As the world’s economy is suffering from COVID-19 widespread, Many countries worldwide are on the extreme edge of recession. World leaders, economists, analysts, researchers all are under pressure to stop their economy from going in a recession or depression zone. The recession phase will be challenging for the country’s economy to tackle. Recession will come along with many unwanted disturbances like the high unemployment rate, low GDP rate, etc. and will increase market volatility. They are mulling everything about the current situation and future demands of citizens and businesses.
On Thursday, Governor Gavin Newsom has announced a significant relief for small businesses asking for not paying sales tax for the next year. Earlier, Gov passed an order extending due dates for sales tax. However, as the situation is getting worsens day by day. So, to give significant relief to small businesses, Gov announced relief from sales tax for one-year and ten-million-dollar rescues to those businesses which will keep paying to their employees.
The unemployment rate is increasing so rapidly in the united states. People have to wait for hours online in the queue to register themselves for unemployment benefits. Small businesses in California gives employment to almost 45-50% to the private sector employees.
In the last three weeks, from California, almost 1.9 million people have registered themselves for unemployment benefits. All these steps are suggested to reduce the unemployment rate in California.