ICYMI: N.Y. FEDERAL RESERVE ECONOMISTS: LOW-WAGE WORKERS HIT HARD BY PANDEMIC

Highlights Need For Big, Bold Economic Relief & Stimulus Package

While some argue that the economy is “roaring” and therefore no additional relief is necessary, the truth is that low-wage workers, and disproportionately young workers and workers of color, have been hit very hard by job losses during the pandemic, according to new analysis from economists at the Federal Reserve Bank of New York.

Economists are available to talk about these findings and the need to go big on Covid relief legislation — reach out to [email protected] to get in touch. 

KEY POINTS:

  • Employment among low-wage workers remains 14% below pre-pandemic level and is trending down again.

  • The pandemic has caused outsized job losses for women, minorities and younger workers. 

    • Initial job losses among women were 4 points higher than for men; initial job losses among Black and Hispanic workers were several points higher than for white workers.

    • Initial job losses for younger workers were nearly twice as large as for mid-career and older workers.

  • Workers in low-income and majority minority communities are less able to work remotely, putting them at disproportionate risk of contracting Covid.

President Biden’s Covid relief plan provides for another round of direct stimulus checks, an expansion of unemployment insurance, much-needed help to keep essential workers on the job, assistance for renters, homeowners and small businesses, among other key provisions.

Each provision of Biden’s plan would both rescue and grow the economy.

  • Expanding unemployment insurance now would support more than 5 million jobs, and boost the GDP by 3.7%, according to the Economic Policy Institute.

  • Every dollar spent on unemployment insurance generates a $1.64 increase in GDP.

  • Every dollar invested in state and local aid generates $1.36 in GDP growth

  • Federal Reserve Chair Jerome Powell credited the stimulus checks and additional unemployment insurance passed in 2020 with a rebound in household spending.

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