unemployment Archives - Âé¶ą´«Ă˝Ół»­ /tag/unemployment/ Business is our Beat Thu, 16 Dec 2021 19:24:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 /wp-content/uploads/2019/01/cropped-Icon-Full-Color-Blue-BG@2x-32x32.png unemployment Archives - Âé¶ą´«Ă˝Ół»­ /tag/unemployment/ 32 32 Arizona experiences breakneck job growth, but inflation puts gains at risk /2021/12/16/arizona-experiences-breakneck-job-growth-but-inflation-puts-gains-at-risk/?utm_source=rss&utm_medium=rss&utm_campaign=arizona-experiences-breakneck-job-growth-but-inflation-puts-gains-at-risk /2021/12/16/arizona-experiences-breakneck-job-growth-but-inflation-puts-gains-at-risk/#respond Thu, 16 Dec 2021 19:18:44 +0000 /?p=16089 The Bureau of Labor Statistics released new unemployment data for Arizona, revealing the state’s unemployment rate has declined for the fourth month in a row. In October 2021 the rate fell to 5.2%, which was a full percentage point down from two months earlier. This rate is also about one-third of what the unemployment was […]

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The Bureau of Labor Statistics released new unemployment data for Arizona, revealing the state’s unemployment rate has declined for the fourth month in a row.

In October 2021 the , which was a full percentage point down from two months earlier. This rate is also about one-third of what the unemployment was at Arizona’s peak during the pandemic’s proliferation in 2020. 

The state’s rate, however, was still higher than the national average. The was at 4.6% for the month of October, down from COVID-19 spike in March 2020 which was at 5%.

“Last year, there were 21 million unemployment insurance claims before the Thanksgiving holiday. Today, there were 2.4 million,” said. “This is a historic jobs recovery: 5.6 million jobs created since I took office.”

Âé¶ą´«Ă˝Ół»­irrors this tremendous national trend in . The week before Thanksgiving 2020 there were 404,748 jobless claims in Arizona, and this week there were only 19,067. In October there were 3.65 million people in the Arizona job force, which was the most since 1976. 

The increase in jobs in Arizona was across nearly every category. The largest increase was in the leisure and hospitality industry, which took a beating due to pandemic-induced travel restrictions, lockdowns, and other public health measures enacted to slow COVID-19’s spread. The industry saw a in jobs since last year.

Looking to other sectors, there was a 6.4% increase in professional and business service jobs, a 5.5% increase in trade, transportation, and utility sector jobs, and a 1.3% increase in construction jobs. The number of government jobs remained approximately the same and information jobs declined by 0.9%. Despite these variations among sectors, the overall gains have been impressive.

According to the , improvements in the job market have helped drive increases in wages and disposable income. However, those gains have been tempered by a surge in inflation, and Arizona is no different. Prices for almost everything in the Phoenix metro area are, and it is experiencing higher inflation than the national average. The consumer price index rose 6.2% from October 2020 to October 2021 in Arizona, with energy costs on the rise at 23.3%, high food prices, and the price of gasoline up 46.8%.

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Arizona colleges join effort to help unemployed ratchet up skills /2020/08/25/arizona-colleges-join-effort-to-help-unemployed-ratchet-up-skills/?utm_source=rss&utm_medium=rss&utm_campaign=arizona-colleges-join-effort-to-help-unemployed-ratchet-up-skills /2020/08/25/arizona-colleges-join-effort-to-help-unemployed-ratchet-up-skills/#respond Tue, 25 Aug 2020 18:15:00 +0000 https://chamberbusnews.wpengine.com/?p=14047 Arizona community colleges, businesses and government agencies have joined a national movement to help those most affected by the massive job losses during the pandemic: low wage workers, women and people of color.  The effort, called the Reskilling and Recovery Network, is intended to not only to get people back to work but to train […]

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Arizona community colleges, businesses and government agencies have joined a national movement to help those most affected by the massive job losses during the pandemic: low wage workers, women and people of color. 

The effort, called the , is intended to not only to get people back to work but to train them for today’s modern jobs, particularly for technology positions like data and project management, cloud computing, cybersecurity, IT architecture, aviation technology, artificial intelligence and more.

“Many in our community are experiencing hardships because they’ve lost their job or a family member has lost theirs,” said Steven R. Gonzales, interim chancellor of the Maricopa Community College District (MCCD), the largest in the nation. “These families are undoubtedly uneasy about what tomorrow will bring. Our colleges understand that these concerns are very real, and are identifying every solution to ease the worry and set up our community to succeed.”

Steven R. Gonzales

All ten community college districts join to help economies recover

All 10 community college districts in Arizona have joined the national network, which is a 20-state collaboration to help Americans who have lost their jobs due to the pandemic and help local economies recover to their pre-COVID levels.

Widespread business closures due to the pandemic have led to massive job losses in Arizona and across the nation, particularly for those who work in service industries like restaurants, retail and hospitality. 

Hispanic women among those hardest hit in “shecession”

Hispanic women, immigrants, young adults and those with less education were hit hardest by COVID-19 job losses, according to the nonprofit, nonpartisan Center in Washington, D.C.  

According to the National Governors Association (NGA), businesses closed by the COVID-19 pandemic led to 14 million jobs lost in the U.S. According to the Federal Reserve, almost 40 percent of households making less than $40,000 a year lost their jobs in March.

And while a record number of jobs have been added back into the economy — 4.8 million in June and 1.8 million in July — many women are still being left behind because of jobs that cannot be done through telecommuting, according to the .ĚýĚýĚý

College leaders: Now is the time to act

College leaders said they have been putting new programs in place to reskill workers for the digital age. Now, is the time to be even more proactive. 

“We have to help people acquire new skills and get the training necessary to adapt to the rapidly changing nature of the workplace,” Pima Community College Chancellor Lee D. Lambert said. “This is also imperative to help us reach Arizona’s Achieve60AZ goal: that 60 percent of Arizona adults have a postsecondary degree or certificate by the year 2030. We only have 10 years, and for the sake of Arizona’s citizens and the future of our state, we need to reach that target.”

Lee D. Lambert

Community colleges expand technology offerings

Over the past several years, colleges across the state have been beefing up their  technology offerings to meet industry demand. Here is a small sampling:

Google IT Support Professional: In June, eight colleges began offering a Google IT Support Professional Support Professional certificate program including Maricopa Community College’s Maricopa Corporate College, Pima Community College and Arizona Western College. The nationally accredited program is for beginners to introduce learners to troubleshooting, customer service, networking, operating systems, system administration and security.Ěý

Artificial Intelligence certificate and degree: In the first collaboration of its kind, Intel is teaming up with the MCCD to launch the nation’s first Intel-designed AI certificate and associate degree program.Ěý

Aviation Technology Program: Pima Community College is undergoing the expansion of its nationally recognized Aviation Technology Program that teaches maintenance and repair training for large transport commercial aircraft. A modernization and expansion of the facility that is adjacent to Tucsonadjacent Tucson International Airport is expected to be completed in 2021 or early 2022.

3D Construction Program: Yavapai College announced this year it is launching what is believed to be the nation’s first 3D Construction Program to add to its current construction programs. Students can learn the emerging new technology of 3D printing to construct houses.

Arizona organizations join the reskilling effortĚý

In Arizona, those joining with the college districts in the effort are the Governor’s Office, Achieve60AZ, Arizona Commerce Authority, Arizona Community College Coordinating Council, Greater Yuma Economic Development Corp., Pinal County Economic and Workforce Development Department, and The Boeing Company.

About the Reskilling and Recovery NetworkĚý

The network is a partnership between the NGA’s Center for Best Practices and the American Association of Community Colleges (AACC) with support from the Lumina and Siemens foundation. 

Through the network, Arizona and other states will:

  • Engage employers in partnering with community colleges to train and hire new employees, prioritizing jobs that pay a living wage or more.
  • Engage with a collaborative network of like-minded state leaders  to strategize economic and workforce recovery on a regular basis.
  • Receive access to tools designed by peers in the field and be paired with experts engaged by the NGA Center and AACC.
  • Have access to technical assistance including webinars, facilitated peer-to-peer learning, virtual state site visits and more.

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Forecast for Arizona’s Economic Recovery from COVID-19 /2020/08/19/forecast-for-arizonas-economic-recovery-from-covid-19/?utm_source=rss&utm_medium=rss&utm_campaign=forecast-for-arizonas-economic-recovery-from-covid-19 /2020/08/19/forecast-for-arizonas-economic-recovery-from-covid-19/#respond Wed, 19 Aug 2020 18:30:00 +0000 https://chamberbusnews.wpengine.com/?p=14024 While sectors of Arizona’s economy have suffered financial losses during the pandemic, the state is faring better than much of the nation, according to a leading economist.  If Arizonans can stay masked, socially distanced and sanitized, it has a good chance for full recovery as soon as mid 2021, said the state’s heavyweight economic forecaster, […]

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While sectors of Arizona’s economy have suffered financial losses during the pandemic, the state is faring better than much of the nation, according to a leading economist. 

If Arizonans can stay masked, socially distanced and sanitized, it has a good chance for full recovery as soon as mid 2021, said the state’s heavyweight economic forecaster, George Hammond, a research professor and the director of the Economic and Business Research Center at the Eller College of Management at the University of Arizona.

George Hammond

“There’s a huge amount of uncertainty about how this is going to all play out and it’s connected to the outbreak and how the virus itself works,” said Hammond, who has been local and state economies for more than two decades from his university office in Tucson.Ěý

Hammond issued his latest projections and talked about how the state has managed to weather the pandemic at a recent , entitled Economic Forecast: Covid 19 Impacts on Arizona’s economy, hosted by the Arizona Âé¶ą´«Ă˝Ół»­ of Commerce and Industry.ĚýĚý

Arizona jobs’ picture better than nation

Among the reasons Arizona is hanging on are jobs and unemployment reports. 

In the early months of the pandemic, the nation saw 14.5 percent of jobs lost and has since recovered to 10 percent. Arizona’s is only 5 percent lower than where it was before the pandemic.

Arizona also has a slightly lower unemployment rate. In June, the rate was 10 percent compared with the nation’s 11.1 percent.

Arizona’s healthier data is due in part to being one of the fastest growing in the country pre pandemic, and industries like construction and remote retail remain strong. Governor Doug Ducey’s early and gradual reopening of the economy also contributed to jobs and economic growth. 

Personal income bolstered by federal lifelines 

Personal income also got a boost from the bipartisan passed by the U.S. Congress in late March to help keep Americans and businesses afloat during the coronavirus shutdowns.Ěý

These lifeline programs have helped families pay their bills and put food on the table, Hammond said. 

In the first few months of the pandemic, CARE Act programs pumped more than $17 billion into the state’s economy including:

  • Increased unemployment benefits: Unemployment compensation recipients in Arizona received an extra $600 tacked on to their weekly benefit of $240 for up to two months. That injected about $8.2 billion into the state, amounting to about 2.4 percent of the state’s total personal income last year.ĚýĚý
  • The federal Paycheck Protection Program: The program, which provides grants to small businesses to keep employees on the payroll and pay company operating expenses, injected $7 billion into the economy early in the pandemic, representing about 2.1 percent of personal income in 2019.Ěý
  • Recovery rebates:Ěý Rebates provided another $2 billion to citizens in the state.

“So somewhere north of 5 percent of Arizona’s personal income last year was injected intoĚýArizona’s personal income in just a couple of months,” Hammond said. “I think that’s had a significant impact in our ability to deal with the pandemic so far.”

Economic forecast for coming monthsĚý

Hammond also laid out projections for an “alphabet soup” of pandemic recovery scenarios including:

  • A 20 percent chance the state will see a rapid V-shaped recovery, where the economy will quickly bounce back from the downturn, then return to pre pandemic levels by early 2021.  
  • A 30 percent chance for a W-shaped recovery — the worst case scenario — that would occur if there is a surge of the coronavirus combined with a virulent flu season, forcing the state back into a shutdown and economic distress. 
  • A 50 percent likelihood for a “Nike Swoosh-shaped,” or baseline, recovery where a bottoming out is followed by a steady and gradual rebound.

“If we can avoid a significant surge in the outbreak as we go through the fall and winter months, I think we’ll continue on a gradual recovery trajectory like a Nike Swoosh type recovery, getting us back to where we were before the pandemic by mid 2021 or in the second half,” Hammond said.

That will depend, of course, on the state’s ability to keep the virus in check.

“We are learning where the big risks are and what we can do to reduce those risks and what we can do ourselves to get control of the outbreak. The sooner we have control of the outbreak, the faster things will go back to normal.”

To watch the webinar in its entirety, go to: Economic Forecast:

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What’s in the next pandemic relief bill? /2020/07/20/whats-in-the-next-pandemic-relief-bill/?utm_source=rss&utm_medium=rss&utm_campaign=whats-in-the-next-pandemic-relief-bill /2020/07/20/whats-in-the-next-pandemic-relief-bill/#respond Mon, 20 Jul 2020 19:44:35 +0000 https://chamberbusnews.wpengine.com/?p=13849 As Congress this week returns to Capitol Hill to consider its fourth major pandemic relief and response bill (a fifth bill updated elements contained in a previous bill), I anticipate that there are seven major elements that will be included in some form or fashion. The Wall Street Journal had an excellent Q&A feature over […]

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As Congress this week returns to Capitol Hill to consider its fourth major pandemic relief and response bill (a fifth bill updated elements contained in a previous bill), I anticipate that there are seven major elements that will be included in some form or fashion.

The Wall Street Journal had an excellent over the weekend that laid out the various issues that the next bill might address. Here’s my take on the items identified in the story:

Unemployment benefits.

The first aid package contained a massive expansion of unemployment benefits at $600 above a state’s existing unemployment insurance payment. Lawmakers approved the enhanced benefit knowing that, for many workers, the additional dollars would deliver a temporary income higher than what they were previously earning at their job. It’s unlikely a similarly generous payout will be repeated.

Still, given that unemployment levels remain high, supplementing regular state unemployment insurance is justified, but it should be at a level that does not exceed a worker’s pay before a furlough or a layoff. There are some creative bipartisan proposals that deserve consideration to encourage a return to work without pulling the rug out from under struggling households.

Additional stimulus pay.

The original CARES Act provided up to $1,200 per adult and $500 per child in direct cash assistance. Again, given the current high unemployment levels, additional relief makes sense. How much, exactly, and how it is targeted still needs to be settled. Ěý

This moment also offers policymakers the chance to consider ways to improve the Earned Income Tax Credit, a refundable tax credit aimed at low- and moderate-income working families. One reform could include automatically issuing the credit to qualifying households without requiring the filing of a tax return. 

Schools reopening.

I strongly disagree with those who believe that schools should be penalized if they’re not open during a pandemic for legitimate safety reasons. We cannot and should not force teachers, support personnel, or students into a classroom or school environment where they don’t feel safe.

A carrot approach would be better, delivering funds attached to each student who is attending an in-person educational setting to reflect the increased costs. Funding must be available for face masks, cleaning products, PPE, and the implementation of any other healthcare protocols necessary to improve school safety and hygiene.

Funds should also be available for distance learning, which will be necessary to provide resiliency if schools must close or for students who have underlying health conditions and for whom a return to in-person learning might be delayed.

There should also be funds allocated for all parents and guardians, perhaps subject to income limitations, for expenses related to transportation and connectivity like WiFi or laptops.

In Arizona, it’s estimated that the cost to provide for a safer in-person learning experience is $485 per child. 

Liability reform.

Liability reform is essential not just for regular businesses attempting to reopen safely and responsibly, but for schools, cities and towns, non-profits as well as healthcare providers. We don’t want concerns over dubious lawsuits to delay our recovery.

This protection should provide certainty for those acting in good faith to follow applicable state and CDC health guidelines. Ideally, there would be safe harbors in any protection.

Bad actors who are grossly negligent or who engage in willful misconduct should not be protected, and the relief should be temporary and targeted to Covid-19.

State and local aid.

Any additional aid to states and cities should provide maximum flexibility to these jurisdictions as long as funds are used to respond to the economic fallout from Covid-19. In other words, federal tax dollars should not be used for things like pension bailouts or other problems that existed long before the pandemic.

It’s important to point out that Congress did appropriate $150 billion in March for state and local governments. It would be useful to have a report on how those dollars were spent and any lessons learned that could be applicable to additional aid. It is worth considering additional aid for U.S. border communities whose finances have been devastated by the prolonged closure to most cross-border travel.

Additional business aid.

The Paycheck Protection Program is arguably the most successful business assistance program in the history of the world. Thus far, this small business rescue effort has provided about 5 million forgivable loans representing more than $515 billion.

In Arizona, the numbers are staggering. More than 81,000 small businesses have received these loans worth more than $8.5 billion.

There’s still about $130 billion left in the program, which after extensions is now set to expire August 8. Congress should extend the program again and more dollars should be added, and all loans already distributed should be completely forgiven if they’re under $150,000.

For smaller businesses, say those with 100 or fewer employees, or businesses in hard hit sectors like hospitality, a second round of lending should be allowed.

Congress should also expand the Employee Retention Tax Credit, which has bipartisan support. The credit helps employers keep their workers on the payroll while relieving a percentage of employment taxes. The president’s payroll tax holiday is truly stimulative and, along with the administration’s deregulatory efforts, could provide the building blocks for a structurally sound recovery. 

With the continued tensions between the U.S. and China and the USMCA now in effect, incentives for vital supply chains for things like medical supplies and semiconductors to return to or expand in the U.S. deserve support.

Dealing with the virus.

Additional aid should be directed to testing and contact tracing, as well as building a robust public health infrastructure. It also makes sense to direct money at boosting the number of Americans who get the flu vaccine this year. A raging influenza season on top of Covid-19 could be devastating.

Dollars should be allocated for small- and medium-sized businesses for costs related to PPE and other protocols to make the workplace safer. Arizona Rep. David Schweikert has a good idea to help businesses offset the costs of providing tests for workers.

A massive PR campaign on wearing masks—the closest we have to a silver bullet when people are in public—is needed.

It’s easy to be a critic, but thus far Congress and the administration have risen to the occasion in supplying aid and direction in previous Covid-19 relief bills. I want to particularly thank our U.S. senators, Kyrsten Sinema and Martha McSally, for working tirelessly and turning their offices into virtual MASH units in assisting their constituents in dealing with this crisis.

Glenn Hamer is president and CEO of the Arizona Âé¶ą´«Ă˝Ół»­ of Commerce and Industry.Ěý

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Lifesaving resources for Arizona businesses during pandemic /2020/04/28/lifesaving-resources-for-arizona-businesses-during-pandemic/?utm_source=rss&utm_medium=rss&utm_campaign=lifesaving-resources-for-arizona-businesses-during-pandemic /2020/04/28/lifesaving-resources-for-arizona-businesses-during-pandemic/#respond Tue, 28 Apr 2020 17:00:00 +0000 https://chamberbusnews.wpengine.com/?p=13380 Arizona businesses that are losing revenue due to the coronavirus can tap into a wealth of resources to help them stay afloat during the pandemic.  From grants, to no-interest loans, to technical assistance, there are many avenues for relief. One of the largest is the federal Paycheck Protection Program that opened its second round of […]

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Arizona businesses that are losing revenue due to the coronavirus can tap into a wealth of resources to help them stay afloat during the pandemic. 

From grants, to no-interest loans, to technical assistance, there are many avenues for relief. One of the largest is the federal Paycheck Protection Program that opened its second round of funding for small businesses last week. It provides $310 billion for companies including those who lost out during the first round when the funding ran out in the first two weeks. 

Glenn Hamer, president and CEO of the Arizona Âé¶ą´«Ă˝Ół»­ of Commerce & Industry, is hoping the process will be easier and more accessible this time. 

“More than one million jobs in Arizona are connected to small businesses and more than 350,000 Arizonans have filed unemployment claims in the past month,” Hamer said. “The administration of these federal programs must be simple for small business owners to navigate. If there isn’t radical improvement, then it could be too late for them.”

The Arizona Âé¶ą´«Ă˝Ół»­ and chambers statewide have as their top priority the survival of small businesses. Most chambers have links to resources, tips and “cheat sheets” in both English and Spanish on their websites to assist businesses. 

Dozens of programs for small and mid-size companies 

There is a wealth of resources designed to help businesses and employees survive financially during the pandemic including: 

FEDERAL FORGIVABLE LOANS 

Paycheck Protection Program (PPP)

Companies with 500 or fewer employees,Ěý including independent sole operators, may apply for the U.S. Small Business Administration (SBA) . Companies can receive up to two months of operating costs including payroll, rent and utilities. The majority of the funding is forgivable, acting more like a grant than a loan. Those applying should go through their regular bank or find a qualified lender on the Arizona Banking Association website at: SBA .Ěý

Free training to navigate PPP application process

The Arizona Âé¶ą´«Ă˝Ół»­ of Commerce and the Arizona Small Business Association launched the CARES Act Readiness Program for Small Businesses, a free training program that helps both novice and experienced borrowers navigate the federal assistance program. The programs are in English at: or Spanish at .Ěý

FEDERAL LENDING FOR SMALL, MID SIZE COMPANIES 

The Federal Reserve announced that it is establishing a Main Street Lending Program to support lending to small and medium-sized businesses that were in good financial standing before the onset of the COVID-19 pandemic. For more information go to: . 

TAX CREDIT EXEMPTION FOR EMPLOYERS

The federal Employee Retention Tax Credit is a new tax credit program designed to help companies and nonprofits retain their employees during the coronavirus outbreak. Employers whose business operations are suspended, partially suspended or are experiencing significant revenue losses because of the virus outbreak are eligible for the tax credit exemption. To learn more, go to:

The U.S. The Âé¶ą´«Ă˝Ół»­ of Commerce also has issued a guide to assist employers at: . 

INDEPENDENT CONTRACTORS, FREELANCERS  

Unemployment benefits for independent contractors

Due to COVID-19, independent contractors can qualify for unemployment payments in Arizona. In the past, this service was not available to freelancers and 1099 contractors. Applicants may receive up to $600 weekly during the pandemic. Expect a wait time as the Arizona Department of Economic Security is dealing with a record number of claims. For more information, go to:

NO INTEREST, LOW INTEREST LOANS 

Kiva Tucson

Kiva Tucson, Growth Partners Arizona and Community Investment Corporation have partnered to provide no-interest, no-fee, community-backed business loans from $1,000 to $15,000 that are crowdfunded on Kiva’s world-wide online platform. Learn more at::Ěý

Small Business Success Loan

Growth Partners Arizona, in collaboration with the Business Development Finance Corporation, are offering loans of $10,000-$75,000 to qualified small businesses for equipment, long-term working capital, tenant improvements, consolidation of more expensive debt, and more. For more information, go to: .Ěý

HOTLINE HELP FOR PHOENIX BUSINESSES 

City of Phoenix Hotline

Phoenix businesses hurt by the pandemic can call the hotline at (602) 262-5040 to be connected to resources, financial assistance, and more. The city does not have a call center so the hotline is the main phone number for Community and Economic Development. If possible, all calls are answered or returned within one business day.Ěý

The department also has a list of many resources available for city businesses at:

RESTAURANT WORKERS  

The restaurant industry has been among the hardest hit in the pandemic. To help employees, a number of groups are offering grants and accepting donations to help including:

Arizona Restaurant Association Relief Fund provides immediate funding for restaurant workers impacted by the pandemic. Individual grants of $500 are being given to restaurant industry staff who have suddenly found themselves without a paycheck. Donations also are being accepted to help these employees. Go to:

Another Round Another Rally is providing $500 relief grants in emergency assistance for employees in hospitality. Chefs, servers, bartenders, dishwashers, sommeliers, managers and others in hospitality roles who have lost jobs or had hours slashed. The group has been flooded with requests so donations are welcome. More information is available at: 

Âé¶ą´«Ă˝Ół»­ road maps and “cheat sheets”

Âé¶ą´«Ă˝Ół»­s of commerce statewide also have lists of local, state and federal resources to help businesses on their websites. 

The Arizona Âé¶ą´«Ă˝Ół»­ of Commerce and Industry offers a comprehensive resource guide at: . The U.S. Âé¶ą´«Ă˝Ół»­ of Commerce also has a host of links to resources and tips for small businesses and sole-operator companies at: .

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Can rural Arizona stave off coronavirus, save local economies? /2020/04/27/can-rural-arizona-stave-off-coronavirus-save-local-economies/?utm_source=rss&utm_medium=rss&utm_campaign=can-rural-arizona-stave-off-coronavirus-save-local-economies /2020/04/27/can-rural-arizona-stave-off-coronavirus-save-local-economies/#respond Mon, 27 Apr 2020 17:00:00 +0000 https://chamberbusnews.wpengine.com/?p=13370 As the coronavirus spreads outward from Arizona’s urban centers, rural towns and cities have been practicing social distancing for weeks as a preemptive strike.   The stakes are high. Arizona’s rural areas tend to have more low income and elderly residents. Rural hospitals and health care facilities, many struggling financially, may not be equipped to handle […]

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As the coronavirus spreads outward from Arizona’s urban centers, rural towns and cities have been practicing social distancing for weeks as a preemptive strike.  

The stakes are high. Arizona’s rural areas tend to have more low income and elderly residents. Rural hospitals and health care facilities, many struggling financially, may not be equipped to handle a serious outbreak.

Businesses statewide are dramatically curtailing operations. Municipal coffers are squeezed. Community leaders also are feeling pressure on all sides as they plot when they can safely reopen their economies and save most of their businesses. 

For now, many mayors and tribal leaders are saying it’s still too soon. But opening commerce back up could start in the next few weeks. 

As the virus starts to flatten out, recovery will be gradual. 

Last week, Gov. Doug Ducey took the first step, announcing that hospitals and health care facilities can start performing elective surgeries if they meet certain “preparedness” criteria. This would allow patients in need of surgery to get treatment they need. It would provide much-needed revenue for all health care providers that were ordered to increase bed capacity and preparedness for a potential serious outbreak.  

Under the new order, hospitals, dental offices and other health facilities can resume conducting elective surgeries May 1 if they can show they have implemented measures designed to keep health workers and patients safe. 

A balance between saving lives and saving livelihoods

As the stay-at-home order stays in effect, mayors in rural counties like Doug Nicholls of Yuma and Arturo Garino of Nogales are publically calling on citizens and businesses to continue taking precautions.   

Nicholls is urging citizens and businesses to “double down” on social distancing.    

“We need to focus on that as a community to get our businesses open because we haven’t

peaked yet,” said Nicholls at a meeting to discuss economic recovery with public and private officials recently. 

Mayor Garino is taking to the airwaves in English and Spanish to ask the community to follow Gov. Ducey’s order to, “Stay home. Stay healthy. Stay connected.”

Garino is public messaging to remind citizens to wash their hands, not touch their faces when they go out, and other precautions. 

“If you do go to the store, please go by yourself. Don’t take the whole family with you,” Garino says on a video posted on the city’s website. “We have to look at our surroundings and be connected to what’s happening around us.”

Tensions high 

No one wants a repeat of the lifesaving battle taking place on the Navajo reservation where COVID-19 made a deadly entrance last month, spreading quickly where people were believed to be exposed at a church event. 

As of Saturday, the nation, which spans multiple counties in Arizona, New Mexico and Utah, had confirmed 1,540 cases. Fifty-eight people have died.  

So far, most rural counties and tribal nations have seen few deaths. 

In countries like Gila, Graham, Greenlee and La Paz, there are less than a handful of confirmed COVID-19 cases. But their economies are straining under stay-at-home orders. 

In the Lake Havasu area that relies on tourism, Lake Havasu Area Âé¶ą´«Ă˝Ół»­ of Commerce President Lisa Krueger stated that the order could be devastating for Havasu’s service industry.

“Every business is at risk,” Krueger told Havasu News after two cases were confirmed in Mohave County last month, resulting in social distancing across Mohave County. “This has never happened in Havasu before, and we don’t know how this will affect us in the long term.”

Tensions have been high. In Lake Havasu City — and towns and cities everywhere — police continue to respond to calls that some public places are not abiding by the order. Duel petition drives to keep nearby Lake Havasu open or closed have circulated, dividing the community. 

For now, the lake remains open under the jurisdiction of eight local, state, tribal and federal agencies. Even so, tourism and camping numbers are far below average. Events are being canceled.

Lake Havasu’s new casino, resort reopening canceled 

Last week, Chemehuevi Tribal Chairman Charles Wood that the tribe is delaying a planned reopening in early May of its new Havasu Landing Resort and Casino on the lake. 

Chairman Wood said he wanted to avoid any “lingering possibility of a second outbreak of the virus.”

The tribe’s action to abide by the shelter order may have saved lives, he said.

“It is imperative that we wait and flatten the curve as much as possible so we do not reopen only to have to close once again,” Wood said. “We cannot predict when sanctions will be lifted, so let’s all do the best we can. We want to emerge in a safe and sustainable way.”

Second Paycheck Protection Program may ease anxiety 

Some of the anxiety being felt among small businesses across the state could ease some with the announcement that the federal Paycheck Protection Program ) has reopened for a second round to help businesses hurt by the pandemic. Businesses can apply for forgivable loans to pay for up to two months of operating costs like payroll, rent and utilities. 

Many small businesses felt shut out of the first round that quickly ran out of money, said John Courtis, executive director of the Yuma County Âé¶ą´«Ă˝Ół»­ of Commerce.

“The frustration is mounting from Main Street Yuma that many businesses got shut out of the first round of the PPP, and many of them have not received their stimulus check,” Courtis said.  “Many that I have talked to are losing confidence in the system and feel it is rigged against them. We are doing our level best to communicate a calm future.”

Courtis said it has been heartbreaking to see how many small businesses have been hurt, particularly in border towns like San Luis where the border’s port of entry has cut back hours because of the coronavirus. 

Several San Luis businesses made the decision to close for good, he said. 

A member survey completed Thursday indicates that 5 percent of businesses will not be able to reopen after the stay-at-home order is lifted, he said. Nearly 80 percent said with the proper safety protocols in place, they would be ready to open May 1.

Rural chambers rush to aid broken businesses   

Âé¶ą´«Ă˝Ół»­s of commerce have been rushing in to help their members, connecting them to loan programs, grants, financial assistance and other . They are helping connect them with loan institutions, and hosting virtual meetings and trainings with members. 

“Everyone is working overtime to keep this liquidity moving and to make sure businesses will be here in the long run,” said Julie Pastrick, president and CEO of the Greater Flagstaff Âé¶ą´«Ă˝Ół»­ of Commerce.   

The chamber has opened two web portals to help local businesses understand all the government assistance and other programs available. It also has joined forces with the Arizona Small Business Association, Arizona Commerce Authority and Arizona Âé¶ą´«Ă˝Ół»­ of Commerce and Industry to provide a that gives novice and experienced businesses support in getting approved for the second round of PPP funding. 

Pastrick said the impact in Flagstaff has been tough as retail, restaurants and hotels face closure and major attractions shut down. 

The Arizona Snowbowl in Flagstaff, which generates $50 million into the local economy each year, was closed at the peak time for the season, April 1. Ninety minutes north of the city, Grand Canyon National Park closed April 1. Normally, the park welcomes 6.3 million visitors that spend $947 million in nearby communities. 

A look at communities across the state reveals that every situation is different:

Mining towns could be impacted 

Across the state, large industries are also being affected. For example, the largest employer in Greenlee County, Freeport-McMoran, the owner of the Morenci Mine, is reducing its operating expenses worldwide due to the pandemic. 

According to a news issued Friday, Freeport states that revised operating plans for 2020 will result in a $2.2 billion reduction in estimated operating costs, capital expenditures and exploration and administrative costs. Layoffs and furloughs are expected.

Border communities lose revenues as cross traffic restricted   

Border communities like San Luis and Nogales are suffering from lost revenues as businesses close during the pandemic. Border crossing hours have been reduced and traffic restricted to slow the spread of the virus. 

A flare up of COVID-19 in San Luis Rio Colorado, Sonora, Mexico, which borders San Luis, is stoking fears. 

Yuma-area border mayors and elected officials are speaking virtually with federal agencies seeking support including testing that can be made available at the border for those traveling into the U.S. 

Meanwhile, the shutdown of small businesses and restricted borders are draining the economies. 

City collections are dropping, Nogales Mayor Garino said. When the sheltering order came, Nogales businesses were still recovering from the border restrictions placed during the migrant humanitarian crisis during the past year.

The Nogales-Santa Cruz County is taking various approaches to help businesses revisit their business plan by creating various strategic plans that can help sustain business in the upcoming months, chamber officials said Friday. 

Summer fun put on hold, second home owners asked to stock up 

Other smaller towns that rely on tourism like Payson are slashing their budgets as revenues from tourists and visitors are being lost.  

Many outdoor areas have been shut down. Some are advising visitors to delay plans and second home owners to stock up on supplies before leaving home. 

On April 18, the Pinetop-Lakeside Âé¶ą´«Ă˝Ół»­ of issued a letter to visitors and second home owners to stock up before they come for an extended stay due to limited supplies at grocery stores and limited services at restaurants. 

The chamber also is encouraging potential visitors to wait until “this crisis has subsided.”

“This virus has spread very quickly and until Arizona is successful in controlling the spread, we ask you to do the right thing and delay your visit until it is safe to come. We will be waiting to welcome you with open arms at that time.”

While every city and town is feeling the impact, local officials report many industries and jobs remain intact. 

Yuma agricultural finished the season with sigh of relief 

In Yuma, the agriculture sector supplies almost all of North America’s green leafy vegetables in winter months. As the stay-at-home order went into effect, Yuma farmers were finishing their last harvest of the season. Economic harm from the virus has been minimal. Strenuous measures to protect laborers are in place, Mayor Nicholls said.  

“We see that workers and business leaders in these industries are rising to meet unprecedented challenges by maintaining high food safety standards and protocols,” the mayor said.

City leaders’ bigger concern is for restaurants, bars, gyms, and retail that have been impacted by closures. 

Nicholls is hosting virtual Zoom meetings to talk with local Yuma business owners to gather feedback on what they believe needs to be included in the governor’s plan to re-energize the economy. 

“There is no one-size-fits all approach, and it is key for me to listen to different business impacts and viewpoints so we work unitedly on the next steps,” said Mayor Nicholls. “From the meetings with business owners in Yuma, I gathered valuable input to give to Governor Ducey, as he requested, and will continue to host these meetings in our community. We look forward to energizing the economy, and to support our local business efforts to keep their employees and customers’ wellbeing a mainstay.” 

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