Coronavirus Has Cost Workers $9,000 in Lost Income
May 19, 2020
U.S. workers have lost out on $1.3 trillion in income due to the coronavirus lockdowns, and an average of nearly $9,000 per worker, according to research from Oxford Economics.
The majority of these losses come from the 36 million Americans who have lost their jobs, but even workers who have kept working have faced losses. Almost 20% of the total lost income reflects workers who have remained employed but been forced to take reduced pay or fewer hours.
A separate study found that even once laid-off workers find new employment, they will likely have lower income when they do return to work. The study found that nearly half of the workers are likely to accept lower pay once they find a new job, with the average income reduction being about 16%. This pay reduction increases with age, with those between the ages of 50 and 61 facing a likely pay cut of 23% once they find new employment.