In this blog, Dr. Chris Chmura unpacks Q3 2020 data on GDP, income, spending, and wages. Although many economic trends are pointing toward sprouts of growth, the resurgence in cases of coronavirus around the globe remains a risk to short-term growth as we wait for a vaccine.
It is an important time of year for retailers as holiday sales represent about 20% of the retail industry's total sales. But the typical signals forecasters use to predict holiday sales are not very helpful during this COVID environment.
Regardless of when the vaccine is widely distributed, the type of people most affected are those with less education. This is because jobs linked to the retail, recreation and hospitality sectors typically require in-person work and often only require a high school degree.
Working from home was already becoming more common, but the COVID-19 crisis forced many employers to quickly alter policies to enable more workers to perform their jobs from home. This forced experimentation with remote work is causing some employers to alter their policies permanently.