How Many Businesses Have Closed Due to Covid-19?
Published: January 15, 2022
The pandemic has affected the world in ways that were previously unimaginable. Businesses have closed down, unable to withstand the costs of the crippling economic crisis brought on by COVID-19 and the many social restrictions meant to protect us.
But, just how many businesses have suffered at the hand of the virus?
Keep scrolling to find out!
How Many Businesses Have Closed due to Covid-19?
(Source: The Wall Street Journal)
With wave after wave and lockdown after lockdown, it’s not surprising that small businesses have suffered the most. In fact, as of April 2021, studies suggest that around 200,000 US establishments have had to permanently close their doors because of the pandemic.
Other Stats about Business Closures
Knowing that so many companies went out of business shows us just how much of an impact the pandemic has had on everyone’s life. Keep reading to learn more about the devastating ramifications of COVID-19 and the mandated restrictions that came with it.
Around 1% of small businesses permanently closed a location in November.
Recent data suggests that the most significant number of smaller firms closed in January of this year (1.5%). Additionally, just slightly less than one percent of businesses went through a temporary shutdown in order to try to stay afloat.
22% of small businesses permanently closed their doors in February of 2021.
According to a Facebook and the Small Business Roundtable report, this 22% indicates a 14% increase from October 2020.
Furthermore, 27% of small and medium-sized businesses had to reduce their workforce, with 48% of these companies having to lay off at least half their employees.
The accommodations and food service industries were some of the worst affected.
This is especially true for the smaller firms in this sector. These establishments took a hard hit because they were directly and immediately affected by the mandated restrictions and social distancing rules put in place to battle the spread of the virus.
4.4 million US establishments cut back on personnel.
According to a US Bureau of Labor Statistics survey, this figure shows that 52% of business establishments told their employees to stop working for some time during the pandemic (with or without pay).
The global e-commerce business is booming.
E-commerce statistics show that the pandemic wasn’t all bad! In fact, global e-commerce earnings reached $26.7 trillion this year. So, although many companies went out of business, others are thriving due to the COVID restrictions.
All in all, the virus has affected our lives in one way or another. We’ve had to learn to stay home and distance ourselves from family and friends.
As hard as that may have been, the situation has been even more challenging for people who lost their jobs or businesses. Hopefully, the pandemic will end soon, and all of the former business owners and unemployed workers can get back on their feet.