UNIVERSITY PARK, Pa. — Job losses resulting from the coronavirus pandemic have affected wide swaths of the population, but workers in some demographic groups and industry sectors have been hit harder than others, according to "COVID-19 and Pennsylvania’s Economy," a series of reports compiled by researchers in Penn State's Center for Economic and Community Development.
The economists found that during a nearly eight-month stretch from February to October of this year, the rates of claims for unemployment compensation in Pennsylvania were highest for Black people, women, and workers age 65 and over. Industry sectors in which employees submitted high percentages of claims included accommodations and food services — such as hotels and restaurants — and arts, entertainment and recreation. Lost wages for workers filing claims during that time reached into the billions of dollars.
"The impact on workers of losing their jobs under COVID-19 can be devastating," said Timothy Kelsey, co-director of the Center for Economic and Community Development and professor of agricultural economics in the College of Agricultural Sciences. "Job loss and any resulting loss of income can be particularly challenging in single-earner households, threatening their ability to make rent or mortgage payments and buy food and other necessities."
He noted that it also can mean the loss of health insurance if workers receive coverage through their employers. "This makes households even more vulnerable in the pandemic when they may need such insurance the most," said Kelsey.
To gauge the impact of COVID-related unemployment, the economists analyzed unemployment claims submitted to the Pennsylvania Department of Labor from February to October of this year. They compared those data to information from the American Community Survey and the U.S. Bureau of Labor Statistics to determine the rate of unemployment claims among racial minorities, age and gender groups, and industry sectors at both statewide and county levels.
Kelsey pointed out that researchers looked only at those workers who are eligible to file claims for unemployment compensation, which excludes workers in the "gig" economy, self-employed individuals and independent contractors, such as drivers for ride-hailing services. Therefore, he said, the overall impact of COVID-related job losses likely is greater than the analysis suggests.