Low-Income Workers Hit Hardest by Unemployment

• Author: Chris Remington
• Posted: 2024-03-12

Before the April jobs report came out last week, March was the worst month in American history for job losses. Though the nation’s focus has been on the dangers of Covid-19 and the job losses in a general sense. Not too many people have taken time to really read between the lines to see who was the most affected by this crashing economy. According to CNN Business’s new report put out on May 14, 40% of all Americans who lost their jobs in March were low-income workers, primarily made up of minimum-wage positions and the working poor.

Food service industry jobs have really cut back their employees in the past two months, especially in March, when America was in a mad dash to start up with the lock-downs. The same holds true for retailers. Seeing as they were considered essential, they still cut back on their numbers of employees and cut back on store hours and employee working hours, so people who weren’t making a lot of money to begin with were the ones ending up with fewer hours or out of work entirely.

Though that’s just part of the new report to be released, originally put out by the Federal Reserve Bank. The real kicker is that over 40% of all Americans to suffer either job losses or lost hours were already in the bracket making under $40k annually and who didn’t have savings. Many also do not have health insurance and no disposable income. So what this virus has done, in effect, is attack the world’s most vulnerable people.

For wealthier people who can afford nutritious diets and healthcare, they’re doing just fine. Even some big-name celebrities who got the virus bounced back, as they were healthier, had cleaner environments, and received better care than others. This virus seems inherently cruel, if we were to judge it based on human morality. It attacks hardest the elderly of our society, who are already suffering with health issues. It preys on overweight people with diabetes and other pre-existing conditions. And it goes after the poor with a gusto that would seem almost intentional if we didn’t know better.

The poor are always less prepared for something like this. Many people with money had no trouble sheltering in place, as they had stocked pantries and could afford deliveries for necessary items, and they didn’t live in crowded inner cities where they were at higher risks. Poor people don’t have too many options except to expose themselves to this virus in many situations, and they do a lot worse with the virus if they happen to contract it. Losing jobs that already aren’t as good is really compounding these issues.

The poor are also undefended compared to the middle-class and wealthy. Think about how a lot of poor people live, with upwards of three generations of family, multiple people in one house. So if there’s one person working in an essential job with bills that need to be paid, the entire household is likely to get sick if they get sick. So what this virus does is shine a brighter light on the state of inequality in our society.

The Impacts of This Trend

The wealth gap just prior to the virus was the worst it’s ever been in human history. 99% of wealth was basically controlled by the top 1% of people. Wherever one might stand on this issue, any honest person has to see that the virus is just making things a lot more unequal. As wealthy people are going to stay healthier, they can also continue doing business. Banks aren’t shut down. The stock market isn’t shut down. Large corporations not only remain open and profiting, but they’re also receiving federal handouts. Though the little guy’s plumbing shop, electricity business, lawn care service, etc? Gone. Likely not coming back either. And what is this person going to do? The government is bailing out their business, though despite the stimulus supposedly handing out small business loans, it’s nothing compared to what the wealthy receive.

Everyone wants the world to get past this. Dozens upon dozens of nations are locked down with failing economies. And in every one, the poorer classes are suffering more than anyone. No matter where one stands on the politics, nobody wants people to suffer. Though until this virus has moved on, poorer people will likely be the ones continuing to lose their jobs.