As the federal government continues to negotiate another round of fiscal stimulus, chances are you have heard the term “K-shaped recovery” thrown around. The issue became a common talking point during last year’s presidential election as some candidates discussed their plans to heal the economy. But what exactly is a K-shaped recovery and what does it have to do with the economy?
Variations Across Industry, Region, and Income
AS FLORIDA APPROACHES THE ONE-YEAR MARK SINCE THE STATE REPORTED ITS FIRST POSITIVE COVID-19 CASE, Florida’s recovery picture seems to be a mixed bag. The state closed out 2020 on an optimistic note as unemployment inched downward to 6.1 percent from a high of 13.8 percent in April 2020, but as January 2021 drew to a close, first time jobless benefit claims rose by more than 71,000 across the state.
As Florida continues to deal with the constantly changing COVID-19 pandemic, questions remain as to how the state will reverse one of the worst recessions in history while at the same time maintaining prudent public health and safety measures. The difficulty lies in the unequal manner in which the virus has wreaked havoc on the state’s various economic sectors. Due to the varied effects, understanding the nature and scope of each sector’s unique pandemic challenges is crucial to providing substantive policy recommendations going forward.
As the impacts of the COVID-19 pandemic continue to be felt by Florida’s businesses, non-profits, schools, colleges and universities, and healthcare providers, employers of all types are fearful of keeping their business open or reopening their business because of the threat of opportunistic, predatory, and expensive litigation resulting from alleged exposure to COVID-19 when they are taking proper precautions.
AS WE CLOSE OUT A TUMULTUOUS YEAR for Florida, defined by COVID-19 and its resulting disruptions to everyday life, we consider what may lie ahead for Florida’s economy in 2021. If there’s one thing assured for next year, it is that much economic uncertainty will persist against the backdrop of a constantly changing pandemic. Yet with several promising vaccines on the horizon and gradually improving labor market conditions, Florida looks poised to undergo the slow but steady process of economic rebuilding over the coming year.