The U.S. Federal Reserve’s report on the economic well-being of U.S. households in 2020 found nearly a quarter of U.S. adults said their finances were worse than last year.
A greater proportion of U.S. adults are reporting worse financially in 2020 than in previous years, the Federal Reserve said Monday, while those who entered the coronavirus pandemic were less certain that financial finances ended the year on even worse ground.
The Fed’s report on The Economic Well-Being of U.S. Households in 2020 found that nearly a quarter of U.S. adults report worse financially than last year-the highest part from the start of the survey in 2014.
And not all groups feel the disease is equally pandemic exacerbating longer -term inequalities, particularly at the level of race and education.
“A clear pattern from the survey is that the financial challenges of 2020 are unequal, and have often left entrants in the year with fewer resources,” according to the report.
For example, the gap between adults with at least a bachelor’s degree who reported doing OK financially last year and adults with little more high school education was 44 percentage points. – an overall percentage point higher than in 2019.
Less than two-thirds of African-American and Latino adults said they did well financially last year, compared with 80 percent of white adults and 84 percent of Asians. And the financial benefit gap between white adults and Black and Latino adults is growing four percentage points from 2017.
More educated Americans are more likely to be among those who have seen increases in their income and bankruptcy in the past year, while those without high school education are more likely to be counted among those who report falling incomes and bank balance.
Employment conditions are also important. People who continued their jobs during the pandemic were more likely to have a strong or improving financial situation in the past year, while those who suffered layoffs or increased unemployment-a marginalized group. of Americans with limited financial resources before the pandemic – saw their finances very well benefited by 2020.
Among workers laid off, some 45 percent would not have been able to pay their bills in November or would have struggled if they had been hit by an unexpected cost of $ 400. The share of Americans who fall into that category ” higher ”among African-American and Latino workers, as well as those with high school degrees or less, according to the report.
“Even as the economy improves, we are sure to see that some are still struggling, especially those who have lost their jobs and those who lack education, with the majority falling behind,” Federal Reserve Board Governor said. Michelle W Bowman. on the Fed website.
Increased child care needs resulting from remote schooling and daycare center closures have a direct impact on the wealth of Americans.
About 22 percent of parents report that they do not work or work less because of COVID-19 disorders-a group more likely to include African-American, Latino and single mothers as well as mothers who have little income.
In a possible spokesperson for many future misunderstandings, about 59 percent of parents with children in grades K-12 say their children learn less through remote schooling. they want to go to class in person.
The report comes from the Federal Reserve Board’s eighth annual Survey of Economics and Decision Making (SHED) that surveyed 11,000 adults in November last year – about eight months into the illness.