Unequal Impact of COVID-19 on Household Financial Stability April 21, 2020, 1pm ET
Welcome Guillermo Cantor Director, Applied Research Prosperity Now
Prosperity Now’s mission is to ensure everyone in our country has a clear path to financial stability, wealth and prosperity.
Webinar’s goals 1. Discuss findings from our recent report, “The Unequal Impact of the COVID- 19 crisis on households’ financial stability” 2. Share state/local examples of how this issue plays out in various communities 3. Discuss some policy solutions and advocacy opportunities.
Today’s Agenda and Speakers ✓ Report Highlights (Lebaron Sims) ✓ Insights from State and Local Partners (Andrea Caupain Sanderson and Liana Humphrey) ✓ Policy Updates and Advocacy Opportunities (Vanna Cure) ✓ Next Steps & Close
Housekeeping • This webinar is being recorded and will be mailed to registrants and available online • All webinar attendees are muted to ensure sound quality • Ask a question or share your thoughts anytime by typing into the text box of your GoToWebinar Control Panel • If you experience any technical issues, email gotomeeting@prosperitynow.org
The Unequal Impact of Covid-19: Report Highlights Lebaron Sims Senior Research Manager, Prosperity Now
The Landscape, Pre-COVID19 • Millions of Americans suffer income shortfalls — even during economic booms. • Financial emergencies don’t happen in a vacuum — but policy can help folks get through the worst.
Macroeconomic slowdown, lost income, and mass layoffs are the first visible signs of COVID- 19’s impact.
Who is most vulnerable during an economic crisis?
Who is most vulnerable during an economic crisis? 1. Over 45 million households without enough cash on hand to weather an emergency. AND DON’T HAVE ENOUGH SAVED TO COVER A POVERTY -LEVEL INCOME FOR 3 MONTHS IN THE EVENT OF AN EMERGENCY ($3,168 for individual, $6,550 for family of four)
Who is most vulnerable during an economic crisis? 1. Over 45 million households without enough cash on hand to weather an emergency. AND DON’T HAVE ENOUGH SAVED TO COVER A POVERTY-LEVEL INCOME FOR 3 MONTHS IN THE EVENT OF AN EMERGENCY ($3,168 for individual, $6,550 for family of four)
Who is most vulnerable during an economic crisis? 2. Tens of millions of American workers in low-wage occupations, or are paid hourly.
Who is most vulnerable during an economic crisis? 2. Tens of millions of American workers in low-wage occupations, or are paid hourly. Employment in Selected Low-Wage Occupations Combined food preparation and serving, 4,490,780 including food prep only Retail salespersons 4,448,120 Cashiers 3,635,550 Waiters and waitresses 2,582,410 Personal care aides 2,211,950 Maids and housekeeping cleaners 924,290 Home health aides 797,670 Packers and packagers (hand) 663,970 Bartenders 631,480 Childcare workers 564,630 Source: Prosperity Now analysis of Bureau of Labor Statistics 2018 Occupational Employment Statistics data.
Who is most vulnerable during an economic crisis? 3. Racial and ethnic minorities, immigrants, and women. Women are more likely than men to: • Work in service sector occupations — particularly food prep, personal care, and cleaning or maintenance positions. • Be paid at or below the minimum wage. • Live in a liquid-asset poor household.
Who is most vulnerable during an economic crisis? 3. Racial and ethnic minorities, immigrants, and women. Black and Hispanic or Latino workers are more likely to: • Be paid at or below the minimum wage, and have low weekly wages. • Live in a liquid-asset poor household. • Lack health insurance or other access to workplace benefits.
Who is most vulnerable during an economic crisis? 3. Racial and ethnic minorities, immigrants, and women. Immigrants are more likely than native-born individuals to: • Work in service sector occupations — particularly immigrant women. • Have low weekly wages. • Live in a liquid-asset poor household.
Who is most vulnerable during an economic crisis? 4. Undocumented immigrants, who are largely excluded from accessing social supports Undocumented workers comprise: • Over 25% of all farming jobs • 15% of all construction jobs • 9% of all service jobs But: undocumented workers are often barred from accessing public benefit programs, and are more likely to work in positions that require in-person attendance and interpersonal contact.
Who is most vulnerable during an economic crisis? 5. Low-wage workers in certain occupations and states that fail to provide protections and benefits to all classes of workers. Source: Prosperity Now Scorecard, 2020
Who is most vulnerable during an economic crisis? 5. Low-wage workers in certain occupations and states that fail to provide protections and benefits to all classes of workers. Source: Prosperity Now Scorecard, 2020
In order to avert catastrophe, we must ensure that the income, home, and health of every person are protected and preserved.
The Landscape, Post-COVID19 • The economic fallout from the COVID-19 pandemic may last years, and will hurt low- and moderate-income households, racial and ethnic minorities, immigrants, and women most. • Policymakers must strengthen our social safety net and consumer protections to mitigate the effects of a protracted recession — and to head-off future crises.
Local Perspectives Liana Humphrey Andrea Caupain Sanderson Chief Marketing Officer Chief Executive Officer Crisis Assistance Ministry Bryd Barr Place
Questions ▪ Share comments or ask questions at any time by typing the question into the text box on the control panel. ▪ Or use the chat box to tell us what impact you’re observing in your communities and with your clients.
Policy, Advocacy and Next Steps Vanna Cure Senior Advocacy Manager Prosperity Now
Moving Forward Through State Policy Increased Worker Strong Consumer Safety Net Supports Protections • Paid leave • Safe access to • Removal of cash asset limits • Expanding • Protections • Saving supports unemployment insurance against predatory short- term lending
Moving Forward Through Federal Policy Considerations for a fourth federal stimulus package: Additional funding Remove asset limits for free tax prep from public services such as assistance VITA programs Additional funding for CDFIs to provide Help families build financial services in emergency savings underinvested communities Extend CARES Act housing-related protections to manufactured homes
Federal Policy for a More Equitable Future ▪ Expand access to credit and affordable financial products ▪ Stronger consumer protections against abusive debt collectors and predatory lenders ▪ Housing affordability and stability or renters and owners ▪ Broadening safety net programs ▪ Innovative programs to build short- and long-term savings
Questions ▪ Share comments or ask questions at any time by typing the question into the text box on the control panel.
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