The Uneven Race to Economic Recovery

By: Jennifer Harper

As vaccinations have risen and health risks have started to subside, people have started to go back to work and the journey to economic recovery has begun. While many have gone back to work, and businesses have re-opened, lower paying industries and jobs have experienced a slower recovery.[1] Many of these jobs are held by people of color and people without higher education.[2] Workers of color and workers without higher education have experienced slower recovery rates and continued economic loss due to the types of jobs available, the lack of childcare options, and the new technological landscape within jobs.

Many of the jobs and businesses that were lost at the beginning and height of the pandemic were those with low average wages. The lowest paying industries generally account for 30 percent of all jobs, but 56 percent of the job loss between February 2020 to September 2021.[3] Workers of color have had slower job recovery in comparison to white workers in part due to historical job patterns.[4] 7.9 percent of Black workers and 6.3 percent of Latino workers compared to 4.2 percent of white workers were unemployed. Americans without college degrees are experiencing similar issues with slow job recovery.[5] Workers without college degrees are at about 4.6 million jobs below pre-pandemic levels, while most workers with a college degree had managed to recover their pandemic losses and found work by May.[6] Interestingly, even Black workers with college degrees are experiencing slowed recovery and higher unemployment than white high school graduates, highlighting that slower recovery is not just about education gaps.[7] Many of these people lost jobs because their employers shut down or fired people to stay above water, or the people were directly affected by the virus itself. While on paper it would seem that there are enough new job openings, especially in the restaurant and hotel industries, to help these groups recover, the jobs are often in areas the unemployed have not worked or are located too far away.[8] While some may be able to make these jobs work, there are some who are unable to relocate or work the difficult hours for minimum wage due to childcare costs.

The problems of childcare for working parents, especially mothers, is not a new issue, but the pandemic has exacerbated these issues and led to slower recovery for working mothers. A disproportionate number of working mothers unable to get childcare are Black and Brown and they cannot afford to look for new jobs in the restaurant and hotel sectors.[9] They are already experiencing economic difficulties from job loss during the pandemic. While many schools have re-opened, there have been bus driver and after-school program shortages.[10] Many cannot afford paying for childcare and trying to recover financially while working the open minimum wage positions.[11] Many minimum wage jobs do not have built-in childcare options or cover the cost of childcare. This means that a large portion of the paycheck can end up going towards covering the cost of a babysitter or after-school program. In addition to childcare, the job market has started implementing more technology into the job application and retention process, adding another barrier for the unemployed.

One of the most amazing things to come out of the pandemic was the new ability to get work done from home and host meetings through online platforms. While this benefited many businesses, it has also led to increased difficulty in finding jobs. People are now expected to be able to complete interviews through zoom, go to meetings online, and be able to essentially run most business functions from home.[12] People of color and those without college degrees were some of the hardest hit people in the pandemic, meaning that many of them are economically unable to have extensive technology, access to reliable Wi-Fi, or the space to have quiet areas in their home to be able to properly conduct interviews. Some libraries have computers and hotspots for rent, but this is not a wide-spread sustainable option to help the unemployed.

While recovery has not been great for many groups, the slower recovery rate amongst people of color and those without college degrees has once again highlighted the fact that there needs to be more programs and help in place to help everyone recover.[13] While libraries have been able to lend computers, the government has given stimulus checks, and there are open positions in minimum-wage jobs, more needs to be done to help unemployed individuals be able to take these jobs. One step in the right direction would be a focus on more childcare options and more access to the technology that has become a staple in most post-pandemic jobs.

[1] Heather Long and Andrew Van Dam, ‘The struggle is real’: Why these Americans are still getting left behind in the recovery, The Washington Post, Oct. 7, 2021.

[2] Tracking the COVID-19 Economy’s Effects on Food, Housing, and Employment Hardships, Center on Budget and Policy Priorities, Oct 13, 2021.

[3] Id.

[4] Id.

[5] Id.

[6] ‘The struggle is real’: Why these Americans are still getting left behind in the recovery, Supra note 1.

[7] Id.

[8] Id.; Anneken Tappe, Here’s why the rest of the jobs recovery will be bumpy, CNN, Oct. 7, 2021.

[9] ‘The struggle is real’: Why these Americans are still getting left behind in the recovery, Supra note 1.

[10] Id.

[11] Id.

[12]Id.

[13] Tracking the COVID-19 Economy’s Effects on Food, Housing, and Employment Hardships, Supra note 2.