Falmouth Unemployment Drops, But Concerns Remain For Winter
FALMOUTH, MA — At the height of the coronavirus pandemic, Falmouth's unemployment rate rose to 20.9 percent in April.
The closure of restaurants, hotels and other service industries amid Gov. Charlie Baker's initial closing of the Massachusetts economy halted Cape Cod businesses right as they began ramping up for summer, the region's busiest season.
In May, there were more than 700 active unemployment claims stemming from Falmouth's accommodation and food service businesses — by far the most effected industry. At the same time, there were nearly 440 unemployment claims from the retail sector, according to data from the Cape Cod Commission.
Fortunately in Falmouth, the town's economy started slowly bouncing back.
"Most businesses [in Falmouth] had a better season than we anticipated when this all started," said Michael Kasparian, the president of the Falmouth Chamber of Commerce.
According to the Massachusetts Department of Unemployment Assistance, Falmouth's unemployment rate dropped to 15.5 percent in July, which was below the state average of 16.2 percent.
Still, Kasparian admitted that no one is assuming the positive business trend in town will continue, especially as winter approaches and it's too cold to partake in outdoor dining. Landscaping and pavement companies will also likely take a hit, Kasparian said.
"Nobody knows how it's going to go once it's too cold to dine outside and if the number of seats inside will be increased or if people will feel safe eating inside.," Kasparian said.
Still, Kasparian remained optimistic because of the possibility that Falmouth's winter population will be larger than during a typical year.
Normally, Falmouth's population peaks around 50,000 in the summer and drops to a little under 32,000 in the winter. But because of the pandemic, Kasparian said there's a possibility some of the season homeowners stay put this winter.
"Forty-five percent of the homes are second homes, Kasparian said. "A lot of the feedback we got is that they're staying. They aren't going back to their main homes in Boston or out of state."
Kasparian added that a lot of seasonal homeowners on Cape Cod are retired or may have kids in remote-only classes. He said people seem to feel safer staying in Falmouth, where there are fewer people and fewer risks of COVID-19 infection.
This article originally appeared on the Falmouth Patch
