When will Arizona re-open?

From the number of people infected by coronavirus to the amount of business adversely affected by the contagious pathogen, every day that passes brings new developments in how the nation is coping with COVID-19. For more than a month, companies of all sizes have had to cope with layoffs and furloughs to remain economically viable and competitive.

Health experts can't be certain when cases will notably diminish, and government officials are undecided on when to allow "non-essential" businesses to return to work. The same is true in Arizona, as Gov. Doug Ducey recently said the timeline for reopening the state will be guided by the facts on the ground.

Safety will be the determining factor
During a press briefing, Ducey said that while everyone is hoping to get things started as soon as possible, the return to normalcy will likely be gradual more than all at once.

"It's not like turning off the light switch and turning on the light switch," Ducey announced, as reported by The Associated Press. "It's about making the right decisions at the right time."

Prior to the outbreak, Arizona was one of several states in the midst of an economic boom, with unemployment at record lows and earnings showing signs of life. But the sudden shuttering of businesses has led to a surge in unemployment applications, with new claims topping 95,000 the first week of April, according to the AP. The average had been only 3,500.

The decision as to when stay-at-home advisories will sunset may influence employers' hiring and firing decisions moving forward. For now, the order remains in effect until April 30. After that point, Ducey said, he'll reevaluate.

"At the appropriate time, when it's safe, we will begin to re-energize our economy one step at a time," Ducey further stated.

250,000 unemployment claims since March 14
For many within the Grand Canyon State, the re-opening can't come soon enough. Since mid-March, the state has processed nearly 250,500 unemployment claims, AZFamily.com reported, based on Labor Department figures. The lion's share of that total occurred on April 4 at 132,189, up from 3,844 on March 21.

What's occurring in Arizona is a microcosm of what's happening nationwide. The unemployment rate jumped a full percentage point in April, from 3.4% to 4.4%. Economists believe the jobless rate may reach double-digits eventually, as unemployment is a lagging indicator. In a three week period, unemployment filings nationally neared 17 million – an unprecedented total in so short a period. 

Decisions by the government ultimately affect the decisions you make as a business. Hudspeth Law Firm can help you throughout this process so difficult choices can be made easier, whether they be related to account receivables, forbearance with creditors, succession planning, furloughs and more. Contact us today.

Categorised in: Business Law

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