San Diego City Wire

Job declines among California’s low-income families have been much higher due to the COVID-19 pandemic than they were during the Great Recession, according to a new report.

The Public Policy Institute of California’s "Income Inequality and Economic Opportunity in California" study advocates for intentional policy action because without it the COVID-19 downturn likely will broaden income inequality.

“As policymakers plan for recovery, investments must reach communities that have historically been subject to underinvestment, especially low-income communities and communities of color,” co-author Tess Thorman said.

The U.S. Census Bureau reports that the racial composition of San Diego is 45% white, 34% Hispanic, 12% Asian, 5.5% Black, 1.3% Native American and 0.6% Pacific Islander.

“Prior to the pandemic, San Diego County fell in the middle of the pack in terms of regional income inequality out of nine regions in the state,” Thorman told the San Diego City Wire. “In 2019 high-income families at the 90th percentile had 9.7 times the income of low-income families at the 10th percentile. Statewide workers in leisure and hospitality, and personal services sectors have experienced the hardest hits in terms of job losses.”

As of Dec. 23, California had 1,925,007 coronavirus cases, resulting in 22,923 deaths, an increase of 1.1% from the prior day's total of 22,676, according to the state COVID dashboard.

Locally in San Diego, there were 129,716 coronavirus cases and 1,283 fatalities.

“Women experienced higher rates of unemployment and underemployment from April through September than men did, and women in low-income families were hit particularly hard,” Thorman said in an interview.

That’s because women are disproportionately burdened with child care and eldercare, as previously noted in the Southern California Record.

“While the gap in unemployment appeared to have closed by October, it could have long-term implications for the career trajectories and lifetime earnings of women who were out of work during this time,” Thorman said.

The report's recommendations for long-term policy interventions include investing in child care and early education, expanding access to and capacity at higher education institutions, and addressing racial and regional disparities in opportunity.

“[These] are all things that can be interpreted within San Diego County,” Thorman said. “As business sectors undergo shifts both in this crisis and during recovery, local governments have an important role to play in recognizing which workers will need support to transition into new jobs or new sectors.”