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‘We Have Lost It All’: The Shock Felt by Millions of Unemployed Americans ‘We Have Lost It All’: The Shock Felt by Millions of Unemployed Americans
(8 days later)
WASHINGTON — So much has changed so quickly for Joseph Palma that he barely recognizes his life.WASHINGTON — So much has changed so quickly for Joseph Palma that he barely recognizes his life.
On Tuesday last week, he was going to work, helping passengers in the customs area of the Miami airport. The next day, he was laid off without severance or benefits. Five days later, he moved back in with his 59-year-old mother, loading his bed and his clothes into the back of his friend’s pickup truck.On Tuesday last week, he was going to work, helping passengers in the customs area of the Miami airport. The next day, he was laid off without severance or benefits. Five days later, he moved back in with his 59-year-old mother, loading his bed and his clothes into the back of his friend’s pickup truck.
Now he is staring at his bank account — totaling about $3,100 — and waiting on hold for hours at a time with the unemployment office, while cursing at its crashing website.Now he is staring at his bank account — totaling about $3,100 — and waiting on hold for hours at a time with the unemployment office, while cursing at its crashing website.
“I’m feeling scared,” said Mr. Palma, who is 41 and nervous about the $15,000 in medical debt he has from two recent hospital stays. “I don’t know what’s the ending. But I know I’m not in good shape.”“I’m feeling scared,” said Mr. Palma, who is 41 and nervous about the $15,000 in medical debt he has from two recent hospital stays. “I don’t know what’s the ending. But I know I’m not in good shape.”
For the millions of Americans who found themselves without a job in recent weeks, the sharp and painful change brought a profound sense of disorientation. They were going about their lives, bartending, cleaning, managing events, waiting tables, loading luggage and teaching yoga. And then suddenly they were in free fall, grabbing at any financial help they could find, which in many states this week remained locked away behind crashing websites and overloaded phone lines.For the millions of Americans who found themselves without a job in recent weeks, the sharp and painful change brought a profound sense of disorientation. They were going about their lives, bartending, cleaning, managing events, waiting tables, loading luggage and teaching yoga. And then suddenly they were in free fall, grabbing at any financial help they could find, which in many states this week remained locked away behind crashing websites and overloaded phone lines.
“Everything has changed in a matter of minutes — seconds,” said Tamara Holtey, 29, an accountant for an industrial services company in the Houston area, who was on a cruise to Cozumel, Mexico, as the coronavirus outbreak intensified in the United States and was laid off on her second day back at work.“Everything has changed in a matter of minutes — seconds,” said Tamara Holtey, 29, an accountant for an industrial services company in the Houston area, who was on a cruise to Cozumel, Mexico, as the coronavirus outbreak intensified in the United States and was laid off on her second day back at work.
Now she spends her days applying for jobs online from her home in Alvin, Texas, while she and her wife weigh whether to delay paying their mortgage for a month or two — only to have to pay more in interest.Now she spends her days applying for jobs online from her home in Alvin, Texas, while she and her wife weigh whether to delay paying their mortgage for a month or two — only to have to pay more in interest.
“It’s just a constant thought in my head: Am I going to lose my house? Am I going to lose everything?” she said. They had been talking about starting to have children, but “that’s on pause now.”“It’s just a constant thought in my head: Am I going to lose my house? Am I going to lose everything?” she said. They had been talking about starting to have children, but “that’s on pause now.”
In 17 interviews with people in eight states across the country, Americans who lost their jobs said they were in shock and struggling to grasp the magnitude of the economy’s shutdown, an attempt to slow the spread of the virus. Unlike the last economic earthquake, the financial crisis of 2008, this time there was no getting back out there to look for work, not when people were being told to stay inside. What is more, the layoffs affected not just them, but their spouses, their parents, their siblings and their roommates — even their bosses.In 17 interviews with people in eight states across the country, Americans who lost their jobs said they were in shock and struggling to grasp the magnitude of the economy’s shutdown, an attempt to slow the spread of the virus. Unlike the last economic earthquake, the financial crisis of 2008, this time there was no getting back out there to look for work, not when people were being told to stay inside. What is more, the layoffs affected not just them, but their spouses, their parents, their siblings and their roommates — even their bosses.
“I don’t think anyone expected it to be like this,” said Mark Kasanic, 48, a server at a brasserie in Cleveland who was one of roughly 300 workers that a locally owned restaurant company laid off last week. Now he is home-schooling his children, ages 5 and 7, one with special needs.“I don’t think anyone expected it to be like this,” said Mark Kasanic, 48, a server at a brasserie in Cleveland who was one of roughly 300 workers that a locally owned restaurant company laid off last week. Now he is home-schooling his children, ages 5 and 7, one with special needs.
Julian Bruell was one of those who had to deliver the bad news to hourly employees like Mr. Kasanic. Mr. Bruell, 30, who helps run the company with his father, said that only about 30 employees are left running takeout and delivery at two of its five restaurants. He has not been earning a salary, his goal being to keep the business afloat through the crisis.Julian Bruell was one of those who had to deliver the bad news to hourly employees like Mr. Kasanic. Mr. Bruell, 30, who helps run the company with his father, said that only about 30 employees are left running takeout and delivery at two of its five restaurants. He has not been earning a salary, his goal being to keep the business afloat through the crisis.
“If it’s going to July this may not be sustainable,” he said. “I just want us to have a future.”“If it’s going to July this may not be sustainable,” he said. “I just want us to have a future.”
On Thursday, he was planning to file for unemployment himself.On Thursday, he was planning to file for unemployment himself.
In many states, that has been its own wild odyssey. Mr. Kasanic said he had spent hours dialing and redialing four Ohio numbers: three wound through a maze of messages that ended with a dead line and a fourth was always busy. His strategy now is to call at four in the morning.In many states, that has been its own wild odyssey. Mr. Kasanic said he had spent hours dialing and redialing four Ohio numbers: three wound through a maze of messages that ended with a dead line and a fourth was always busy. His strategy now is to call at four in the morning.
“Getting through is nearly impossible,” he said. “I probably tried calling over 100 times to try to get a hold of somebody.”“Getting through is nearly impossible,” he said. “I probably tried calling over 100 times to try to get a hold of somebody.”
Going online has not been any easier.Going online has not been any easier.
“I’ve gone on their website and the site would crash or pages would disappear,” he said.“I’ve gone on their website and the site would crash or pages would disappear,” he said.
He still has not gotten through. But he is trying.He still has not gotten through. But he is trying.
Many described a feeling of sudden economic helplessness that did not match how they saw themselves. In the space of two weeks, Olivia Fernandes, 26, and her husband, Fabio, both fitness instructors in Miami, went from earning $77,000 a year to frantically trying to file for unemployment online.Many described a feeling of sudden economic helplessness that did not match how they saw themselves. In the space of two weeks, Olivia Fernandes, 26, and her husband, Fabio, both fitness instructors in Miami, went from earning $77,000 a year to frantically trying to file for unemployment online.
Now everything is on hold as the couple, who married three years ago, scramble to figure out their newly unemployed world — from next month’s student loan payment to the long-planned vacation to Belo Horizonte, Brazil, where Ms. Fernandes would have met her in-laws for the first time.Now everything is on hold as the couple, who married three years ago, scramble to figure out their newly unemployed world — from next month’s student loan payment to the long-planned vacation to Belo Horizonte, Brazil, where Ms. Fernandes would have met her in-laws for the first time.
“We watched it all collapse,” Ms. Fernandes said. “We looked at each other and said, ‘Oh my god, we have lost it all.’”“We watched it all collapse,” Ms. Fernandes said. “We looked at each other and said, ‘Oh my god, we have lost it all.’”
Before the outbreak, they had used much of their savings to chip away at student loans. Their health insurance coverage runs out at the end of March. Rent is due on April 1, and their landlord has made it clear that no extensions will be granted. By Ms. Fernandes’s calculations, they will have almost nothing left after April’s bills. Wearing gloves, they left their home to apply to Whole Foods and Target, but were then told to apply online.Before the outbreak, they had used much of their savings to chip away at student loans. Their health insurance coverage runs out at the end of March. Rent is due on April 1, and their landlord has made it clear that no extensions will be granted. By Ms. Fernandes’s calculations, they will have almost nothing left after April’s bills. Wearing gloves, they left their home to apply to Whole Foods and Target, but were then told to apply online.
Whether to opt for a high-risk job has turned into a common subject of conversation.Whether to opt for a high-risk job has turned into a common subject of conversation.
Scott Yates, 42, who was indefinitely furloughed from his job as a head bartender in one of the busiest and largest hotels in Charleston, W.Va., said he and his wife had decided not to, even though it seemed that Walmart, Sam’s Club and Kroger were “hiring left and right.”Scott Yates, 42, who was indefinitely furloughed from his job as a head bartender in one of the busiest and largest hotels in Charleston, W.Va., said he and his wife had decided not to, even though it seemed that Walmart, Sam’s Club and Kroger were “hiring left and right.”
“It’s not worth a $13-an-hour job coming home and infecting my family — and then who else does that spiderweb to?” said Mr. Yates, who has two teenagers, and on Friday got his last paycheck, which was about half of what he normally makes with tips.“It’s not worth a $13-an-hour job coming home and infecting my family — and then who else does that spiderweb to?” said Mr. Yates, who has two teenagers, and on Friday got his last paycheck, which was about half of what he normally makes with tips.
The last days of work came suddenly, and had a dreamlike quality. Spring Drake, 30, an events manager at a large hotel in Charlotte, N.C., said cancellations swept her department like a wave beginning around March 9 — first a large snack industry conference, then one by an aviation association. By week’s end, its book of business was almost entirely gone and employees were told they would be working only four days a week. On March 17, four out of five event managers were furloughed. One stayed on to handle the remaining cancellations.The last days of work came suddenly, and had a dreamlike quality. Spring Drake, 30, an events manager at a large hotel in Charlotte, N.C., said cancellations swept her department like a wave beginning around March 9 — first a large snack industry conference, then one by an aviation association. By week’s end, its book of business was almost entirely gone and employees were told they would be working only four days a week. On March 17, four out of five event managers were furloughed. One stayed on to handle the remaining cancellations.
The normally bustling hotel was unrecognizable. She said the lights had been turned off in the main banquet hall to conserve energy.The normally bustling hotel was unrecognizable. She said the lights had been turned off in the main banquet hall to conserve energy.
“It was eerie almost,” said Ms. Drake, who lives in Indian Trail, N.C. “It was real silent. It was nothing but the bones of the hotel.”“It was eerie almost,” said Ms. Drake, who lives in Indian Trail, N.C. “It was real silent. It was nothing but the bones of the hotel.”
Updated August 6, 2020 Updated August 12, 2020
When asked what she would compare it to, she could only think of a television show: “You ever seen ‘The Walking Dead’?”When asked what she would compare it to, she could only think of a television show: “You ever seen ‘The Walking Dead’?”
Sometimes there was sweet with the bitter. Maggie Johnston, a waitress, was nervous about losing her job at Joe’s Inn, a popular neighborhood restaurant in Richmond, Va. She had turned 60 a few days before, and did not have a lot saved. On the last night the restaurant was open to diners, a customer came up and slipped her a $20 bill with a note attached: “This is for when times get tough.”Sometimes there was sweet with the bitter. Maggie Johnston, a waitress, was nervous about losing her job at Joe’s Inn, a popular neighborhood restaurant in Richmond, Va. She had turned 60 a few days before, and did not have a lot saved. On the last night the restaurant was open to diners, a customer came up and slipped her a $20 bill with a note attached: “This is for when times get tough.”
Someone started a GoFundMe for the employees. On Friday it stood at $17,000. She has received several checks in the mail, including one from a name she did not recognize. Her landlord has agreed to let her pay just half her rent until she starts work again.Someone started a GoFundMe for the employees. On Friday it stood at $17,000. She has received several checks in the mail, including one from a name she did not recognize. Her landlord has agreed to let her pay just half her rent until she starts work again.
“I’m humbled,” she said on Thursday. “Even though I lost my job after 20 years, it could be so much worse.”“I’m humbled,” she said on Thursday. “Even though I lost my job after 20 years, it could be so much worse.”
Severe economic collapse, something like war, can bring changes so sudden that there is no time to adapt. Melissa Dellapasta, 45, was setting up a meal for executives of the Cleveland Indians on March 12 when everyone seemed to just get up and leave. An announcement had come: Baseball was postponed indefinitely. She has not worked since.Severe economic collapse, something like war, can bring changes so sudden that there is no time to adapt. Melissa Dellapasta, 45, was setting up a meal for executives of the Cleveland Indians on March 12 when everyone seemed to just get up and leave. An announcement had come: Baseball was postponed indefinitely. She has not worked since.
“Maybe they’ll open in April,” said Ms. Dellapasta on Thursday, what would have been opening day for Major League Baseball. Her employer runs the concessions and caters the meals at the ballpark where the Indians play. “Nobody has any idea. But I have no paycheck.”“Maybe they’ll open in April,” said Ms. Dellapasta on Thursday, what would have been opening day for Major League Baseball. Her employer runs the concessions and caters the meals at the ballpark where the Indians play. “Nobody has any idea. But I have no paycheck.”
For now, as far as rent and food, she is OK because her boyfriend is still working. He has a job at an Amazon warehouse. But they are nervous about his safety.For now, as far as rent and food, she is OK because her boyfriend is still working. He has a job at an Amazon warehouse. But they are nervous about his safety.
“There are all these new people who got hired when the restaurants shut down,” she said. “He can work overtime but he says he’s scared. He doesn’t want to be in the warehouse with all those people and get it and bring it home and give it to me. Yes, we could use the money but you can’t risk it.”“There are all these new people who got hired when the restaurants shut down,” she said. “He can work overtime but he says he’s scared. He doesn’t want to be in the warehouse with all those people and get it and bring it home and give it to me. Yes, we could use the money but you can’t risk it.”
Young parents said they now understood the extreme stress their parents experienced when they had been laid off, a mood they mistook as just another bout of grown-up grumpiness.Young parents said they now understood the extreme stress their parents experienced when they had been laid off, a mood they mistook as just another bout of grown-up grumpiness.
Nawaz Haraish, 26, said that when his mother lost her job in 2012 she was suddenly home all day and “super stressed” all the time.Nawaz Haraish, 26, said that when his mother lost her job in 2012 she was suddenly home all day and “super stressed” all the time.
He understands her now. Last week Mr. Haraish lost his job as a curbside assistance worker at Terminal 4 of John F. Kennedy Airport. He is deeply worried about providing for his daughters, ages 2 and 4, whom he called “my two sweethearts.” He said his first destination after leaving the airport the day he was let go was the store, to buy diapers and wipes.He understands her now. Last week Mr. Haraish lost his job as a curbside assistance worker at Terminal 4 of John F. Kennedy Airport. He is deeply worried about providing for his daughters, ages 2 and 4, whom he called “my two sweethearts.” He said his first destination after leaving the airport the day he was let go was the store, to buy diapers and wipes.
“I’m hoping the unemployment money will start coming in,” said Mr. Haraish, who lives in Richmond Hill, Queens. He said he sometimes watched YouTube videos as a distraction. One was about how to cope with anxiety. “Other than that I can’t tell you. I don’t really have a plan right now. I am super worried. But I’m trying not to let anxiety ruin me. I have my daughters. And they need a sane father.”“I’m hoping the unemployment money will start coming in,” said Mr. Haraish, who lives in Richmond Hill, Queens. He said he sometimes watched YouTube videos as a distraction. One was about how to cope with anxiety. “Other than that I can’t tell you. I don’t really have a plan right now. I am super worried. But I’m trying not to let anxiety ruin me. I have my daughters. And they need a sane father.”
His mother, he said, never quite recovered.His mother, he said, never quite recovered.
“You can see it in her face,” he said. “She has a stressed-looking face, like she’s been through a lot.”“You can see it in her face,” he said. “She has a stressed-looking face, like she’s been through a lot.”
Sabrina Tavernise reported from Washington; Audra D.S. Burch from Miami; Sarah Mervosh from Canton, Ohio; and Campbell Robertson from Pittsburgh.Sabrina Tavernise reported from Washington; Audra D.S. Burch from Miami; Sarah Mervosh from Canton, Ohio; and Campbell Robertson from Pittsburgh.