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US Wind Power Sector Could Lose 35,000 Jobs, Despite Strong Q1

Source: American Wind Energy Association (AWEA)

The U.S. wind power industry reported strong Q1 results, although challenges for the industry lie ahead due to the coronavirus crisis. According to the American Wind Energy Association’s first quarter report, the industry installed more than 1,800 megawatts (MW) of new wind power capacity, while the volume of projects under construction set a new record, with 24,690 MW under construction across the country. 

The industry also experienced an advancement in turbine technology and offshore wind in Q1. Wind energy is now the largest provider of renewable energy in the U.S., supplying more than 7% of the nation’s electricity in 2019, enough to power 32 million homes.

However, much like the rest of the economy, the wind energy sector is experiencing significant challenges from the COVID-19 pandemic. An estimated 25 GW of planned wind projects are at risk, representing $35 billion in investment. The wind power industry represents more than 114,000 jobs in the U.S. economy and could lose more than 35,000 jobs as the economy retracts, the AWEA warns.

COVID-19 Threatens a Decade of Progress Against Poverty for Low-Income Countries

Source: International Monetary Fund

As the percentage of those living in poverty grows, household consumption declines, prompting concern over “the permanent loss of productive capacity,” in low-income developing countries (LIDC) says the IMF. Rising levels of poverty also threaten progress in health, education and gender equality, with implications for lifetime earnings and savings.

LIDCs experienced 5% growth just last year, and they even contributed a larger portion of COVID-19 financial support toward health compared to advanced or emerging economies. But they aren’t able to provide the same level of fiscal support as a public safety net or to stimulate economic activity.   

More vulnerable countries may look to their international community for support, for example, in the provision of health supplies, supply chain protection and financial assistance, including debt payment deferrals. The virus is only the first challenge to overcome, says the IMF, as “the COVID-19 pandemic will be defeated only when it and its socioeconomic consequences are overcome everywhere.” 

Northern Europe Maintains a Positive View of Its Economy, Even Amid the Pandemic

Source: Pew Research Center

Nearly 75% of those in Denmark believe their country’s economic situation is good — a surprising outlook considering the restrictions COVID-19 has placed on economic activity across the world. These views were reported between June and August, 2020, and collected in a survey from the Pew Research Center.

A similar percentage of respondents from Sweden and the Netherlands share positive views about their countries’ economies. But these northern European countries are outliers, as most adults surveyed across 14 countries report a negative economic situation in their country.

Denmark and Sweden — the two countries with the highest percentage of positive assessments of their respective economies — have had relatively low COVID-19 infection and death rates. They were also two of the first countries in Europe to lift lockdown restrictions. There is a correlation between how respondents perceive their country’s response to COVID-19 and how they view the economic status of their country, according to the research: “Those who view their country’s coronavirus response negatively are more likely to describe their country’s current economic situation as bad.” 

GDP Growth Depends on Far More Than Investment

Source: World Economic Outlook Database, IMF

Average gross domestic product (GDP) per capita in Latin America has not grown consistently since 1990. However, in the last 30 years, GDP in Asian countries has grown fourfold — in part due to investor activity, according to a paper from the International Monetary Fund. 

Over the past two decades, Latin America has received far less investment compared to Asian countries — but more than European countries, and Europe saw growth in GDP during the same period. Europe’s growth resulted from institutional reforms, meaning the relatively low GDP growth in Latin America is due to factors beyond investment.

The combination and quality of human capital, business climate and governance is what makes a difference: “In countries where property rights are not secure and governance is poor, firms will remain small and productivity low,” the paper notes. IMF analysis found that Latin American countries score low on both human capital and strong governance, making low investment in Latin America the result of low growth — not the cause. “Governments solely focused on boosting investment might want to look at the problem from a different perspective,” says the IMF.

50% of Jobs Lost in US Performing Arts Due to COVID-19

Source: Brookings Institution

The creative industry will lose an estimated 31% of jobs and 9% of its sales in the United States due to the impact from coronavirus. Fine and performing arts will see the heaviest loss at 1.4 million jobs and $42.5 billion in sales, according to estimates from the Brookings Institution, due to the pause in live performances.  

The southern region of the U.S. will suffer the most losses, followed by the western region, as creative industries in these areas are larger, with California, New York and Texas being most economically affected.

The creative industry is “one of the sectors most at risk from COVID-19,” says Brookings. The sector heavily supports other regional economies as well, and without the right financial support, “the damage will have reverberating effects” beyond the economy, on culture and quality of life.

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