The U.S. Federal Reserve report on the economic well-being of American households in 2020 found that nearly a quarter of American adults said they were worse off economically compared to the previous year.
A higher proportion of adults in the United States reported that they were financially worse off in 2020 than in previous years, the Federal Reserve said Monday, while those who entered the coronavirus pandemic with a financial base less secure they ended the year in even stranger economic terrain.
The Fed’s report on the economic well-being of American households in 2020 found that nearly a quarter of American adults reported that they were worse off financially than the previous year, the highest share high since the survey began in 2014.
And not all groups felt this pain just as the pandemic exacerbated the longest inequalities, mostly for educational reason and level.
“A clear pattern of the survey is that the financial challenges of 2020 were uneven and often left behind those who entered the year with fewer resources,” the report states.
For example, the gap between adults with at least a bachelor’s degree who reported working well last year and adults with less than high school education was 44 percentage points, a total of ten percentage points higher than in 2019.
Less than two-thirds of African American and Latino adults said they were doing well financially last year, compared to 80% of white adults and 84% of Asians. And the difference in financial well-being between white and black adults and Latinos has grown by four percentage points since 2017.
Better educated Americans were more likely to be those who saw their bank income and balances increase last year, while those with lower high school education were more likely to have those who reported of the decrease in their bank income and balances.
The employment situation was also taken into account. People who kept their jobs during the pandemic tended to have stable or improving finances last year, while those who suffered layoffs or a prolonged period of unemployment, a group that biased toward the north. Americans who already had fewer financial resources before the pandemic, saw their financial resources. welfare deteriorates by 2020.
Among the workers who were fired, approximately 45% were unable to pay their bills last November or would have had difficulty receiving an unforeseen $ 400 expense. The proportion of Americans who belonged to this category was “substantially higher” among African American and Latino workers, as well as those with a high school diploma or less, according to the report.
“While the economy has improved, we can certainly see that some continue to have problems, especially those who have lost their jobs and those with less education, many of whom were left behind,” said the Governor of the Federal Reserve Michelle W Bowman in a press release. on the Fed website.
The increase in daycare demands from the remote school and the closure of daycares had a direct impact on the fortunes of Americans.
22% of fathers reported not working or working less because of interruptions to COVID-19, a group more likely to include African American, Latino, and single mothers, as well as low-income mothers.
In a possible omen of more disparities on the horizon, approximately 59% of parents with K-12 grade children said their children did not learn as much through remote schooling as if they had attended class in person.
The report is based on the Federal Reserve Board’s eighth annual home economics and decision-making survey (SHED) that surveyed 11,000 adults in November last year, about eight months after the pandemic. .