By Mike Sunnucks | Rose Law Group Reporter
COVID-19 and its economic impacts threaten as many as 1.2 million jobs regionally and could hit Arizona’s economy with 8 to 13 percent GDP drop depending on whether there are additional outbreaks and closures.
The Tempe City Council will be briefed on the impacts of the pandemic during its meeting tomorrow by the Greater Phoenix Economic Council and economists from Arizona State University.
The presentation outlines a potential 8 percent GDP drop in the second quarter if the virus is contained and the curve of cases flattens. A larger 13 percent GDP drop could occur if the the Coronavirus returns both locally and in and other markets.
As many as 1.2 million jobs are vulnerable to the pandemic regionally. Most of them (76 percent) are in lower-wage and service sectors such as food service, hotels, customer service and retail, according to the report.
Those jobs on average pay less than $40,000 per year.
There have already been significant and at least temporary jobs losses in retail, events, restaurants and tourism related businesses.
There have been 73,739 small businesses are being helped so far by the Paycheck Protection Program under the CARES Act economic stimulus program passed in response to COVID.
The full report can be found here: