Majority of Americans scared about job security after COVID-19: Report
Americans will have to wait until Friday to see the first round of numbers related to jobless claims since the coronavirus began to spread widely, but one new report reveals many workers are suffering.
Thirty percent of Americans have seen cuts at work, according to a study from LendEDU. That breaks down to 6% who have lost their jobs entirely, 13% who have seen their hours partially cut and 11% who still have their jobs but have had their hours cut entirely. Just over one-third of respondents (35%) have seen no changes at their jobs. Nearly two thirds of respondents (64%) said they were living paycheck to paycheck before COVID-19, including 82% of those who lost their jobs.
Credit unions across the country have moved to reduce branch access as a result of the outbreak, shifting those employees who can work remotely to do so while closing off lobbies and rerouting branch traffic to drive-thru lanes and ITMs. At least one credit union has also pledged to give staff a $1,000 bonus to help lessen the pandemic’s economic impact on its workers, a move JPMorgan Chase has also taken.
Job security remains a concern for many Americans, according to the study. A majority of respondents (57%) said COVID-19 had made them more concerned about employment while nearly half of those who haven’t seen any changes (48%) are still concerned. That figure rises to 67% and 73%, respectively, for those who have seen a partial decrease in their hours or have had their hours cut completely but are still technically employed.
The coronavirus is also cutting into consumers’ savings. Forty-four percent of those who responded to the LendEDU study said they had dipped into emergency savings as a result of the outbreak. LendEDU’s data showed the average American has spent just over $335 on food and supplies related to the pandemic. Forty-two percent of respondents said they anticipate taking on additional credit card debt as the outbreak and social distancing continues, including 61% and 69% of those who have seen paritial or full reductions in hourly work, respectively.