In the early 2020’s February, the coronavirus pandemic hit the world and especially affected the big countries including the USA.
The pandemic devastated the US market, and labor forces upon its arrival. It had a significant effect from February 2020 to February 2021, and it is estimated that around 8.5 million employment was decreased during this one year of pandemic.
According to the expert reports, the US employment rates can come on track, but it would take around 3 years to make the conditions as they were before the pandemic hit.
Covid-19 had proved to be the biggest loss in the USA economy as it affected millions of people to lose their jobs, especially the women were affected more than men. Moreover, amongst the young generation, those with less educational qualification were highly impacted.
We will here see some of the facts that will explain to you how the covid-19 recession has largely impacted the labor class.
- 2020 is considered as the worst year especially for the women as their number is huge in terms of quitting the labor force when compared to men, even though the women labor force is less than 50% in the workforce.
According to reports, around 2.1 million women and 1.8 million men left the labor force. They were reluctant to work and became inactive. This decrease is similar to 3.1% and 2.1% for women and men respectively.
Not only the number but also the rate of participation decrease for both the genders. Women on one side reduced to 55.9% in February 2021, compared with 57.9% in February 2020, men on the other hand were reduced in their participation from 69% to 67.1% over the same time period. Overall there was a decrease of 2% in the participation in the labor force, from 63.3% – 61.3%.
The reason affecting women in the pandemic is due to the direct effect on the service sector, here the women have the maximum participation including the hospitality, health, educational sectors, and many more.
- In the previous point, we read about women decrease more than men, but among the women, the black and the Hispanic women were largely affected.
It is estimated that from 2.4 million women who had to leave the jobs, around 582,000 were Hispanic women and 511,000 were Black women.
These numbers of Hispanic and Black women are 46% of the total decrease in the women labor force, but when talking about total women in the USA, it is 1/3rd of the total women labor force in the USA.
The main reason for Hispanic women leaving is that they have more presence in the hospitality and leisure sectors that were affected the most.
- The first wave of pandemic set back the employment sector. But, even after a year, the conditions are looking getting worsen as according to some reports, there was a sharp increase in unemployment rates of women from 3.4% in February 2020 to 15.7% in April 2021, when compared to men’s unemployment increase rate from 4.1% to 13.3% during the same time period. Surely, we can say that here also the women faced more challenging times than men. By February 2021, the unemployment rates of both men and women came at a similar point at around 9.9%.
- Currently, the situation for the Black and Hispanic workers has not improved. They are still suffering great unemployment as the sectors they majorly work on are still facing bad times. Talking about Black men and women, the unemployment rates have experienced a drop in their peak from 17.3% in May 2020 to 9.2% in February 2021. The rate of unemployment for Black men has also reduced from 16.1% in June 2020 to 11.6% in February 2021. Still, the numbers of unemployed people are high and to be honest, the condition of the USA job market is not the one that is expected from such a developed nation.
- How can we forget the daily wages of workers and the ones working at lower wages? Going by the stats, these were the people who were affected the most during these hard times of covid-19.
According to reports and stats, from February 2020 to February 2021, the unemployment rates of these low-wage workers increased a lot more than other workers in the USA. Moreover, the employment reduced from 28.1 million to 24.8 million during this Feb 2020 to Feb 2021, also, the rate of this employment turned out to be 11.7% during the same time duration. Apart from this, there was a very slight change in the number of high-wage workers as they were still good to go as before the pandemic.
Covid-19 had impacted many sectors including the service sector, hospital sector, tourism sector, and many industries to shut down. This is the main reason for such outcomes in the UAS job market and this had left more than millions of people unemployed who are directly dependent on the government for even one-time food.
Situations will improve slowly and gradually but the impact improvement will take a lot of years to come. A similar recession was seen during the great recession in the USA in which the middle-class people were largely affected than the other ones. This time the recession is more complex and will last longer and the duration can’t be predicted.