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IRS predicts 37M fewer regular jobs than before pandemic

Aug. 20 — The Internal Revenue Service predicted Thursday the United States would have about 229 million employee-classified jobs in 2021 — 37 million fewer than it estimated before COVID-19 pandemic hit.

The new IRS estimate, which predicts the number of jobs that will require W-2 filings in 2021, compared with the 266 million jobs predicted before the pandemic.

It also predicted the lower estimates of jobs would continue through 2027, with about 16 million fewer W-2 forms filed that year than estimated before COVID-19 hit.

Meanwhile, the IRS estimated 1.6 million more gig jobs that require 1099-MISC tax forms in 2021 than it it did before the pandemic.

The gig work increase “likely reflects assumptions with the shift to ‘work from home,’ which may be gig workers, or may just be that businesses are more willing to outsource work — or have the status of their workers be independent contractors — now that they work from home,” Action Economics Chief Economist Mike Englund said.

The IRS job predictions for next year come amid new unemployment claims climbing to 1.1 million, an increase of 135,000 from the previous week, the Labor Department said in its weekly report Thursday.

The report listed the unemployment rate at 10.2%.

Source: UPI

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