Connect with us


High Wage vs. Low Wage: Comparing Economic Recovery in America



High Wage vs. Low Wage: Comparing Economic Recovery in America

Economic Recession

The Briefing

  • The economic recession caused by COVID-19 has been especially devastating for low wage workers
  • While the recession is nearly over for high income earners, fewer than half the jobs lost this spring are back for those making under $20/hr

High Wage vs Low Wage: Different Economic Recoveries

While it’s not uncommon for low wage workers to bear the brunt of an economic recession, this year’s economic collapse has been exceptionally brutal for America’s lower income employees.

Employment rates for high wage workers have bounced back from their spring slump, but unfortunately, the recovery hasn’t been as pronounced for low income workers.

Less than half the jobs lost earlier this year have returned for those making under $20 per hour. To give you a broader perspective, here’s a look at the percent change of employment rates from February through to November 2020:

  Change in Employment Rate (%)
Date High Wage Workers (>$60k) Low Wage Workers (<$27k)
Feb 1, 2020 0.4% 0.2%
Mar 1, 2020 2.1% -0.7%
Apr 1, 2020 -9.8% -23.8%
May 1, 2020 -11.5% -37.0%
June 1, 2020 -2.8% -26.6%
July 1, 2020 -2.1% -20.4%
Aug 1, 2020 -2.2% -19.2%
Sept 1, 2020 -0.0% -19.8%
Oct 1, 2020 0.2% -19.2%
Nov 1, 2020 0.0% -20.0%

*Note: Percentage changes are compared to U.S. employment rates from January 2020.

As the table above shows, this recession has been tough for low wage workers. But why?

It’s Not You, It’s Your Industry

There are various elements at play, but one key factor driving this unequal recession is the type of work that’s been impacted by the global pandemic.

The sectors that have been most affected, such as accommodation and food services, are the industries that typically employ low wage workers. On the flip side, many high income workers are employed in industries that allow them to work from home.

Although several COVID-19 vaccines are now in sight, a return to “normal” can’t come soon enough for workers in hard-hit industries such as travel, tourism, and food services.

» Interested in learning more about COVID-19’s impact on the U.S. economy? Check out our full article: America’s $2 Trillion Economic Drop, by State and Sector

Where does this data come from?

Source: Opportunity Insights Economic Tracker.
Notes: This tracker was built using anonymized data from several private companies, such as credit card processors and payroll firms.

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

The post High Wage vs. Low Wage: Comparing Economic Recovery in America appeared first on Visual Capitalist.

Source link

Continue Reading
Click to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.