Saturday, June 13, 2020

Fed Report Says Coronavirus Shock Has Hit Low-Wage Workers Hardest

By Nick Timiraos of The WSJ. Excerpts:

"Employment had fallen nearly 35% from February to mid-May for workers who were previously earning wages in the bottom fourth of wage earners, the central bank said Friday in its semiannual report to Congress. Higher-wage earners, by contrast, had seen employment fall by 5% to 15%.

Because lower-wage earners are disproportionately African-American and Hispanic, unemployment has risen more sharply for those groups."

"“As lower-paid workers are disproportionately employed by small businesses—which typically have fewer financial resources than larger firms—they may be at heightened risk of seeing their former employers shut down and hence experiencing the scarring effects of permanent separations,” the report said."

1 comment:

Anonymous said...

Thanks to the author for pointing out the struggle of American Black people in the this country. Before the pandemic, there was an epidemic if i may for the American Blacks en masse when it comes to socioeconomic status. For a primary group in this country to still be on the bottom is a travesty. This position is what leads to criminal activities for sport. Sorry to go off on a rant, but i know that's a topic for a different forum. Thanks for sharing the public data.