University of California, Davis: Employment grows and a sharp decline in household income continues
The study by the UC Center for Surveys and Longitudinal Studies was carried out in 3,522 previously registered households and which yielded information on 10,202 people, whose data was collected between Wednesday, April 28 and Friday, May 7, 2021, by telephone survey.- Photo Pexels
This study carried out by the UC Center for Surveys and Longitudinal Studies , and headed by David Bravo and Ernesto Castillo, is an academic initiative based on the monitoring of a representative sample of approximately 16 thousand households throughout the country, started in 2016.
In the current context, in which Covid-19 has had a devastating effect on a global scale on the health and well-being of people, the study aims to document the impacts of this crisis, as well as to examine the resilience of families facing it and evaluating the impacts of the policies that are adopted. To do this, it considers information surveys in the same households between 2020 and 2024, which will allow a more rigorous study of social dynamics in this period.
This study for the month of May is a longitudinal study based on a sample of previously registered households, carried out in 3,522 households, and which yielded information on 10,202 people, whose data were collected between Wednesday, April 28 and Friday, April 7. May 2021, by telephone survey.
“In the current context, in which Covid-19 has had a devastating effect on a global scale on people’s health and well-being, the study aims to document the impacts of this crisis, as well as to examine the resilience of people. families facing it and evaluate the impacts of the policies adopted “UC Center for Longitudinal Surveys and Studies.
When presenting the results of the survey, David Bravo, director of the Center for Longitudinal Surveys and Studies, indicated that “one of the virtues of this study is that it anticipates the results later presented by the INE by a couple of months, considering the presented, it is possible to establish that the recovery of the jobs lost during the pandemic is a process that advances slowly and with several uncertainties associated with the control of the health crisis. The authorities should use the information on employment and income provided by this study to gradually adjusting its hiring subsidy and income subsidy programs to ensure that the reactivation process is promoted and the negative impact on families is cushioned “.
Employment versus health crisis
The results of the study showed that in April employment grew for the first time in 12 months, amounting to 7.79 million, exhibiting for the first time an increase in 12 months (of 51 thousand jobs or 0.7%), when compared to the last week of April 2020. The occupancy rate equals the highest registered since the crisis began (April 2020) and exceeds that registered in December 2020, which was the last measurement carried out by the UC survey.
If compared with the occupancy rate at the beginning of 2020, in July the employment rate fell by 15.6 percentage points, and at the end of April 2021 it has risen by 6.7 percentage points, recovering 43% of its fall . The drop in jobs was 2.4 million as of July 2020.
The study also revealed that men’s employment grew in 12 months for the first time. With this, it accumulates an increase of 6.3 percentage points from the lowest point reached at the end of July 2020. As of late December, the male employment rate has recovered 36% from its peak drop in July.
For its part, female employment almost equals levels of 12 months ago. The employment rate or occupation rate is equal to the proportion of the population aged 15 years and over that is employed. The occupancy rate rises to 41.3%, only slightly lower than the rate registered at the end of April 2020. With this, it accumulates an increase of 7.1 percentage points from the lowest point reached at the end of July 2020.
“From the distribution of employed persons by economic activity, compared to July, there are increases in agriculture, commerce, transportation, accommodation and meals, financial services, professional activities and education” – Center for Longitudinal Studies and Surveys.
Regarding the recovery of employment, in April 2021 compared to July 2020, almost 1.1 million jobs have been recovered, 515 thousand jobs for men and 574 thousand jobs for women, and includes 267 thousand salaried jobs, 813 thousand independent jobs and 9 thousand jobs for private home workers
From the distribution of employed persons by economic activity, compared to July, there are increases in agriculture, commerce, transportation, accommodation and meals, financial services, professional activities and education.
Remote work
When asked, would you have been looking for work in April 2021 if we weren’t in the current health crisis? The proportion of the total inactive (those who are not employed or looking for work), a total of 1.42 million people declare that they would have been looking for work if we were not in the current health crisis, a percentage that is made up of 601 thousand men and 818 thousand women.
Also, the study shows that 27% of those employed worked remotely in April 2021, equaling the highest proportion during the pandemic.
Also, employers and own-account workers continue to show sharp declines in income since the start of the pandemic. 59% of self-employed workers and employers indicated at the end of April that their income had fallen since the start of the pandemic. This group indicates that their income has fallen by 50% compared to what was indicated in the first months of the crisis.
“It is possible to establish that the recovery of jobs lost during the pandemic is a process that advances slowly and with various uncertainties associated with controlling the health crisis” – David Bravo, director of the UC Survey Center
On the other hand, the sharp decline in household income also continues. 38.2% of households indicate that their total income has decreased compared to April 2020, and has fallen by 50% since the beginning of the crisis.
Also, 17% of households indicated that they had a complicated debt situation in April 2021, while 36% declared a moderately complicated debt situation. Households with a difficult debt situation fell significantly in July and August 2020.
Regarding the question, what do you think will happen during the next 12 months with your household income? In June and July, expectations improved, and in April 2021, the largest proportion of people believe that income will be maintained.
The UC-Covid 19 Employment Survey has had a great impact in the country, allowing the delivery of real-time data on the labor market in the context of the deep crisis generated by the pandemic. During 2021, it will continue to be carried out on a monthly basis in order to contribute information on the recovery of employment, the situation of household income and the evaluation of policies.