It describes the serious situation of the economy of the USA, and its effect for the next few years. The following is the second potential effect.
Secondly, you can have some potential long-term effect on the economy, what economists called scarring, which is that the longer people are detached from the labor force, the longer they don't have a job for, the harder it becomes for them to get a job. Their skills don't keep up with what's going on in the workplace, and the more you can really have permanent damage, permanent hit to those people themselves and to the economy's potential.
For what? I think the word "for" is redundant, isn't it?