Why are layoffs and furloughs hitting some groups more than others?

An unprecedented number of people around the world have been left jobless due to the economic downturn caused by the ongoing coronavirus pandemic. More than 30 million people have filed for unemployment benefits in the United States alone. Yet, some groups are being hit harder by job cuts and furloughs than others.

Unemployment is increasing more for women and people of color than other groups, according to an article in Harvard Business Review by Tel Aviv University Associate Professor Alexandra Kalev. 

The March unemployment figures in the U.S. shows that to be true. The overall unemployment rate increased by nearly 26%. For white Americans, the increase was about 29%. The increase was 64% for Asian Americans and more than 36% for Hispanic and Latino Americans. While the increase for black Americans and African Americans was less than 16%, they began the month with an unemployment rate more than 2 percentage points higher than any other group.

Additionally, the numbers showed that the unemployment rate increased by about 21% for men, but about 29% for women.

These trends are not unique to our current time, however. As Kalev points out, we saw some of this during the Great Recession.

I discussed the topic Wednesday on #GetHired Live with Cynthia Pong, who is the founder of Embrace Change and a 2019 LinkedIn Top Voice. Pong works as a career coach focusing on helping women of color.

“For that to happen to your community again in such a short period of time, there’s just so much to unpack there,” said Pong.

As for why these groups are being hit harder than others, Pong said it has a lot to do with the specific industries that are experiencing layoffs.

Many women of color work in sectors that have experienced a steep decline in business, for example. Those areas include the service industry, retail, restaurants and hospitality, domestic work and home health aides. “The vast majority of people doing those jobs are women of color,” said Pong. “They’re losing jobs at a much higher rate than others.”

Additionally, women and people of color have traditionally been more likely to be targeted by layoffs and job cuts compared with other groups.

“When [people] are making their layoff lists, there’s not much thought given to equity in that,” said Pong. “While the intention isn’t necessarily to lay off all the women of color, for example, that is sometimes what ends up happening.”

Companies may end up cutting the most recently hired employees or a certain level of employees within a company. If those selections are positions mostly held by women of color, they end up disproportionately impacted, she said.

Pong suggested people in vulnerable positions within a company do three things. They should get ready by keeping a running list of their accomplishments and achievements. She recommended that people create backup plans in case they abruptly lose their job. Additionally, a person should keep their network “simmering,” which means that they stay in touch with people but don't make any big asks.

You can see my full conversation with Embrace Change’s Cynthia Pong below. What do you think about these disparities? Join the conversation.

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I also broadcast on #LinkedInLive every Friday at 1 p.m. ET to discuss job search strategies during this hectic and uncertain time. Follow my profile by clicking here if you’d like to get a notification when we go live Friday with Ashley Watkins, who is the founder of Write Step Resumes, LLC and a 2019 LinkedIn Top Voice.

? The follow-up:

Many job seekers are being confronted by unexpected questions during this difficult time. One question that keeps popping up in my inboxes is whether a person should wait for a job that matches their experience and talents, or if they should accept any job they can get. Talent experts and job seekers from around the world chimed in with their thoughts in the last edition of #GetHired. The universal theme was that it depends on a person’s specific situation. While you’ll always do your best work and be happiest with a job that’s right for you, some people said you may be forced to take a job to help pay the bills. Here’s what people are saying about the advice.

? Other news to help you #GetHired:

Another 3.84 million Americans filed new unemployment claims during the week of April 19, according to the Department of Labor. When added to the more than 26 million claims already filed since mid-March, the total jobless applications tied to the pandemic exceeds 30 million. States continue to struggle to address the tens of millions of claims, which have exceeded anything seen before. Adding to the backlog is the complexity of adding unemployment benefits from the federal government to those already provided by the states. Here’s what people are saying about the latest numbers.

Here’s who’s hiring right now. As I’ve said before, we’re doing our best to connect you with companies that are still hiring during these troubled economic times. Part of that effort is a regularly updated list of companies we know to be hiring. Some of those include Amazon, Walmart and CVS Health. Click here to see more.

? The #GetHired Job Search Guide

I will do my best to keep you up to date with the latest tools and tips to help you #GetHired. To keep track of those various pieces of information, I created a one-stop-shop where I’m summarizing and linking to a lot of my newsletters. You’ll also find accompanying LinkedIn Learning courses below most of the topics. Click here to check out the guide.

? Up next:

Job interviews have changed so much due to the ongoing coronavirus pandemic. Instead of meeting hiring managers and other people at their office, you likely need to interview over video. Similarly, the questions you get asked might be different than usual. In the next edition of #GetHired, we’ll talk about some of those unique questions that you may encounter. If you have been interviewed over the past few weeks, let me know if any questions about the pandemic caught you off guard.

? Click here to see the latest updates on the coronavirus

Thanks for reading! Feel free to reach out to me if you have ideas on topics or questions I should address in future editions of #GetHired. You can also email me at GetHired[at]LinkedIn.com.