San Diego Feeling the Economic Implications of COVID-19

Written by Michael Palomba

The number of people who filed for unemployment last week skyrocketed to 3.3 million, the highest in the country’s history.

Unfortunately, San Diego is not immune to the economic effects of COVID-19, and so far nearly 6,000 San Diegans have been laid off. According to San Diego Workforce Partnership, that number could be 60 times higher. 

From the agency’s website: “As a result of the COVID-19 pandemic and the social distancing required to prevent its spread, workers in seven of the ten occupations with the most jobs in San Diego County are at high risk of immediate layoffs, reduced hours and/or long-term displacement. In the first three days of partial closures (March 16-18), Californians submitted 190,000 unemployment insurance claims—more than quadruple the weekly average—and the March 19 statewide order to shelter in place will bring more layoffs.”

The agency also mentions that if people lose their jobs in the short term, without any relief, they will stop spending money—which will further disrupt the economy. 

To bring some relief, President Trump signed a $2.2 trillion stimulus bill on Friday. The bill, among other things, will provide $1,200 to individuals and $2,400 to couples—under the income thresholds of $75,000 and $150,000, respectively. The legislation does phase out the cash relief once an individual filer has an income of $99,000, or $198,000 for a couple. In addition, it will drastically increase unemployment benefits to a maximum of $600 per week for four months.

Relief isn’t exclusive to the federal level, as San Diego elected officials are trying, too. The San Diego City Council just recently passed a moratorium on evictions—as did the County Board of Supervisors—and several local officials are trying to get residents an emergency extension on property tax payments.

On Tuesday, The Great American Takeout Day, San Diego City Councilman Chris Cate reminded San Diegans to support local businesses and strengthen the community.

These are trying times, to say the least. For those who can, supporting local businesses can go a long way to sustaining the San Diego economy and keeping our community intact.