Census Data Reveals Nearly Half of Households Lost at Least Some Income Due to Pandemic

By:
Chris Gaetano
Published Date:
May 21, 2020
affection-1866868_1920

Data from the Census Bureau reveals that nearly half of Americans have lost at least some income over the past few months due to the pandemic, said the Wall Street Journal. Across all education levels, 47 percent have lost income due to widespread lockdowns and other coronavirus-related disruption. As one might expect, this number rises the less education one has and shrinks the more; it is 56 percent for those with only some high school education, 51 percent for those with only a high school degree or some college, and 38 percent for those with a bachelor's degree or higher. Among those who lost income, 15 percent of homeowners and 26 percent of renters said they could not make their monthly payments and had to either skip or defer them; within this group, 10 percent of homeowners and 20 percent of renters have little confidence they'll be able to pay next month either.

The report comes in the same week that the Congressional Budget Office issued a reporting saying that while the economy will experience some improvement over the latter half of this year, it won't be nearly enough to make up for all the losses that have happened in just a few short months. In the short term, it estimates that by the end of the second quarter, GDP will have contracted by a further 11.2 percent after a first quarter decline of 1.2 percent, so that would be more than 10 times worse than what we've seen so far. Following this, the CBO estimates GDP will then grow 5 percent by the end of the third quarter and 2.5 percent by the end of the fourth quarter, although this would still represent a net loss of 5.6 percent annually. The end of 2021, hosever, is estimated to see a 4.2 percent annual growth rate.

Globally, the World Bank estimates that the pandemic could end up pushing some 60 million people into extreme poverty. Even in its best-case scenario, 49 million people would still fall into this state. The World Bank defines "exteme poverty" as living on less than $1.90 a day.

MarketWatch recently reported on study by the Center for Risk Studies at the University of Cambridge, which said that, ultimately, the pandemic could cost the global economy $82 trillion, when the total economic output of the entire world in 2019 was estimated to be $87 trillion

Click here to see more of the latest news from the NYSSCPA.