link to page 2 
INSIGHTi
COVID-19 Pandemic’s Impact on Household
Employment and Income
Updated July 22, 2020
The Coronavirus Disease 2019 (COVID-19) pandemic has affected households in numerous ways,
including shuttering business and schools, resulting in an economic recession and loss of employment
income. An experimental U.S. Census Bureau household survey has been fielded each week since late
April to track the implications of the COVID-19 pandemic on households. This Insight provides some
data from that survey, as wel as links to research on the pandemic-induced recession’s effects on
households and policy responses to them.
Not Working for Reasons Related to COVID-19
The Census survey asked respondents who were not working the week of the survey the reason they did
not work, with several of the reasons related to the COVID-19 pandemic. This is a different survey from
that used to produce the regular monthly labor force statistics (employment and unemployment), which
does not ask questions that are specific to the COVID-19 pandemic. Figure 1 shows that the estimated
number of people who reported not working for COVID-19-related reasons peaked during the week of
May 7, 2020, at 48.8 mil ion, and declined to 38.0 mil ion during the week of June 25. The decline
reversed in early July. For the week of July 9, a total of 41.3 mil ion persons reported not working for
COVID-19-related reasons. The largest group are those not working because of COVID-19’s effect on
business conditions (furloughs, layoffs, businesses closed).
Congressional Research Service
https://crsreports.congress.gov
IN11457
CRS INSIGHT
Prepared for Members and
Committees of Congress
link to page 3 
Congressional Research Service
2
Figure 1. Number of Adults Not Working for COVID-19-Related Reasons
In Mil ions
Source: Congressional Research Service (CRS) tabulations of the U.S. Census Bureau’s Household Pulse survey.
Notes: The reduction of those selecting any of the reasons comprising “related business conditions” for the week of June
4 coincided with the introduction of a new option for people to report that they were not working due to concern about
the spread of COVID-19 (catch or spread COVID-19).
In addition, many individuals responded they were not working in order to attend to children not in care
or in school. (The survey did not ask about lack of available child care tied to COVID-19. Many parents
have reported that their child’s school or child care facility has closed since the start of the pandemic.)
Loss of Employment Income
The Census survey asked respondents whether they or other members of their household experienced a
loss in employment income since March 13, 2020. Estimates from the survey find that through early July
2020, a little less than half of al adults (aged 18 and older) lived in a household that has lost some
employment income since March 2020. Additional y, this income loss has disproportionately affected
those who were in households that had lower income in 2019 or who were not white or who were
Hispanic.
Figure 2 shows the percent of adults living in households that lost employment income between March
2020 and early July 2020, by their 2019 household income and family type. Among al family types—but
particularly among families with children—those who lived in households with lower 2019 incomes were
more likely to lose employment income since March. At the same time, employment income loss was
widespread and occurred in al income categories. Some aged individuals also lived in households that
lost employment income, though rates among this group were lower than those for adults living with
children or who were under age 65 and not living with children.
link to page 3 
Congressional Research Service
3
Figure 2. Percentage of Adults in Households That Lost Employment Income Since
March 2020, by 2019 Income Category
Source: CRS tabulations of the U.S. Census Bureau’s Household Pulse survey for the week of July 2-7.
Figure 3 shows that, as of early July 2020, more than 6 in 10 Hispanic persons and 57% of black Non-
Hispanic adults were in households that lost some employment income over the three-month period. The
only group with a household income loss rate of less than 50% was Non-Hispanic whites.
Figure 3. Percentage of Adults in Households That Lost Employment Income Since
March 2020, by Race/Ethnicity
Source: CRS tabulations of the U.S. Census Bureau’s Household Pulse survey for the week of July 2-7.
Congressional Research Service
4
Policies Offsetting Employment Income Losses
Although there are policies in place that kick in during periods of economic loss (i.e., automatic
stabilizers), in March 2020, enacted legislation provided for temporary, ad-hoc enhancements of income
maintenance policies. These included the following:
Two temporary paid leave entitlements for some workers, which may be used for certain
COVID-19-related needs, expiring at the end of 2020.
Enhanced unemployment insurance (UI), including providing an extra $600 in weekly
benefits, expanding benefits to certain groups who usual y do not qualify, and providing
an extra 13 weeks of benefits. The extra $600 in benefits expires July 25, 2020, with
other provisions expiring at the end of 2020.
Help for smal businesses, including a program (Paycheck Protection Program) that could
help them maintain payrolls.
One-time direct payments to many individuals ($1,200 per person; $2,400 per married
couple, with $500 for each dependent).
The Census survey did not ask respondents how much employment income was lost, or how much of this
loss was replaced by benefits. (This wil not be known until the annual retrospective of income and
poverty is released in 2021.) Researchers have used computer simulation models to estimate the impact of
COVID-19-related employment losses and the impact of some of the policy changes to offset those losses
(see studies here, here, and here). In summary, these studies find that the expanded benefits and one-time
payments have the potential to offset projected increases in poverty from lost income due to COVID-19.
However, not al eligible persons may receive benefits. Additional y, the studies note the additional
income was concentrated in the April-July period. Income and poverty wil continue to be affected by
changes in economic activity and the degree to which temporary and permanent income maintenance
policies offset lost employment income.
Author Information
Gene Falk
Specialist in Social Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
Congressional Research Service
5
IN11457 · VERSION 4 · UPDATED
