebounded
quickly. Job growth surged initially
but then tapered off.

HOUSTON’S RESPONSE

Houston, like the rest of the world,
took dramatic steps to contain the
BENEFITS
HUMAN
CLAIMS
spread of the virus. This began with MANAGEMENT RESOURCES EDUCATION AND
shutting down the Houston Livestock When a claim is CONSULTING CONSULTING
Show and Rodeo eight days into a made, we assist in the Develop policies and Cra a competitive

three-week run. By the end of March, process, from the first procedures, address employee benefits plan
recruiting strategies,
to recruit and retain
“Stay Home, Work Safe” became filing of the claim to its develop job descriptions. valuable employees.
resolution.
the local mantra. The region shed
361,400 jobs in March and April
2020, one in every nine jobs in Hous-
ton. The losses hit every sector of the PUTTING ALL THE HEALTHCARE
economy but were especially steep BENEFIT PIECES TOGETHER
for health care, restaurants, bars, OFFICE
hotels, retail, the arts, and recreation. 713-647-9700 ONLINE
www.corebenefits.net
As of April 2021, Houston had only
recouped 52 percent of the jobs lost.
NBIZ ■ June 2021 15