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Some Workers Have Been Hit Much Harder than Others by the Pandemic

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Abstract

As the COVID-19 pandemic took hold in the United States, in just two months—between February and April 2020—the nation saw well over 20 million workers lose their jobs, an unprecedented 15 percent decline. Since then, substantial progress has been made, but employment still remains 5 percent below its pre-pandemic level. However, not all workers have been affected equally. This post is the first in a three-part series exploring disparities in labor market outcomes during the pandemic—and represents an extension of ongoing research into heterogeneities and inequalities in people’s experience across large segments of the economy including access to credit, health, housing, and education. Here we find that some workers were much more likely to lose their jobs than others, particularly lower-wage workers and those without a college degree, as well as women, minorities, and younger workers. However, as jobs have returned during the recovery, many of these differences have narrowed considerably, though some gaps are widening again as the labor market has weakened due to a renewed surge in the coronavirus. The next post in the series examines differences in patterns of commuting during the pandemic, and finds that workers in low-income and Black- and Hispanic-majority communities were more likely to commute for work. The final post in the series analyzes unemployment dynamics during the pandemic, and finds that Black workers experienced a lower job-finding rate and a higher separation rate into unemployment than white workers during the recovery, though this trend has reversed to some extent recently.

Suggested Citation

  • Jaison R. Abel & Richard Deitz, 2021. "Some Workers Have Been Hit Much Harder than Others by the Pandemic," Liberty Street Economics 20210209a, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednls:89810
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    More about this item

    Keywords

    pandemic; heterogeneity; labor markets;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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