Jobless claims across New York are spiking as the coronavirus forces restaurants and bars to lay off employees en masse.
The strict limitations imposed on bars and restaurants during the public health crisis are impacting the more than 300,000 people who work in the industry in New York City, about 7% of the overall labor force.
The number of people who have tested positive for the virus has surged in New York City this week withas of Friday, according to Mayor Bill de Blasio. There are now at least 7,102 infections across the Empire State and at least 35 deaths, according to Gov. Cuomo. "The demand wasn't there," he said. "Everyone was afraid of delivery guys giving them coronavirus, people were afraid of takeout food, so it was like why bother?"
Though the future is uncertain, Lee plans to reopen and bring his employees back when the economic turmoil settles. Now he's looking to the government to help him survive what amounts to an indefinite, state-mandated shutdown. New York state is waiving interest and penalties on late sales tax payments for business owners like Lee. He is also going to"I'll basically be working for government," Lee said.
Saggio, an Italian restaurant in Washington Heights, has shifted to takeout and delivery as many businesses shutter completely."These are human beings who I care deeply about and who I have literally shared my home with before," Castelli said. "I've given half of them personal loans in good times because they needed an air conditioner or something, so of course they know they can come to me in bad times.
Claims have increased more than 1,000% in some areas in the state, according to Deanna Cohen, deputy director of communications at the New York State Department of Labor. The volume has increased as the state waives the seven-day waiting period to receive benefits. The unemployment office received 475,000 calls on Friday alone, Cohen said.
Lee offered to pay advances to Keck and his other employees. Keck declined because she knew finances were tight for Cabrini and there are other employees who need the money more. Lee said several employees left the city and went back to their homes in Pennsylvania, New Jersey, Missouri and elsewhere until the situation stabilizes.
"It breaks our hearts but we really have no other choice," Irish said of the layoffs. Carryout and delivery isn't a sustainable model over the long term, he said, but it at least lets him and his partners keep some of the staff employed.
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