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| Black Workers, Already Lagging, Face Big Economic Risks | Black Workers, Already Lagging, Face Big Economic Risks |
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| Black employment rates are plummeting, and the evolving wealth and income hit could fall on the shoulders of those ill-equipped to bear it. | Black employment rates are plummeting, and the evolving wealth and income hit could fall on the shoulders of those ill-equipped to bear it. |
| By Jeanna Smialek and Jim Tankersley | By Jeanna Smialek and Jim Tankersley |
| WASHINGTON — The coronavirus recession has hit black Americans particularly hard, amplifying racial inequalities that may worsen as the economy begins what is expected to be a slow climb back to where it was before the crisis. | WASHINGTON — The coronavirus recession has hit black Americans particularly hard, amplifying racial inequalities that may worsen as the economy begins what is expected to be a slow climb back to where it was before the crisis. |
| Black Americans have been slightly more likely to lose jobs or income in the recession that took root as states locked down their economies. They are more worried about the financial toll from the virus than white Americans and have far fewer resources available to ride it out, given that they earn less money and have had less ability to build wealth. And they are dying at higher rates from the virus than whites. | Black Americans have been slightly more likely to lose jobs or income in the recession that took root as states locked down their economies. They are more worried about the financial toll from the virus than white Americans and have far fewer resources available to ride it out, given that they earn less money and have had less ability to build wealth. And they are dying at higher rates from the virus than whites. |
| Unemployment rates for black workers had dipped to an all-time low just before the pandemic, a piece of good news that the Federal Reserve had latched onto as a sign that a strong economy was generating broadly shared gains. The pandemic has swiftly ended that era. | Unemployment rates for black workers had dipped to an all-time low just before the pandemic, a piece of good news that the Federal Reserve had latched onto as a sign that a strong economy was generating broadly shared gains. The pandemic has swiftly ended that era. |
| As the prospects for a rapid recovery dwindle and Americans face what could be a prolonged stretch of high unemployment and suppressed income growth, black households are confronting the prospect of a widening economic chasm. | As the prospects for a rapid recovery dwindle and Americans face what could be a prolonged stretch of high unemployment and suppressed income growth, black households are confronting the prospect of a widening economic chasm. |
| Workers across racial and ethnic groups have seen unemployment shoot higher amid state and local lockdowns in the pandemic, but many black workers fall into two fraught categories: They are either essential workers on the front lines, exposed to the virus, or they have lost their jobs. Black workers make up 11.9 percent of all employees but 17 percent of front-line workers, one study found. | Workers across racial and ethnic groups have seen unemployment shoot higher amid state and local lockdowns in the pandemic, but many black workers fall into two fraught categories: They are either essential workers on the front lines, exposed to the virus, or they have lost their jobs. Black workers make up 11.9 percent of all employees but 17 percent of front-line workers, one study found. |
| “We need to recognize that unless we are OK with black and brown families always bearing the burden of these sorts of things, we need to address the underlying disparities,” said Valerie Wilson, an economist at the left-leaning Economic Policy Institute. | “We need to recognize that unless we are OK with black and brown families always bearing the burden of these sorts of things, we need to address the underlying disparities,” said Valerie Wilson, an economist at the left-leaning Economic Policy Institute. |
| A series of charts illustrates the challenges facing black workers, including how wage disparities bleed into wealth disparities and why they entered the recession in such a fragile state. | A series of charts illustrates the challenges facing black workers, including how wage disparities bleed into wealth disparities and why they entered the recession in such a fragile state. |
| The jobless rate — the share of adults actively applying for jobs — is historically about twice as high for black people as for white people amid even the best economic conditions. | The jobless rate — the share of adults actively applying for jobs — is historically about twice as high for black people as for white people amid even the best economic conditions. |
| Many factors contribute to that divide, including racial discrimination and access to educational opportunities. Studies have consistently found evidence of discrimination against black job applicants. Companies are more likely to call back candidates with white-sounding names on their résumés, for instance. Black workers have lower education rates, a fact that is itself the outgrowth of long-running opportunity disparities, and people with less schooling are less likely to be employed. | Many factors contribute to that divide, including racial discrimination and access to educational opportunities. Studies have consistently found evidence of discrimination against black job applicants. Companies are more likely to call back candidates with white-sounding names on their résumés, for instance. Black workers have lower education rates, a fact that is itself the outgrowth of long-running opportunity disparities, and people with less schooling are less likely to be employed. |
| While job losses tied to the economic shutdown have spared no racial or ethnic group, there are reasons to worry that black and other minority workers could suffer disproportionately as companies call back some — but not all — furloughed employees. | While job losses tied to the economic shutdown have spared no racial or ethnic group, there are reasons to worry that black and other minority workers could suffer disproportionately as companies call back some — but not all — furloughed employees. |
| Black workers suffer from what some economists call a “first fired, last hired” phenomenon: They lose work early, and their unemployment rate continues to rise even as the labor market for white workers begins to heal. That can have lasting effects, because workers who get stuck on the labor market’s sidelines can see their skills become outdated, making it harder for them to get back into decently paying jobs. | Black workers suffer from what some economists call a “first fired, last hired” phenomenon: They lose work early, and their unemployment rate continues to rise even as the labor market for white workers begins to heal. That can have lasting effects, because workers who get stuck on the labor market’s sidelines can see their skills become outdated, making it harder for them to get back into decently paying jobs. |
| “Based on prior experience, I would expect that we won’t see the recovery look as even as the job losses have been,” Ms. Wilson said, explaining that while much of America has been furloughed, minority job losses may be more likely to turn permanent. | “Based on prior experience, I would expect that we won’t see the recovery look as even as the job losses have been,” Ms. Wilson said, explaining that while much of America has been furloughed, minority job losses may be more likely to turn permanent. |
| Black workers consistently earn less than white workers. That is partly because they are more heavily concentrated in jobs in low-paying service industries. But it is also true that black Americans earn less at every education level than comparable whites, and that black workers continue to be underrepresented in corporate board rooms and the highest-paying occupations in the country, including surgeons, dentists and computer and information systems managers. | Black workers consistently earn less than white workers. That is partly because they are more heavily concentrated in jobs in low-paying service industries. But it is also true that black Americans earn less at every education level than comparable whites, and that black workers continue to be underrepresented in corporate board rooms and the highest-paying occupations in the country, including surgeons, dentists and computer and information systems managers. |
| Federal Reserve Bank of San Francisco research has found that the pay gap between black and white workers is increasingly the result of biases that are tough to capture in data. | Federal Reserve Bank of San Francisco research has found that the pay gap between black and white workers is increasingly the result of biases that are tough to capture in data. |
| “Factors that are harder to measure — such as discrimination, differences in school quality or differences in career opportunities — are likely to be playing a role,” Mary C. Daly, the president of the San Francisco Fed, and her co-authors wrote in a 2017 analysis. | “Factors that are harder to measure — such as discrimination, differences in school quality or differences in career opportunities — are likely to be playing a role,” Mary C. Daly, the president of the San Francisco Fed, and her co-authors wrote in a 2017 analysis. |
| In part because they make less, black workers accumulate less wealth over time. The end result is that they have less money in their bank accounts to make it through extended economic weakness, as the United States could face in recovering from the pandemic. The typical black household has one-tenth the wealth of a typical white household, according to Federal Reserve data. | In part because they make less, black workers accumulate less wealth over time. The end result is that they have less money in their bank accounts to make it through extended economic weakness, as the United States could face in recovering from the pandemic. The typical black household has one-tenth the wealth of a typical white household, according to Federal Reserve data. |
| The last several decades have done relatively little to deliver wealth gains to black workers. In 1983, according to calculations by the New York University economist Edward N. Wolff, the median black household had a net worth that was the equivalent to about three months of its income — which is to say, if a black household sold everything it owned, it could replace its income for three months. In 2016, median black net worth was equal to about six months of median black income. | The last several decades have done relatively little to deliver wealth gains to black workers. In 1983, according to calculations by the New York University economist Edward N. Wolff, the median black household had a net worth that was the equivalent to about three months of its income — which is to say, if a black household sold everything it owned, it could replace its income for three months. In 2016, median black net worth was equal to about six months of median black income. |
| Updated June 30, 2020 | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| Over the same time period, the median white household saw its wealth rise from about two years’ worth of income to about three years’ worth. | Over the same time period, the median white household saw its wealth rise from about two years’ worth of income to about three years’ worth. |
| As a result, black households were about twice as likely as white households to say they would have trouble covering their bills if hit by an unexpected $400 expense in 2019, a recent Fed survey found. | As a result, black households were about twice as likely as white households to say they would have trouble covering their bills if hit by an unexpected $400 expense in 2019, a recent Fed survey found. |
| As part of their lower wealth share, black families are far less likely to own their homes. (And the homes they do own are often worth less, because of discrimination, than comparable homes in similar white neighborhoods.) | As part of their lower wealth share, black families are far less likely to own their homes. (And the homes they do own are often worth less, because of discrimination, than comparable homes in similar white neighborhoods.) |
| While the 2007 to 2009 downturn was painful for families who saw their housing values drop, leaving them underwater on mortgages, this period of weakness might disproportionately hit renters. The group was already grappling with low affordability, and could be at risk of falling behind on payments should expanded unemployment benefits and a one-time stimulus payment run out before jobs, hours and wages snap back. | While the 2007 to 2009 downturn was painful for families who saw their housing values drop, leaving them underwater on mortgages, this period of weakness might disproportionately hit renters. The group was already grappling with low affordability, and could be at risk of falling behind on payments should expanded unemployment benefits and a one-time stimulus payment run out before jobs, hours and wages snap back. |
| The government’s one-time $1,200 checks for qualifying households and $600 in additional weekly unemployment benefits have either supplemented or more than made up for missing wages for many American households. But the supplement to state unemployment payments is set to expire July 31, and many economists warn that the financial Band-Aid will be insufficient to get workers through a slow slog back to fuller employment. | The government’s one-time $1,200 checks for qualifying households and $600 in additional weekly unemployment benefits have either supplemented or more than made up for missing wages for many American households. But the supplement to state unemployment payments is set to expire July 31, and many economists warn that the financial Band-Aid will be insufficient to get workers through a slow slog back to fuller employment. |
| Even the nonpartisan Congressional Budget Office expects the weak labor market to last for years. | Even the nonpartisan Congressional Budget Office expects the weak labor market to last for years. |
| The concern is that the shadow of the pandemic will be more economically damaging for the same workers who are least able to handle that financial stress — and often, those people are black or from other minority groups. | The concern is that the shadow of the pandemic will be more economically damaging for the same workers who are least able to handle that financial stress — and often, those people are black or from other minority groups. |
| “Unemployment has tended to go up much faster for minorities, and for others who tend to be at the low end of the income spectrum,” Jerome H. Powell, the Fed chair, said at a news conference in late April. “Everyone is suffering here. But I think those who are least able to bear it are the ones who are losing their jobs, and losing their incomes and have little cushion to protect them in times like that.” | “Unemployment has tended to go up much faster for minorities, and for others who tend to be at the low end of the income spectrum,” Jerome H. Powell, the Fed chair, said at a news conference in late April. “Everyone is suffering here. But I think those who are least able to bear it are the ones who are losing their jobs, and losing their incomes and have little cushion to protect them in times like that.” |