Health and Economic Consequences of COVID-19 on Minority Populations

The past few months of 2020 have delivered unprecedented moments. Ever since the outbreak of COVID-19 in the later months of 2019, the lives of individuals across the globe have been dramatically altered. The current pandemic is the largest health scare since the Spanish Flu of 1918; the enormity of which no living individual can attest to. However, the virus has also forced the government to proceed with a unique hand. Many governments enacted large-scale shutdowns that prohibited in-person operations of non-essential businesses. Stringent social-distancing regulations have been implemented and subsequently, consumerism has dried up. These actions were necessary, yet they have produced devastating economic turmoil that is bound to leave a lingering effect in the months and years to come. 

The United States, in particular, has experienced much of this devastation. In mid-March, America surpassed China to become the country with the highest number of COVID-19 cases. This trend has not ceased. Currently, the U.S. leads the world with approximately 6.3 million cases and a death toll of 190,000; 60,000 more than the next highest country, Brazil, and over 100,000 more deaths than India which ranks third. 

The U.S. unemployment rate peaked at 14.7% and Q2 GDP fell by over 32%, which is larger than any drop in history including the Great Depression years. In 2020, America’s economic prospects are truly reeling. But in all this misery, one pattern has emerged that should be especially disturbing for Americans. Minority populations, specifically African Americans and Hispanics, are disproportionately affected by the pernicious events caused by the novel coronavirus.

News outlets across the country have frequently reported similar findings. An NPR analysis has demonstrated that in over forty states, Hispanics and Latinx are testing positive for COVID-19 at far higher rates than their share of the states’ respective populations. A similar story exists for fatality rates. Take a glance at the following graph

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As you may notice, in over thirty states African Americans have a higher COVID-19 death rate than is proportional to their population share. Recent studies indicate that Black Americans are dying at rates that are double those of their White counterparts. There are two main takeaways from these statistics: minorities are more likely to contract the virus and more likely to die once the virus is contracted. 

The virus is not inherently discriminatory; so why are minorities more likely to get COVID-19? Coronavirus is an infectious disease and so an implication is that high-density areas are more vulnerable to an outbreak and minority populations tend to have larger representations in urban areas. New York City is a prime example. Look at this map of New York state from a few months ago during the virus’s peak. The darker colors are indicative of higher severity in the outbreak.

The southern part of New York, the New York City metropolitan area and surrounding counties, bears the brunt of the virus. And the population breakdown of NYC in terms of demographics is the following: 32.1% Non-Hispanic White, 24.3% Black or African American, 29% Hispanic or Latinx, and 14.6% Other Races. Compare this to the overall New York population: 55.3% Non-Hispanic White, 17.6% Black or African American, 19.3% Hispanic or Latinx, and 7.8% Other Races. It is easy to notice why minority groups, who comprise a large portion of urban populations, are more likely to come down with a contagious virus.

A secondary factor that contributes to increased COVID-19 case rates for minorities is the simple fact that they are overrepresented in many frontline industries such as grocery stores, public transit, cleaning services, and warehouse/trucking services. The overrepresentation is particularly true for African Americans. Black Americans make up about 12% of workers in all industries, but this number surges to 17% when solely considering frontline jobs. On the other hand, White Americans see a dip: 63% in all occupations to 58% in frontline industries. On average, an African American is more likely to be an essential worker, exposed to a greater number of individuals, and thus, they are more likely to contract COVID-19.

The second takeaway, a higher fatality rate for minorities, is a result of systemic inequities. There is a disproportionate amount of African Americans and Hispanics who live in low-income areas without access to proper healthcare or housing. In many of these communities, squalid housing conditions and a lack of health insurance increases the likelihood that these minority groups are living with preexisting health conditions such as obesity, AIDs, diabetes, hypertension, heart disease, and others while lacking medical treatment. The Center for Disease Control (CDC) has drawn a correlation between these health issues and COVID-19 hospitalizations. A recent finding is that “90 percent of adults hospitalized from COVID-19 have an underlying medical condition”. This statistic is cause for concern within minority populations that are plagued with higher rates of chronic health issues.

So what does all this mean for the economic security of minorities during the pandemic? Picture this scenario. Tasha is a minority worker employed by a small restaurant in the city. She goes home to a household consisting of her mother, husband, and two children. They live in an undersized dwelling and are just able to keep up with monthly bills. Since Tasha is the sole breadwinner in her family, her job is invaluable. But then the pandemic hits. The operations of all non-essential businesses, including Tasha’s restaurant, are placed on a halt. If Tasha is lucky she’ll get paid leave until business is back to usual. However, that is an overly optimistic outcome. More than likely Tasha will join the millions of Americans that have filed for unemployment in the last few months. Every situation may not be as dire as Tasha’s case, but many small business workers are surely facing large economic setbacks. 

Two important observations should be gleaned from the scenario: Tasha is a minority and she works for a business that relies on in-person interactions. These two observations are not unrelated. Small businesses such as restaurants principally belong to the Leisure and Hospitality sector. In January, Leisure and Hospitality Services made up around 9.8% of the Non-Farm Labor Composition in New York. That percentage dropped to 5.5% in June. No other industry in New York experienced a change greater than two percentage points. Estimates highlight that Latinx Americans occupy approximately one-fourth of the Leisure and Hospitality Services workforce. Given the decrease in Leisure and Hospitality jobs and the overrepresentation of Hispanics in that sector, the syllogism ends like this: “a disproportionate number of Latinx are unemployed during this pandemic”. For those lucky enough to retain their jobs, a common dilemma arises — a dilemma that Hispanics and African Americans, unfortunately, know too well. Do they show up to work and risk exposing their families to a malignant virus or abstain and pray that their meager savings will cover costs until the health scare blows over? Consider a fact already mentioned: many minorities live with pre-existing health conditions that amplify the risks of COVID-19. But even after acknowledging these dangers, most African Americans and Latinx have to reluctantly opt into going back to work just to maintain their livelihood. 

This is unfortunately a reality for America. And perhaps the worst part is that there is no band-aid solution to fixing the issues which have added to the plight of certain minorities during this pandemic. Systemic inequities are the main factors that have caused conspicuous disparities in COVID-19 rates between different ethnic communities. Most of this inequality predates the emergence of the novel coronavirus. Until these problems are resolved, Latinx and African American populations will continue to feel the heavier burden of this pandemic, long after it ceases to exist.