This Fact Sheet shows that the major industries most immediately impacted by the COVID-19-related economic shutdown – leisure and hospitality, retail trade, transportation and warehousing, and other services – employ large numbers of Californians in the state’s largest metropolitan areas.1 Without a sufficient federal response to help workers and their families, the shutdown will have a ripple effect throughout local economies as people who lose work will lose income and be forced to cut back on their spending, thus reducing demand for business more broadly.
The COVID-19 public health crisis has upended the lives of Californians. While a relatively small but rapidly increasing number of Californians have gotten sick - and some unfortunately have died from the disease - millions more people have experienced serious disruptions to their jobs, schools, child care settings, and services as a result of the public health measures required to “flatten the curve” of infections. The potential health effects and economic effects may be severe – and Californians with low incomes will be especially hard hit. How should state policymakers respond, to ensure Californians who can least afford economic hardship and health setbacks receive the support they need now?
The Budget Center believes that even in times of crisis, California can lead with strategic and targeted policies that achieve the greatest impact for the children, families, individuals, and workers whose economic and social well-being is most affected by the consequences of COVID-19. We must remember the health of our economy and communities is only as strong as the support we extend to every Californian.
This Fact Sheet shows that the types of occupations most immediately impacted by the COVID-19-related economic shutdown typically pay low wages, providing annual incomes near or below the poverty line based on the Supplemental Poverty Measure for Los Angeles, even for full-time work. This means that the Californians who will bear the brunt of the economic slowdown live paycheck to paycheck even when work is plentiful and are unlikely to have savings to fall back on when their jobs disappear.
This Fact Sheet shows that the industries most immediately impacted by the COVID-19-related economic shutdown employ several million people in California.1 Without a sufficient federal response to help workers and their families, the shutdown will have a ripple effect throughout the economy as people who lose work will lose income and be forced to cut back on their spending, thus reducing demand for business more broadly.