The Service Economy Meltdown  <font color="#6f6f6f">The New York Times</font>

March 16 was the last day David Engelsman walked into the Jackrabbit, an acclaimed restaurant at the boutique Duniway Hotel in downtown Portland, Ore. The lead server on morning duty, Mr. Engelsman was told before his shift started that his job was no longer needed. He left early, at 10:30 a.m. The restaurant didn’t reopen the next day.

A total of 330 workers at the Duniway and another Hilton property across the street have been let go since then. With two autistic children, a wife with a severe heart condition and now no health insurance, Mr. Engelsman has devoted much of his time to the fight by his union, UNITE HERE, to get Hilton to make health-plan contributions for laid-off workers until the end of the year. “We’re left standing here with nothing,” he said. “I know I sound dramatic, but it is dramatic.”

With 11.5 million jobs lost since February and the government’s monthly report Friday showing a slowdown in hiring, stories like this have become painfully common. When companies dispatched office staff to work remotely from home, cut business trips and canceled business lunches, they also eliminated the jobs cleaning their offices and hotel rooms, driving them around town and serving them meals.

calculated that 37 percent of jobs can be done entirely from home. Those jobs tend to be highly paid, in fields like legal services, computer programming and financial services. And they tend to concentrate in affluent areas like San Francisco; Stamford, Conn.; and Raleigh, N.C.

Recent research by the economists Edward Glaeser, Caitlin Gorback and Stephen Redding found that when Covid-19 struck, activity — measured by the movement of cellphones in and out of ZIP codes — declined much more sharply in neighborhoods where a larger share of residents had jobs that could potentially be done from home.

estimate that in the year to Aug. 9, consumer spending in high-income ZIP codes declined 8.4 percent, with the impact felt disproportionately by industries that rely heavily on the nation’s low-wage labor force: restaurants and hotels, entertainment and recreation services.