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report 2020-04-21 (Parker, Horowitz, Brown)

Summary

A Pew Research Center report released April 21, 2020, titled About Half of Lower-Income Americans Report Household Job or Wage Loss Due to COVID-19. It presents a survey of 4,917 U.S. adults on the American Trends Panel conducted April 7-12, 2020. The report finds that 43% of adults say they or someone in their household lost a job or took a pay cut due to the outbreak, up from 33% in March, and 52% among lower-income adults. It reports that 47% of adults have rainy day funds covering three months of expenses, 75% of upper-income and 23% of lower-income adults, and that most lower-income adults expecting a federal payment plan to use it for bills or essentials. The methodology section gives sampling errors, including plus or minus 2.1 percentage points for the total sample.

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“report 2020-04-21 (Parker, Horowitz, Brown).” Original at doi.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/job-loss-and-psychological-distress-during-the-covid-19-pandemic-longi-720bec7d8c/, SHA-256 1722e60e984ba5374705f7acbc4bebf066e75d748831bd355b3ce92e58e3c01c.

Full text

FOR RELEASE APRIL 21, 2020




BY Kim Parker, Juliana Horowitz and Anna Brown




 FOR MEDIA OR OTHER INQUIRIES:

 Kim Parker, Director, Social Trends Research
 Juliana Horowitz, Associate Director, Research
 Tanya Arditi, Communications Manager
 202.419.4372
 www.pewresearch.org


 RECOMMENDED CITATION
 Pew Research Center, April 2020, “About Half of Lower-Income Americans
 Report Household Job or Wage Loss Due to COVID-19”
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                                        PEW RESEARCH CENTER




About Pew Research Center
Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes
and trends shaping America and the world. It does not take policy positions. The Center conducts
public opinion polling, demographic research, content analysis and other data-driven social
science research. It studies U.S. politics and policy; journalism and media; internet, science and
technology; religion and public life; Hispanic trends; global attitudes and trends; and U.S. social
and demographic trends. All of the Center’s reports are available at www.pewresearch.org. Pew
Research Center is a subsidiary of The Pew Charitable Trusts, its primary funder.

© Pew Research Center 2020




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How we did this
Pew Research Center conducted this study to understand Americans’ assessments of their
personal financial situation during the current period of economic slowdown and high
unemployment rates caused by the coronavirus outbreak. For this analysis, we surveyed 4,917 U.S.
adults in April 2020. Everyone who took part is a member of Pew Research Center’s American
Trends Panel (ATP), an online survey panel that is recruited through national, random sampling of
residential addresses. This way nearly all U.S. adults have a chance of selection. The survey is
weighted to be representative of the U.S. adult population by gender, race, ethnicity, partisan
affiliation, education and other categories. Read more about the ATP’s methodology.

See here to read more about the questions used for this report and the report’s methodology.




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Terminology
References to white and black adults include only those who are non-Hispanic and identify as only
one race. Hispanics are of any race.

All references to party affiliation include those who lean toward that party. Republicans include
those who identify as Republicans and independents who say they lean toward the Republican
Party. Democrats include those who identify as Democrats and independents who say they lean
toward the Democratic Party.

References to college graduates or people with a college degree comprise those with a bachelor’s
degree or more. “Some college” includes those with an associate degree and those who attended
college but did not obtain a degree.

“Middle income” is defined here as two-thirds to double the median annual family income for
panelists on the American Trends Panel. “Lower income” falls below that range; “upper income”
falls above it. See methodology for more details.




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                                                                         Economic fallout from COVID-19 is
                                                                         hitting lower-income adults harder
                                                                         % saying …



As the economic toll from the coronavirus
outbreak continues to mount, a new Pew
Research Center survey finds the impact is
falling more heavily on lower-income adults – a
group that was feeling significant financial
pressure well before the current crisis. Overall,
43% of U.S. adults now say that they or
someone in their household has lost a job or
taken a cut in pay due to the outbreak, up from
33% in the latter half of March. Among lower-
income adults, an even higher share (52%) say
they or someone in their household has
experienced this type of job upheaval.

In addition to being among the hardest hit by
the economic fallout from COVID-19, lower-
income adults are less prepared to withstand a
financial shock than those with higher incomes.
Only about one-in-four (23%) say they have
rainy day funds set aside that would cover their
expenses for three months in case of an
                                                                         Note: Family income tiers are based on adjusted 2018 earnings.
emergency such as job loss, sickness or an                               Source: Survey of U.S. adults conducted April 7-12, 2020.
economic downturn, compared with 48% of                                  “About Half of Lower-Income Americans Report Household Job or
                                                                         Wage Loss Due to COVID-19”
middle-income and 75% of upper-income
                                                                         PEW RESEARCH CENTER
adults.1 And while 53% of lower-income adults
say they will have trouble paying some of their

1 Family incomes are based on 2018 earnings and adjusted for differences in purchasing power by geographic region and for household sizes.

Middle income is defined here as two-thirds to double the median annual family income for all panelists on the American Trends Panel. Lower
income falls below that range; upper income falls above it.




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bills this month, about a quarter of middle-income adults and 11% of those in the upper income
tier say the same.

These personal experiences bring into sharp relief the public’s overall assessment of the U.S.
economy. Only 23% of adults now rate national economic conditions as excellent or good, down
dramatically from 57% at the beginning of 2020.

Job losses continue to be felt more acutely by some groups than others. Roughly six-in-ten
Hispanic adults (61%) say they or someone in their household has lost a job or taken a cut in pay
due to the coronavirus outbreak. This compares with roughly half or fewer of black and white
adults. And adults without a bachelor’s degree remain more likely to report job or wage loss in
their household compared with college graduates.

The extent to which U.S. adults are prepared for a financial emergency also varies significantly
across demographic groups.
Overall, 47% of Americans say     Most lower-income adults say they will use stimulus
they have rainy day funds on      check to pay bills or cover essential expenses
hand that would cover their       Among those who expect to receive a payment from the federal government
expenses for up to three          as part of the coronavirus aid package, % saying they are most likely to use
months. While this is the case    the majority of the money for …

for a majority of white adults,                    Paying bills or for
                                                 something essential
those ages 65 and older and                       they or their family                            Paying Something
college graduates, it’s not the                          needs                  Savings          off debt       else

norm for most other groups.         All who expect
                                                             54                     21               14         10
                                         a payment
For example, only about a
third or fewer of black and         Upper income          34                          33             16           16
Hispanic adults, those younger
than 30 and those with no           Middle income           49                      23               16         11

college experience say they
                                    Lower income                71                11                11           6
have this type of rainy day
fund.                             Note: Based on those who provided an answer and didn’t indicate that they won’t get a
                                         payment or aren’t eligible. “Something else” includes those who said they will use the
                                         majority of the money to pay for something nonessential they or their family need or who
Among those who don’t have               volunteer that they will use if for some other purpose. Family income tiers are based on
                                         adjusted 2018 earnings.
emergency funds, relatively              Source: Survey of U.S. adults conducted April 7-12, 2020.
few say they could tap into              “About Half of Lower-Income Americans Report Household Job or Wage Loss Due to
                                         COVID-19”
other resources in order to
                                         PEW RESEARCH CENTER
make ends meet. Only 28% say




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they would be able to cover their basic expenses by borrowing money, using their savings or selling
assets.

Even without a financial emergency, many Americans say they have trouble paying their monthly
bills. About one-in-four adults (24%) say they cannot pay some of their bills or can only make
partial payment on them in a typical month. A larger share (32%) say they won’t be able to pay
their bills this month. The gap in the share saying they won’t be able to pay their bills this month
compared with an average month is particularly wide among Hispanic adults: 44% say they won’t
be able to pay all of their bills this month, while 28% say this is typically the case.

Given these financial constraints, more than half of adults who expect to receive a direct payment
from the federal government as part of its coronavirus aid package say they will use a majority of
the money to pay bills or for something essential for themselves
or their family. About one-in-five (21%) say they will save a
                                                                    Growing share of adults
majority of the money, and 14% say they will use it to pay off
                                                                    report job or wage loss
debt. The remaining 10% say they’ll use it for something else.2
                                                                    due to COVID-19
Again, there are differences by key demographic groups, with
                                                                    % saying this has happened to them
black and Hispanic adults, those without a college degree and       or someone in their household
those in the lower-income tier more likely to say they will use the because of the coronavirus outbreak
money to pay bills or cover essential needs.
                                                                                                                 March 19-24        April 7-12

These are among the findings of a Pew Research Center survey of                                                                             43
4,917 U.S. adults conducted April 7-12, 2020, using the Center’s                                                              33       33
American Trends Panel.3                                                                                          28      27
                                                                                                            20




                                                                                                          Been laid Had to               Net
Amid mounting unemployment claims, the share of American                                                   off/lost take a cut         either/
households that have experienced job loss or disruption has                                                  job      in pay            both
climbed significantly in recent weeks. Roughly three-in-ten                                            Source: Survey of U.S. adults conducted
adults (28%) say they or someone in their household has been                                           April 7-12, 2020.
                                                                                                       “About Half of Lower-Income Americans
laid off or lost their job because of the coronavirus outbreak. A                                      Report Household Job or Wage Loss Due to
                                                                                                       COVID-19”
third say they or someone in their household has had to take a
                                                                                                       PEW RESEARCH CENTER



2 “Something else” includes 4% who said they will use the majority of the money to pay for something nonessential they or their family need

and 7% who volunteer that they will donate it to charity, use it to help friends or family members, use it to pay their taxes, or use it for a
combination of needs. These subtotals do not add up to 10% due to rounding.
3 For more details, see the methodology section of the report.




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cut in pay due to reduced hours or demand for their work. Taken together, 43% of adults say they
have experienced at least one or both of these.

These shares are up significantly from just three weeks earlier. At that time, 20% of adults
reported job loss, 27% reported pay reduction and 33% said they or someone in their household
had experienced either or both.

As was the case last month, these experiences          More than four-in-ten adults say they or
are more concentrated among certain
                                                       someone in their household has lost a
                                                       job or taken a pay cut due to COVID-19
demographic groups. Hispanic adults are more
                                                       % saying this has happened to them or someone in their
likely than white or black adults to say they or
                                                       household because of the coronavirus outbreak
someone in their household has experienced
job or wage loss because of the coronavirus                             Been laid Had to take a     Net
                                                                       off/lost job cut in pay  either/both
outbreak. Roughly six-in-ten Hispanics (61%)
                                                                All adults   28            33              43
say this has happened in their household,
                                                                    White 24              29               38
compared with 44% of black adults and 38% of
                                                                    Black    32            34              44
whites.
                                                                Hispanic      41              51              61
                                                             Ages 18-29       35            45                54
Lower-income adults are more likely than
                                                                   30-49     30            39               49
middle- and upper-income adults to say they’ve
                                                                   50-64     28            32              42
experienced significant job disruption due to
the coronavirus outbreak. About half of lower-                       65+ 17              18              25

income adults (52%) say they or someone in                   Bachelor's+ 21               29               37

their household has lost a job or taken a cut in           Some college      30            37               46

pay due to the outbreak. This compares with                    HS or less    32            35               45
42% of middle-income and 32% of upper-                    Upper income 18                 26              32
income adults.                                            Midde income 26                  32              42
                                                          Lower income        39            41              52
These experiences also differ by educational           Note: White and black adults include those who report being only
attainment, with college graduates more                one race and are non-Hispanic. Hispanics are of any race. “Some
                                                       college” includes those with an associate degree and those who
insulated from the impact of the coronavirus           attended college but did not obtain a degree. Family income tiers
outbreak. While 46% of those without a                 are based on adjusted 2018 earnings.
                                                       Source: Survey of U.S. adults conducted April 7-12, 2020.
bachelor’s degree say they or someone in their         “About Half of Lower-Income Americans Report Household Job or
                                                       Wage Loss Due to COVID-19”
household has lost a job or taken a cut in pay,
                                                       PEW RESEARCH CENTER
smaller shares of bachelor’s degree holders
(37%) say the same.




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Though some demographic groups have been more hard hit than others, increases in the share of
Americans experiencing job upheaval in recent weeks are widespread. Across racial and ethnic
groups, income tiers, and educational backgrounds, the share of adults saying their household has
experienced job or wage loss due to the coronavirus outbreak has
gone up in recent weeks. The gaps across age groups that were      Fewer than half of U.S.
apparent in March are less pronounced now, as adults ages 30 to    adults have emergency
49 are now as likely as those younger than 30 to say they’ve       funds that would last
experienced a major job setback.                                   three months
                                                                    % saying they have rainy day funds
                                                                    that would cover their expenses for
                                                                    three months in case of emergency

                                                                           All adults               47
For Americans who have suffered job loss or seen their
                                                                               White                  53
paychecks diminished, cash reserves can be a temporary lifeline.
                                                                               Black           27
Fewer than half of all adults (47%) say they have emergency or
                                                                            Hispanic           29
rainy day funds that would cover their expenses for three months
in case of sickness, job loss, economic downturn, or other              Ages 18-29               36

emergencies; 53% say they don’t have this type of savings on                  30-49                 42

hand.                                                                         50-64                 44
                                                                                 65+                       67
The share who have rainy day funds differs drastically across           Bachelor's+                       66
demographic groups, and the groups that have been hardest hit         Some college                  43
by job and wage losses during the COVID-19 crisis are among the           HS or less            33
least likely to have these types of reserves. While 53% of white      Upper income                          75
adults say they have rainy day funds, much smaller shares of         Midde income                    48
Hispanic (29%) and black adults (27%) say the same.                   Lower income            23

Upper-income adults are roughly three times as likely as lower-     Note: White and black adults include those
                                                                    who report being only one race and are
income adults to say they have emergency funds that would           non-Hispanic. Hispanics are of any race.
                                                                    “Some college” includes those with an
cover their expenses for three months – 75% vs. 23%. Among          associate degree and those who attended
middle-income adults, 48% say they have such funds.                 college but did not obtain a degree. Family
                                                                    income tiers are based on adjusted 2018
                                                                    earnings.
Similarly, about two-thirds of adults with a bachelor’s degree or   Source: Survey of U.S. adults conducted
                                                                    April 7-12, 2020.
more education (66%) say they have rainy day funds that would       “About Half of Lower-Income Americans
                                                                    Report Household Job or Wage Loss Due to
carry them through for three months. The shares are                 COVID-19”
significantly lower for those with some college education (43%)     PEW RESEARCH CENTER
or a high school degree or less (33%).




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A majority of adults ages 65 and older (67%) say they have emergency funds set aside. By contrast,
fewer than half of those younger than 65 say the same. Even among those ages 50 to 64, the share
is only 44%.

Among adults who say they or someone in their household have lost a job or taken a pay cut due to
the coronavirus outbreak, most don’t have emergency funds to fall back on. Only 38% say they
have rainy day funds that would cover their expense for three months.

Most adults who don’t have emergency funds would have a hard time accessing funds to
cover basic expenses if they lost their income
Of the 53% of adults who say they don’t have rainy day funds set aside, most say they wouldn’t
have easy access to money that could help them meet their financial obligations if they lost their
main source of income. Only 28% say they would be able to cover their expenses for three months
by borrowing money, using savings, selling
assets, or borrowing from friends or family.     Upper-income adults without rainy day
About seven-in-ten (71%) say they would not      funds more likely to have access to
be able to do this.                              money in case of emergency
                                                  Among those who say they do not have rainy day funds, %
                                                  saying, if they lost their main source of income, they could
Among those without emergency funds, white
                                                  cover their expenses for three months by borrowing
adults, upper-income adults and those with a      money, using savings or selling assets
bachelor’s degree or more education are
                                                                                       No         Yes
among the most likely to say they’d be able to
cover their expenses by borrowing money,                 All adults     71                            28

relying on savings or liquidating assets. For
                                                     Upper income               41                           58
example, while 58% of upper-income adults
who don’t have rainy day funds say they could     Middle income            65                           34
cover their expenses for three months by
                                                     Lower income     83                           16
tapping into other resources, only 34% of
middle-income adults and 16% of lower-            Note: Family income tiers are based on adjusted 2018 earnings.
                                                  Source: Survey of U.S. adults conducted April 7-12, 2020.
income adults without emergency funds say         “About Half of Lower-Income Americans Report Household Job or
they could do the same.                           Wage Loss Due to COVID-19”
                                                  PEW RESEARCH CENTER




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Although older adults are more likely than middle-aged and younger adults to have rainy day
funds, among those who don’t, older adults are just as likely as their younger counterparts to say
they wouldn’t be able to cover their expenses by
borrowing money or using their own savings.
                                                           About a third of Americans say they
                                                           won’t be able to pay some of their bills
                                                           this month
                                                           % saying they …

                                                                            Cannot pay some of        Can pay all of
                                                            All adults               their bills      their bills in full
                                                            In a typical month           24                             75
Three-quarters of Americans say they can                            This month          32                             68
typically pay all of their bills in full, while 24%         Men
say that, in a typical month, they cannot pay               In a typical month            18                             81
                                                                    This month           24                             75
some bills or can only make partial payment on
                                                            Women
some of them. When asked about their ability to             In a typical month         30                            70
pay their bills this month, a larger share (32%)                    This month        38                            61
say they won’t be able to pay some bills than say           White
                                                            In a typical month            20                            80
this is the case in a typical month.
                                                                    This month           26                            74
                                                            Black
Women are more likely than men to say they                  In a typical month     46                            54
cannot pay some bills – either in a typical                         This month     48                            51
                                                            Hispanic
month or this month in particular. The share of             In a typical month           28                            70
women who say they will not be able to pay                          This month      44                            53
some bills this month is larger than the share              Upper income
                                                            In a typical month                  7                            93
who say this is the case in a typical month (38%
                                                                    This month                11                            88
vs. 30%).
                                                            Middle income
                                                            In a typical month            19                            81
There are also differences across racial and                        This month           26                            73
ethnic groups, with black adults particularly               Lower income
                                                            In a typical month  44                               56
likely to say they cannot pay some bills or can                     This month 53                               46
only make partial payment on some of them in               Note: Share of respondents who didn’t offer an answer not shown.
a typical month: 46% of black adults say this,             Shares who say they cannot pay some bills includes those who say
                                                           they can only make partial payment on some of them. Whites and
compared with 28% of Hispanic adults and an                blacks include those who report being only one race and are non-
even smaller share of white adults (20%).                  Hispanic. Hispanics are of any race. Family income tiers are based
                                                           on adjusted 2018 earnings.
                                                           Source: Survey of U.S. adults conducted April 7-12, 2020.
                                                           “About Half of Lower-Income Americans Report Household Job or
The share of Hispanic adults who say they will
                                                           Wage Loss Due to COVID-19”
not be able to pay some bills this month (44%)             PEW RESEARCH CENTER
is 16 percentage points higher than the share




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who say they cannot pay some bills in a typical month. The gap between those who say they won’t
be able to pay some bills this month and those who say they aren’t able to do so in a typical month
is less pronounced among white adults and not significant among black adults. Hispanics have
been particularly hard hit by job losses and pay cuts related to the coronavirus outbreak.

Not surprisingly, lower-income adults are more likely than those in the middle- and upper-income
tiers to say they can’t pay some bills or can only make a partial payment on some of them, both in a
typical month and this month in particular. About 44% of adults with lower incomes say this is the
case in a typical month, compared with 19% of those with middle incomes and just 7% of those
with upper incomes. When asked about their ability to pay their bills this month, about half of
those with lower incomes (53%) say they will
not be able to pay some bills, while 26% of
                                                     About half of Americans say coronavirus
middle-income and 11% of upper-income adults
                                                     has hurt their personal finances less
say the same.
                                                        than those of most other people
                                                        % saying the coronavirus outbreak has …

                                                                       Hurt their own personal
                                                                     financial situation ___ than       Impacted their
                                                                        those of most people            finances about
                                                                          More           Less              the same
                                                                All adults      10         52                  37

                                                                     Men        10          56                 34
When asked for their impression of how the
coronavirus outbreak has impacted their own                       Women         10         49                  40

personal financial situation compared with                          White      8              59               33
most other people, about half of U.S. adults
                                                                    Black    18          33                     48
(52%) say it has hurt their finances less than
those of other people, while 10% say it has hurt                 Hispanic       12        41                    47

their finances more and 37% say it has                     Upper income        6              65              28
impacted their finances the same as it has most
                                                          Middle income        6              59               34
other people.
                                                           Lower income      18          36                     46
Black and lower-income adults are particularly
                                                        Note: Share of respondents who didn’t offer an answer not shown.
likely to say their finances have been hurt more        Whites and blacks include those who report being only one race and
than those of most other people. About one-in-          are non-Hispanic. Hispanics are of any race. Family income tiers are
                                                        based on adjusted 2018 earnings.
five black adults (18%) say this, compared with         Source: Survey of U.S. adults conducted April 7-12, 2020.
                                                        “About Half of Lower-Income Americans Report Household Job or
8% of white and 12% of Hispanic adults.                 Wage Loss Due to COVID-19”
                                                        PEW RESEARCH CENTER




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Among lower-income adults, 18% say the outbreak has hurt their finances more than those of most
people; just 6% of middle- and upper-income adults say the same. A majority of adults in the
upper (65%) and middle (59%) income tiers say the outbreak has hurt their personal finances less
than those of other people.

People who say they or
someone in their household         Most lower-income adults who expect to receive a
have either been laid off or       payment from the government as part of coronavirus
taken a pay cut as a result of     aid say they will use it to pay bills
the coronavirus outbreak are       Among those who expect to receive a payment from the federal government
more likely than those who         as part of the coronavirus aid package, % saying they are most likely to use
                                   the majority of the money for …
haven’t had these experiences
to say the outbreak has hurt                        Paying bills or for
                                               something essential they                             Paying Something
their finances more than those                    or their family needs             Savings         off debt else
                                   All who expect a
of most other people (18% vs.             payment            54                        21              14         10
4%). Still, about four-in-ten of                Men           49                          25           15         11
those who say they or someone                Women               59                    18              14         10
in their household have had
                                               White          49                          26           13          12
these experiences say their
                                               Black              63                  9                 20         8
finances have been hurt less
                                            Hispanic              65                  12               16         7
(39%) or have been impacted
about the same (43%) as                 Bachelor's+          42                           29           16          13

others.                               Some college               56                    18              16         10
                                          HS or less              62                   18              12          9
                                      Upper income          34                             33          16          16
                                     Middle income            49                          23           16         11
                                      Lower income                 71                 11               11          6

                                   Note: Based on those who provided an answer and didn’t indicate that they won’t get a
                                   payment or aren’t eligible. “Something else” includes those who said they will use the
                                   majority of the money to pay for something nonessential they or their family need or who
                                   volunteer that they will use if for some other purpose. Whites and blacks include those who
                                   report being only one race and are non-Hispanic. Hispanics are of any race. “Some college”
                                   includes those with an associate degree and those who attended college but did not obtain a
                                   degree. Family income tiers are based on adjusted 2018 earnings.
                                   Source: Survey of U.S. adults conducted April 7-12, 2020.
                                   “About Half of Lower-Income Americans Report Household Job or Wage Loss Due to
As part of a wide-reaching         COVID-19”
economic relief package,           PEW RESEARCH CENTER
millions of Americans are
receiving one-time payments




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                                        PEW RESEARCH CENTER



from the federal government aimed at easing any financial burdens brought on by the coronavirus
outbreak. Some 54% of U.S. adults who expect to receive a payment from the federal government
say they are most likely to use the majority of the money to pay bills or for something essential
they or their family needs; 21% say they will save the money, while 14% say they’ll pay off debt. An
additional 10% say they’ll use the money for something else, including paying for something
nonessential, donating to charity, helping friends and family, or some combination.

Lower-income adults who expect to receive a payment are the most likely to say they will use a
majority of the money they receive to pay bills or for something essential: 71% say this, compared
with 49% of middle-income adults and 34% of those with upper incomes. Among those in the
upper income tier who expect to receive a payment, a third say they are likely to save a majority of
it; about a quarter of middle-income adults (23%) and just 11% of those with lower incomes say the
same.

There are also differences by race and ethnicity and by educational attainment. Larger shares of
black and Hispanic adults than white adults say they will likely use a majority of the aid money
they receive to pay bills or for something essential. Similarly, those without a bachelor’s degree are
more likely than college graduates to say they will use a majority of the money for this. These racial
differences are related, at least in part, to the fact that black and Hispanic adults are more likely
than white adults to be in the lower-income tier. Across educational attainment, those with some
college or less education remain more likely than those with at least a bachelor’s degree to say they
will use the majority of the money to pay bills, even after accounting for income differences
between these groups.

Overall, fewer than half of U.S. adults (46%) say the federal government’s aid package will do a
great deal or a fair amount to help them and their household. By comparison, about two-thirds or
more say this will help large businesses (77%), small businesses (71%), unemployed people (68%),
and state and local governments (67%) at least a fair amount, and 49% say this will help people
who are self-employed. Lower-income adults (59%) are more likely than those with middle (48%)
or upper (22%) incomes to say the aid package will help them and their household a great deal or a
fair amount.




More than three-in-ten Americans say they worry every day or almost every day about being able
to save enough money for their retirement (38%), paying their bills (38%), the amount of debt they




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                                              PEW RESEARCH CENTER



have (36%), and the cost of
health care for themselves and          About one-quarter of workers frequently worry about
their family (35%). Smaller but         losing their job
substantial shares say they are         % saying they worry about each of the following …

worried they may have to take                                                                 Almost
a pay cut due to reduced hours                                          Every day            every day       Net
                                              Being
                                            Being   able
                                                  able  toto save
                                                           save
or demand for their work or                enough for
                                           enough for retirement
                                                      retirement
                                                                           21                  17            38
that they will lose their job
(29% and 23% of employed                        Paying their bills         21                 16             38
adults, respectively).
                                         The The amount
                                            amount      of they
                                                   of debt debt
                                                                          19                 17               36
                                                 have they have
These worries may not
necessarily be connected to       The
                                    Thecost of of
                                         cost  health
                                                  healthcare for
                                                          care
                                       them and
                                              and their
                                                   their family
                                                         family             18                  16               35
                                   for them
the coronavirus outbreak. U.S.
                                     Taking a cut
                                                payin  pay
                                                     cut   due
                                                         due  to
adults actually show less              to reduced
                                  reduced   hours or hours or
                                                       demand             15                14                   29
concern now about the                demandfor  fortheir
                                                    their work
                                                         work*
amount of debt they have,                   Losing their job*            14              9                       23
their health care costs, paying
their bills and being able to     *Shares for taking a pay cut and losing their job are among employed adults.
                                  Note: Figures may not add to subtotals due to rounding.
save enough for retirement        Source: Survey of U.S. adults conducted April 7-12, 2020.
                                  “About Half of Lower-Income Americans Report Household Job or Wage Loss Due to
than they did when asked          COVID-19”
some of the same questions in     PEW RESEARCH CENTER
a September 2019 survey, well
before the start of the
pandemic. Similar shares of Americans who were employed at the time of each of the surveys said
they regularly worried about losing their job. (The item on taking a pay cut was not asked in
September.)

About half or more of lower-income adults often worry about meeting basic financial needs
Financial concerns are not felt equally by all Americans. Those in lower-income families are at
least about twice as likely as those in upper-income families to say they regularly worry about
making ends meet in various ways. For example, 59% of lower-income adults say they worry at
least almost every day about paying their bills, compared with 15% of upper-income adults. About
half of those in the lower-income tier also say they frequently worry about saving for retirement,
debt or health care costs, while about a quarter or less of their upper-income counterparts say the
same.




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Across income groups, those who have been
                                                           Financial concerns mainly impact lower-
laid off or have taken a pay cut as a result of the        income adults
coronavirus outbreak – or who say someone in
                                                           % in each income tier saying they worry about each of
their household has – are more likely than                 the following every day or almost every day
those who have not experienced this to say they
                                                                          Upper            Middle              Lower
worry about these financial concerns almost
every day or more often. Roughly half (51%) of             Being able to save enough                      26
                                                                                enough
                                                                                                                37
those who’ve had this type of job disruption in                  for retirement
                                                                         for retirement                                50
their household say they worry about paying                                                         15
                                                                      Paying their bills                       35
their bills at least almost every day, compared                                                                             59
with 28% of those whose household hasn’t had                 The The
                                                                amount
                                                                     amount
                                                                       of debt
                                                                            of they
                                                                               debt                  21
                                                                                                               35
these experiences.                                                   have they have
                                                                                                                       51
                                                           The cost of health
                                                                       health care for               18
Women, black and Hispanic adults, those                         them and  their family                         35
                                                             them  and  their family
                                                                                                                      47
younger than 65, and those without bachelor’s               Taking a cut  in pay
                                                               Taking  a pay  cut due
                                                                                  due to
                                                                                      to             18
degrees are the most likely to report regularly             reduced  hours   or demand
                                                            reduced hours or demand                       25
                                                                  for their work work*
                                                                        for their                                      51
worrying about most of these financial issues.
                                                                                                11
                                                                     Losing their job*               21
                                                                                                                 40
                                                           *Shares for taking a pay cut and losing their job are among
                                                           employed adults.
                                                           Note: Family income tiers are based on adjusted 2018 earnings.
                                                           Source: Survey of U.S. adults conducted April 7-12, 2020.
                                                           “About Half of Lower-Income Americans Report Household Job or
                                                           Wage Loss Due to COVID-19”
                                                           PEW RESEARCH CENTER




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                                        PEW RESEARCH CENTER



Acknowledgments
This report is a collaborative effort based on the input and analysis of the following individuals.
Find related reports online at pewresearch.org/socialtrends

Kim Parker, Director, Social Trends Research
Juliana Horowitz, Associate Director, Research
Anna Brown, Research Associate
Deja Thomas, Research Assistant
Jesse Bennett, Research Assistant
Ruth Igielnik, Senior Researcher
Jocelyn Kiley, Associate Director, Research
Alec Tyson, Senior Researcher
Hannah Hartig, Research Associate
Ted Van Green, Research Assistant
Tanya Arditi, Communications Manager
Michael Keegan, Senior Information Graphics Designer
Travis Mitchell, Copy Editor and Digital Producer

In addition, the project benefited greatly from the guidance of the Pew Research Center
methodology team: Courtney Kennedy, Andrew Mercer, Nick Bertoni, Joshua Ferno, Dorene
Asare-Marfo, Nick Hatley and Arnold Lau.




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                                                  PEW RESEARCH CENTER



Methodology

The American Trends Panel (ATP), created by Pew Research Center, is a nationally representative
panel of randomly selected U.S. adults. Panelists participate via self-administered web surveys.
Panelists who do not have internet access at home are provided with a tablet and wireless internet
connection. The panel is being managed by Ipsos.

Data in this report is drawn from the panel wave conducted April 7 to April 12, 2020. A total of
4,917 panelists responded out of 6,092 who were sampled, for a response rate of 81%. This does
not include one panelist who
was removed from the data          American Trends Panel recruitment surveys
due to extremely high rates of                                                                                       Active
                                                                                                                    panelists
refusal or straightlining. The         Recruitment dates              Mode            Invited        Joined        remaining
cumulative response rate                                           Landline/
                                   Jan. 23 to March 16, 2014 cell RDD                  9,809          5,338           2,310
accounting for nonresponse to                                      Landline/
                                   Aug. 27 to Oct. 4, 2015          cell RDD           6,004          2,976           1,335
the recruitment surveys and
                                                                   Landline/
attrition is 4.4%. The break-off April 25 to June 4, 2017           cell RDD           3,905          1,628            685
rate among panelists who           Aug. 8 to Oct. 31, 2018         ABS/web             9,396          8,778           6,411
logged on to the survey and        Aug. 19 to Nov. 30, 2019        ABS/web             5,900          4,720           4,686
                                                                      Total           35,014         23,440          15,427
completed at least one item is
1.7%. The margin of sampling       Note: Approximately once per year, panelists who have not participated in multiple
                                   consecutive waves or who did not complete an annual profiling survey are removed from the
error for the full sample of       panel. Panelists also become inactive if they ask to be removed from the panel.
4,917 respondents is plus or       PEW RESEARCH CENTER

minus 2.1 percentage points.

This study featured a stratified random sample from the ATP. The sampling strata were defined by
the following variables: age, ethnicity, education, country of birth (among Hispanics), internet
status, party affiliation, voter registration and volunteerism.

The ATP was created in 2014, with the first cohort of panelists invited to join the panel at the end
of a large, national, landline and cellphone random-digit-dial survey that was conducted in both
English and Spanish. Two additional recruitments were conducted using the same method in 2015
and 2017, respectively. Across these three surveys, a total of 19,718 adults were invited to join the
ATP, of which 9,942 agreed to participate.




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                                                    PEW RESEARCH CENTER



In August 2018, the ATP switched from telephone to address-based recruitment. Invitations were
sent to a random, address-based sample (ABS) of households selected from the U.S. Postal
Service’s Delivery Sequence File. In each household, the adult with the next birthday was asked to
go online to complete a survey, at the end of which they were invited to join the panel. For a
random half-sample of invitations, households without internet access were instructed to return a
postcard. These households were contacted by telephone and sent a tablet if they agreed to
participate. A total of 9,396 were invited to join the panel, and 8,778 agreed to join the panel and
completed an initial profile survey. The same recruitment procedure was carried out on August 19,
2019, from which a total of 5,900 were invited to join the panel and 4,720 agreed to join the panel
and completed an initial profile survey. Of the 23,440 individuals who have ever joined the ATP,
15,427 remained active panelists and continued to receive survey
invitations at the time this survey was conducted.                           Weighting dimensions
                                                                                              Variable                 Benchmark
                                                                                                                         source
The U.S. Postal Service’s Delivery Sequence File has been estimated to                        Gender                2018 American
                                                                                                                    Community
cover as much as 98% of the population, although some studies suggest                         Age                   Survey
that the coverage could be in the low 90% range.4 The American Trends                         Education

Panel never uses breakout routers or chains that direct respondents to                        Race/Hispanic
                                                                                              origin
additional surveys.                                                                           Country of birth
                                                                                              among Hispanics
                                                                                              Years lived in the
Weighting                                                                                     United States
                                                                                              among Hispanics
The ATP data was weighted in a multistep process that begins with a                           Home internet
                                                                                              access
base weight incorporating the respondents’ original selection
                                                                                              Region x            2019 CPS March
probability. The next step in the weighting uses an iterative technique                       Metropolitan status Supplement
that aligns the sample to population benchmarks on the dimensions                             Volunteerism        2017 CPS
                                                                                                                  Volunteering &
listed in the accompanying table.                                                                                 Civic Life
                                                                                                                  Supplement
                                                                                              Voter registration 2018 CPS Voting
Sampling errors and test of statistical significance take into account the                                        and Registration
                                                                                                                  Supplement
effect of weighting. Interviews are conducted in both English and
                                                                                              Party affiliation   Average of the
Spanish.                                                                                                          three most recent
                                                                                                                  Pew Research
                                                                                                                  Center telephone
                                                                                                                  surveys.
In addition to sampling error, one should bear in mind that question
wording and practical difficulties in conducting surveys can introduce                        Note: Estimates from the ACS are based on
                                                                                              non-institutionalized adults. Voter
error or bias into the findings of opinion polls.                                             registration is calculated using procedures
                                                                                              from Hur, Achen (2013) and rescaled to
                                                                                              include the total US adult population.
                                                                                              PEW RESEARCH CENTER



4 AAPOR Task Force on Address-based Sampling. 2016. “AAPOR Report: Address-based Sampling.”




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                                       PEW RESEARCH CENTER



The following table shows the unweighted sample sizes and the error attributable to sampling that
would be expected at the 95% level of confidence for different groups in the survey:


                                       Unweighted
             Group                     sample size          Plus or minus …
             Total sample                 4,917          2.1 percentage points


             Upper income                  909           4.6 percentage points
             Middle income                2,186          3.1 percentage points
             Lower income                 1,607          3.6 percentage points


Sample sizes and sampling errors for other subgroups are available upon request.




To create upper-, middle- and lower-income tiers, respondents’ 2018 family incomes were
adjusted for differences in purchasing power by geographic region and for household size.
“Middle-income” adults live in families with annual incomes that are two-thirds to double the
median family income in the panel (after incomes have been adjusted for the local cost of living
and for household size). The middle-income range for the American Trends Panel is about
$37,500 to $112,600 annually for a three-person household. Lower-income families have incomes
less than roughly $37,500, and upper-income families have incomes greater than roughly
$112,600.

Based on these adjustments, among respondents who provided their income and household size,
32% are lower income, 45% are middle income and 23% fall into the upper-income tier.

For more information about how the income tiers were determined, please see here.

© Pew Research Center, 2020




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