Race/Ethnicity and Employment Insecurity: Impacts of COVID-19 on the US Labor Force and Beyond

Using the Household Pulse Survey and American Community Survey, this study examines employment insecurity experienced across different racial/ethnic groups of the U.S. labor force under the pandemic disruptions. It highlights significant employment security disparities based on race, ethnicity, and income during the pandemic. However, there are no significant gender and racial disparities within the lowest income group when controlling for other conditions. In contrast, gender and racial disparities in EI are much more pronounced among mid-to-high income groups. Non-White individuals were disproportionately affected by job loss due to health and COVID-related employment issues, unlike Whites who faced unemployment more due to other factors. This pattern was more evident among lower-income groups. The trends shifted in later stages, with high-income Black and Hispanic workers becoming more likely to be unemployed due to non-health and non-employment reasons. Middle-income workers across all races were least likely to stop working for reasons other than COVID-related health or employment issues. In addition, regardless race or ethnicity, women more likely to be unemployed due to health reasons and less so due to employment issues compared to men, and the gender disparities increased with higher household incomes. We propose that the apparent immediate effects of the pandemic are actually indicative of deeper, systemic issues within the U.S. labor market, specifically the occupational segregation tied to race/ethnicity, gender, and class. Recovery efforts must take a holistic approach and integrate economic development policies, workforce development strategies, and social policies targeting poverty alleviation, health disparities, and people of color.