The Kids Are Not All Right
This week, we talk about how parents and the companies they work for are dealing with the stress of children who won’t go back to school because of the coronavirus.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends!
Hi Maitane. I’m sure you agree that it’s especially hard these days to be a working mom or dad. It’s dawning on tens of millions of parents that their kids won’t go back to school until next year because of rising coronavirus cases. To provide some relief, businesses are rethinking child-care benefits.
That’s right. Around 13% of American parents have lost their jobs or cut their hours because of a lack of child care. Options are bleak as 18% of child-care centers are closed and a startling 82% of programs don’t expect to survive a year. As a result, manufacturer Contec is considering funding local child-care programs in South Carolina and networking-tech company Cisco Systems is looking at using its on-site child centers for first through seventh graders to complete their online courses. Software maker Salesforce.com has already boosted its child-care benefits. Some kids will even join a 1-week virtual summer camp with coding lessons and baking.
Do you remember going back-to-school shopping with your parents? (I needed a new binder every semester.) That’s completely out of the picture for millions of families. So brick-and-mortar retailers are dealing with yet another sales headache. One estimate projects that spending for elementary and high-school students will drop to its lowest level since 2015. Some companies like Bed Bath & Beyond, which has a big back-to-college business, are lowering prices to try to stay attractive. Office-supply store Staples has added cleaning supplies and protective equipment to its roster.
And don’t forget how this virus has hit working moms in particular. Women have exited the workforce at a slightly higher rate than men during the pandemic, but those numbers could be fluid since families are still waiting to hear whether schools will reopen.
That’s troubling news when you think about the gains women have made in the last decade. Now let’s take a look at the financial markets. Anything to point out, Maitane?
Yes! During the coronavirus we've seen a new trend emerge: Some stocks are moving differently than the broader market. For example, before the coronavirus, shares in videochat app Zoom used to move in the same direction as the S&P 500 index. This has changed during the pandemic. Zoom's shares have nearly quadrupled this year as many of us have turned to the software to work remotely and stay in touch with friends. The stock has also outperformed when the market has done poorly, which means Zoom is now moving in the opposite direction of the market. A similar trend can be seen in the performance of certain tech and pharma stocks.
What am I looking at? The chart above shows the performance of Zoom’s stock since it started trading on the stock market last year. Before the pandemic, its shares used to move in the same direction as the S&P 500 but this trend has changed.
Interesting! Zoom is a company to watch, especially when we eventually go back to the office. Anything else on your mind, Maitane?
There is. The European Union finally reached an agreement this week on a $2.06 trillion recovery package to provide relief from the economic downturn. The EU wants to bake its goal of becoming carbon-neutral by 2050 into its economic recovery plan. That’s why investors are betting renewable-energy companies and insulation providers will benefit from the bloc’s green ambition. Fund managers expect hundreds of billions of euros to go to renewable fuels, energy infrastructure, transportation and construction over the next thirty years.
We’ll keep watching how this evolves. Now let’s open it up to our readers: What do you think companies should do to help parents with child care?
Share your thoughts below or catch us on Twitter. Your words could appear in our next edition! Have a great weekend and remember to wash your hands. 👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardomaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy