It has been a year since the coronavirus crisis brought the economy to its knees and some people may never recover financially.
Despite recent signs of improvement – including moderate labor accumulation and advances in Covid-19 vaccines, paving the way for a more open economy – about half of working adults in the United States said the pandemic impact would make it harder for them to achieve long-term financial goals, according to a new report from the Pew Research Center.
Among those who said their financial situation had deteriorated, 44% said it would take three years or more to return to where they were 1
More from Personal Finance:
Americans have increased their credit card debt because of Covid
Financial moment of America one year after Kovid
“Rich taxation” policies can make sense in a K-shaped economy
“There are certain groups who have not only experienced job losses in their households, but have to take on debts – these are things that have consequences for their future,” said Juliana Horowitz, one of the authors of the report.
Inequality is a hallmark of the pandemic’s recovery, marked by job losses for those below and growing wealth for those at the top.
This so-called K-shaped reconstruction has divided the nation in half, with the richest Americans doing even better than before, while millions more have failed.
Lower-income adults, as well as blacks and Spaniards, as well as those under the age of 30, were most likely to say that either someone in their household had lost their job or received a pay cut since the onset of the coronavirus virus. , found Pew.
As a result, they had to postpone the payment of certain bills and take on debts due to urgent financial concerns, including food insecurity.
Meanwhile, higher-income adults are more likely to say that their family’s financial situation has improved over the past year, mainly due to lower spending and saving more money.
“Higher-income adults are also more likely to have work that can be done from home, so they haven’t experienced job loss to the same extent,” Horowitz said.
About four in 10 wealthy Americans say their family’s financial situation has changed for the better, compared to 32 percent of middle-income earners and only 22 percent of lower-income adults, Pew said.
The majority of high-income adults – about 86% – said their finances were in good or even excellent shape. The same goes for about 6 out of every 10 adults with at least four years of college, white and Asian Americans, men and those aged 65 and over.
Alternatively, about three-quarters of lower-income adults, blacks and Spaniards, and those without higher education said their personal finances were in fair or poor shape.
The Pew Research Center surveyed more than 10,300 adults in the United States in January.
Subscribe to CNBC on YouTube.