The U.S. economy is expected to take a hit from the collapse of the energy sector and the collapse in commodity prices, and as a result, a lot of people are going to need to take the time to find new jobs.
That’s according to the chief economist at the U.K.-based Institute for Fiscal Studies, John Bauld.
“The outlook for the U-turn in economic activity is not looking good,” Bauld said in a blog post Wednesday.
“This is a very fragile economy and the outlook is not good.”
The report notes that the economy will likely be “shifted” from a “growth-driven” model of output growth to one of “uncertainty,” with the outlook for that growth shifting between “uncapable” and “uncapped.”
“This is going to have an impact on construction work and employment in the construction sector,” Boulding said.
“There’s an increasing likelihood that construction work will be shifted from a growth-driven model of activity to one where there is uncertainty about whether growth will continue, which will reduce the amount of new construction that can be built,” he added.
“Construction jobs are going from growth-based growth to uncertainty, and uncertainty about what will happen to the economy and what the government’s response is going in terms of how much tax revenue will be needed to pay for the necessary public services to sustain that growth,” he continued.
The institute also noted that construction activity is likely to fall, with the number of construction jobs dropping by 1.6 million jobs in 2019.
The U-Turn in U.N. Development Activities Report (UNDP) released Wednesday, which forecasts the economic impacts of the U.-turn on the global economy, also found that the number and rate of job losses will increase by 8 million jobs by 2020.
According to Bauld, while the economy is still “not a recession-proof zone,” it’s “not as bad as some have been making it out to be.”
“The economic downturn is coming.
It’s not a crisis.
It will be a slow-motion collapse,” he said.