IRS Projects Millions of Jobs Will Vanish for Years

Mish

The IRS projects 37 Million Less W2 Filings in 2021.

IRS Publication 6961 projects huge reductions in W2 filings through 2027.  I picked that up from Bloomberg.

The IRS forecasts there will be about 229.4 million employee-classified jobs in 2021 -- about 37.2 million fewer than it had estimated last year, before the virus hit, according to updated data released Thursday. The statistics are an estimate how many of the W-2 tax forms that are used to track employee wages and withholding the agency will receive.

Lower rates of W-2 filings are seen persisting through at least 2027, with about 15.9 million fewer forms filed that year compared with prior estimates.

There’s one category that is expected to rise: The IRS sees about 1.6 million more tax forms for gig workers next year compared with pre-pandemic estimates.

That boost “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,” Mike Englund, the chief economist for Action Economics said.

Fewer W2s, Not Jobs

Those are fewer W2, not jobs. Some people work multiple jobs or switch jobs multiple times, but 37 million less W2 is surely many millions less jobs assuming the IRS projection is in the ballpark.

Mish

Comments (19)
No. 1-11
PecuniaNonOlet
PecuniaNonOlet

At least the IRS is thinking about 2021. No one else seems to think beyond the next few days.

numike
numike

its a hoax

Russell J
Russell J

When the gov/politicians and unions get out of the way Americans will get back to work and start new buss's and people will be able to get back to life, kids can go to school. But if the gov and unions don't, and soon, it might take until 2027, if ever, and that is a dark place I hope we don't go to.

gregggg
gregggg

Since there will be less income tax returns filed, does that mean the IRS will lay off some employees? Of course it doesn't work that way.

lol
lol

Chump and the Republicon party will vanish in 3 months,gone probably forever and a senile old grifter and the new Democratic Socialist will take there place and mark the end of what was once the greatest nation in history to now just bankrupt 3rd world banana republic where the 2 fastestgrowing industries continues to be govt and pot/ drug trafficking!

Six000mileyear
Six000mileyear

An estimated recovery in W2's by 2027 sounds like a DEPRESSION.

Rocky Raccoon
Rocky Raccoon

I don't suspect we are going to hear the Rush Limbaughs on AM conservative talk radio tell us at the current time how much the government has spent to save each job like they did the previous eight years.

The selective outrage of these critters is obvious.

Tony Bennett
Tony Bennett

"37 million less W2 is surely many millions less jobs assuming the IRS projection is in the ballpark"

...

That will HASTEN the demise of FICA trust funds.

The CBO will likely have an update in not too distant future.

davebarnes2
davebarnes2

"The IRS projects 37 Million Less W2 Filings in 2021."
Really?
FEWER, maybe, but, not less.

KidHorn
KidHorn

Many jobs will be gone for good. Sit down restaurants will die out and be replaced by carry out/delivery only. Far fewer waitresses. Maybe bars will do OK. Retail will die out except for grocery stores, home depot, Wal-mart. Stores that sell a lot of things needed immediately or difficult to ship. Car dealerships will survive. People need to test drive and get repairs. Malls are totally dead. People want to get in and out quickly.

amigator
amigator

Do we have any data on their previous forecasts? Are they any good a predicting future trends? Didn't even realize they were in this business.