Who is at the highest risk during the crisis?
Low-income families face the greatest risk during the crisis
Coronavirus has caused a crisis that impacts the health and wealth of the American people. We all know that during this pandemic that many businesses have had to close, and people have had to social distance themselves from one another. Those who work in service industries like hospitality, restaurants, and retail have had their incomes impacted the most because these types of establishments have shut down more so than others.
Losing your income is never a good thing, but many people who have been forced to work during the pandemic put themselves at higher risk. Delivery people, grocery store clerks, as well as those who work healthcare, might have a paycheck, but they could get sick at any moment. If you are one of these low wage workers, you are at a higher risk than the people that are social distancing by working from home. Nearly 20% of the adult population in the United States are classified as low-income. That is a sizable portion of the country who is likely to face financial or health problems.
Why are low-wage workers at risk?
If you work a low-wage job, your job is usually very expendable and because of this, your income can change very quickly if a company decides they do not need your services anymore. During the crisis, we have seen many companies lay-off employees in order to save money. Due to the mix of temporary unemployment as well as permanent unemployment due to business closures, a record number of unemployment filings have been reported. According to data from the government a vast majority of unemployment filings have been from Americans who worked in service industries.
Another aspect to consider is that many low-wage workers work part-time or are paid hourly. So even those who didn’t technically lose their jobs have had their hours cut back dramatically. It is also important to keep in mind that those that have jobs, are still exposed to close contact with others more frequently and could easily get sick. Either way you look at it, it’s not a good situation. A recent study found that 10% of low-wage Americans reported being in poor health. That is why it is important to take the steps you need to protect yourself in these tough situations. If you have lost your job, make sure to file for unemployment in order to get the government assistance necessary to make this situation more manageable.
Other impacts of the crisis to be aware of
Even before the crisis, most low-income Americans used their employer for medical insurance. That means that people who lost not only their jobs, lost their coverage as well. Traditional insurance like COBRA is typically not affordable for most families. Since you may be looking for healthcare coverage, it is important to know the type of assistance options that are available. You may be eligible for Medicaid or another insurance subsidy if you are below the poverty line. A good rule of thumb is to begin the application process as soon as you lose coverage.
Even before the crisis, a good number of low-income Americans were facing hardship. When the crisis hit it made things even worse. One in every four low-income Americans were in a family that didn’t have anyone with a full-time job. Also, one in every two Americans lived in a household that earned below the poverty line. What is more, in a recent report one in every three Americans said they were living paycheck to paycheck and had serious concerns about their financial wellbeing. Rent is generally more expensive than a mortgage and almost all low-income Americans rent instead of buy. The cost of rent will continue to eat away at the money families spend on food, savings, and other essential expenses a family needs to get by.
The housing situation itself where poor Americans live is also a problem. In many cases, there are several families living together and more than three adults to a household for low-income earners. It is more difficult to make sure people in the household are properly clean and self-isolating if more people are living under the same roof in a smaller area. If they live in a house with someone with special health needs, which is more likely if you are poor, that also increases the overall risk to the home. If you want to read more information about the importance of cleanliness and personal hygiene during this time. However, when times are tough it is more difficult to focus time and energy and keeping yourself healthy and safe when life is throwing so much stress on you. The mental health conditions for low-income Americans is also in a disastrous place. In a recent article, we highlighted all the ways you can cope with the stress going on right now. If you or a family member are struggling with mental health, it would be smart to seek help.
What comes next?
We know that many low-income American families are struggling right now and have financial and health hardships that are out of their control. Even though the crisis has subsided in many parts of the country we are not out of the woods yet. The government is trying to do their part and they have passed a few laws to help those people facing health and financial hardship. They passed the Families First Coronavirus Response Act and CARES Act give food and money to families in need. There is also government help for small businesses to help them pay their employees and stay afloat.
The important thing to know is that there are benefits and programs available to you and your businesses if you need help. We know for certain that low-income workers will be impacted the most. You need to make sure that you and your family have adequate medical and financial coverage because we do not know how long this crisis is going to last.