How will Colorado’s economy weather the COVID-19 storm? Is the current Federal stimulus package enough? How quickly will Colorado’s economy bounce back?
On April 3, John Ferrugia spoke with leading economists and a tax specialist to assess thestatewide economic outlook. One thing was clear, experts don’t anticipate the economy rebounding asof April 30th when the Federal social distancing guidelines are scheduled to end. One expert said it could “take up to 18 months before we see the crisis resolved”. Although the Federal government is providing “unprecedented payments and benefits” - including sick leave enhancements, payments to families,and billions of dollars to employers who have less than 500 employees - experts speculate that it won’t be enough, anticipating another stimulus package will likely be required in another 4 to 6 months.
Understanding Colorado’s Unemployment claims might shed some light on the industries that are being hardest hit and the state analyzes those numbers weekly. Trends indicate that tourism, restaurants and salons are being hardest hit, along with businesses that rely on people congregating, like bars and sporting events. However, there are several industries that are actually showing gains right now, including high tech and healthcare.
Consensus is that Colorado’s economy is resilient and is likely to bounce back quickly. Before the crisis, Colorado boasted the highest rate of at home workers in the country - 8.6% of the workforce over 16 worked from home. This gave Colorado a head start into the new reality that now has most employees working from home.
The round table included:
Greg Berger, Tax Attorney, Brownstein Hyatt Farber Schreck
Patty Silverstein, President & Chief Economist, Development Research Partners
Alexandra Hall, Chief Economist, Colorado Department of Labor and Employment
The panel recommends the following resources for businesses:
Colorado Department of Labor & Employment Information and Resources on Coronavirus: https://www.colorado.gov/pacific/cdle/information-and-resources-coronavirus
Unemployment Information & FAQ: http://Coloradoui.gov
Small Business Opportunities: https://www.bhfs.com/insights/alerts-articles/2020/opportunities-for-small-business-in-the-cares-act-of-2020