Is Los Angeles more hurting from the Economic Impacts of Covid-19 than other Counties?

Recent findings from a study conducted by the Center for Economic and Social Research of the University of Southern California assessed the economic impacts of the Covid-19 pandemic. The study revealed that Southern California residents had been most affected by Covid-19’s economic impacts than any other city in the US.

Critical things from the study

• The residents of Los Angeles County have lost approximately 1.3 million jobs because of the pandemic.
• African Americans and Latino account for the highest percentage of individuals who have lost their jobs.
• A higher percentage of the study’s respondents reported an increase in cases of anxiety and depression.

Spiking infection cases in LA

The Covid-19 infection cases spike in early June, giving the county’s department of health a massive task of handling emergency cases. While making a statement about the increasing infection cases, Dr. Christina Ghaly, who is the director of the department of health of LA County, expressed her fears about the possible shortage of ICU beds to handle patients with severe Covid-19 complications.

The federal and state governments have been encouraging residents to practice caution and recommended safety measures to reduce the spread of the virus. Although some sectors of the economy are gradually re-opening, the most significant fears have been how to curb the spread of the virus.

Harsh economic times for LA

While responding to Inside the Issues’ interview, USC’s Center for Economic and Social Research top sociologist Kyla Thomas said that they surveyed the county of Los Angeles and other regions of the US to determine how the county compares economically with the rest of the US amid the Covid-19. The survey’s findings established a 10% drop in employment points between mid-march and mid-April. The decline represented 25.5 million jobs across the United States.

The research noted a more significant decrease in employment levels in Los Angeles. The drop stood at 16%, representing a loss of 1.3 million jobs. Thomas said that the study could not estimate the primary reason for the massive job losses in Los Angeles within a month into the Covid-19 in the county. He attributed the decline to the possibility of having several “service sector” jobs in Los Angeles, and the measures to curb the Covid-19 could have impacted the demand for those services. However, Thomas added that USC plans to embark on more intensive research to establish why the county has been affected more by the pandemic than any other region in the US.

The study also explored data of other demographic aspects, including race, gender, and education. It revealed that job loss among African-Americans was 21% and 18% for Latinos. Women and less educated residents also reported high rates of job losses.

The increasing cases of job losses have resulted in more reported instances of anxiety, depression, and other mental conditions among residents as the hard economic impacts hit most households. Thomas said that they established a 9% rise in anxiety and depression symptoms across the United States from the study. Los Angeles County reported a 12% increase with at least 48% of the county’s residents aged 18 years and above experiencing mild to severe symptoms of various mental disorders.

Plans for more studies to determine the economic impacts of Covid-19

Thomas made a statement that they will conduct more surveys across the US and use the data to Los Angeles to determine how the county is performing economically amid the Covid-19. They will compare the current crisis to the great recession of 2008 and estimate how the nation’s path towards economic recovery.

Thomas observed that the high percentage of lay-offs is more likely to be temporary as individuals may regain their jobs as things gradually re-shape to normalcy. However, the pandemic has dramatically impacted the lives of residents and affected their routines and behavioral patterns. Most individuals, especially those working in formal and informal sectors, are feeling more economically insecure than ever. Health is another concern as the county slowly returns to normalcy as individuals still fear contracting the virus.