High-wage workers are getting all the jobs
Low-wage workers have borne the brunt of job losses in the United States during the coronavirus pandemic, research conducted by economists at the New York Federal Reserve shows.
The worst stretch came when the virus first took hold in the U.S. in March and April. At that stage only high-wage workers (in the study this refers to anyone making more than $85,000 annually) saw their job rates remain steady, while the lowest wage-earning group (individuals making less than $30,000 annually) experienced the most significant decline, at more than 33 percent. The two middle-wage groups — those earning between $30,000 and $50,000 and $50,000 and $85,000 — declined at 18 percent and nine percent, respectively.
The economic situation improved throughout the summer, and subsequently the employment gap between wage groups narrowed "considerably," but things took a turn for the worse again in the fall. Now, while high-wage earners are actually employed at rates slightly above pre-pandemic levels, low-wage worker employment remains 14 percent below and trending downward.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The New York Fed suggests, as one might imagine, these trends are related to the fact that many industries that have been hit the hardest — hospitality and retail, for instance — employ a higher amount low-wage workers, while high-wage workers often have more flexibility in their jobs and can work remotely. Read more about the research findings here. Tim O'Donnell
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
'Make legal immigration a more plausible option'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
LA-to-Las Vegas high-speed rail line breaks ground
Speed Read The railway will be ready as soon as 2028
By Peter Weber, The Week US Published
-
Israel's military intelligence chief resigns
Speed Read Maj. Gen. Aharon Haliva is the first leader to quit for failing to prevent the Hamas attack in October
By Justin Klawans, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published