02/21/2024

Wealth Disparities by Race Grew During the COVID-19 Pandemic, Report Shows

This occurred despite income gains

A strong performance in financial markets, particularly an outsize gain for the stock market in 2021, helped entrench existing trends of wealth inequality during the pandemic, new data released this week show.

According to a report from the New York Federal Reserve Bank, the real net worth of white individuals outgrew that of Black and Hispanic individuals by 30 percentage points and 9 percentage points respectively, from the first quarter of 2019 through the second quarter of 2023.

The period featured a remarkable level of government financial support and, after the initial shock of the pandemic, a surprisingly strong job market. The unemployment rate for Black Americans in particular is now at 5.3 percent, near a record low, compared to an overall unemployment rate of 3.7 percent. Earnings for the typical Black full-time worker are up 7.1 percent since before the pandemic.

Please select this link to read the complete article from The Associated Press.