Diving letter:
- According to a WalletHub analysis of the country’s 100 largest cities, Las Vegas is the largest US city where people are suffering from “financial hardship” during the coronavirus pandemic (COVID-19).
- The rankings were determined using a weighted average across six categories, including Credit scores, average number of accounts in distress, and changes in the number of bankruptcy filings in June 2020 from June 2019. The 10 cities with the most people in financial need include: Las Vegas; Chicago; Houston; San Antonio; Dallas; Phoenix; Los Angeles; Austin, TX; Miami and Fort Worth, TX.
- The cities with the lowest financial hardship are Anchorage, AK; Madison, WI; Jersey City, NJ; Fremont, CA; and Newark, NJ.
Dive Insight:
The national unemployment According to the US Bureau of Labor Statistics (BLS), the rate was 7.9% in September compared to September 3.6% unemployment rate in January. However, the actual unemployment rate is likely closer to 26%Axios reports.
Hawaii has the highest unemployment rate of any state at 15.1%, followed by Nevada at 12.6%. according to Forbes partly due to the pandemic high burden on the tourism industry.
Las Vegas; Henderson, NV; Reno, NV; and North Las Vegas, NV, were among the five cities where the average number of accounts in distress changed the most in September from January, according to the WalletHub study.
Casinos and resorts are slowly starts to open again, however. And employment in the leisure and hospitality industries grew by 318,000 people In September, 69,000 jobs were created in entertainment, gambling and leisure, according to the BLS.
Orlando, FL, another tourist hub that WalletHub ranked in the top 15 cities for financial reasons, has also made it easier with the reopening of the Walt Disney World Resort. The parks 70,000 workers on leave at the start of the pandemic, which contributed to the staggering 40% unemployment rate in the leisure and hospitality sectors in April.
To ease financial burdens, cities from Philadelphia to The angel have used some of their state coronavirus aid funds to help residents pay rent or utilities. Nonprofits like Accelerator for America have also joined raise over $ 10 million Relief in the form of prepaid debit cards for residents, especially for people without bank details and without papers.
“Direct payments to individuals must be a priority,” said Julie Heath, director of the University of Cincinnati Business Center, in a statement. “When the additional $ 600 a week became available for displaced people, millions of jobs were supported (not eliminated) because those people and households still had money to run the economy.”
Low-income people and women are hardest hit by the pandemic-triggered recession, according to Heath. A recent survey by the US Green Building Council (USGBC) found that 89% of women reported feeling significant financially. occupational and family effects of the pandemic.
The financial effects of the pandemic were also felt disproportionately in the color communities. 31% of black residents could not pay rent in July.
To address some of these financial pressures, Rep. Maxine Waters, D-CA recently launched the Emergency Shelter Protection and Aid Act The bill would provide $ 100 billion in rental assistance and create a $ 75 billion homeowner fund to help prevent evictions, foreclosures and unsafe housing. In June the bill was passed by 232 votes to 180 in the House of Representatives and submitted to the Senate, where it is unlikely to be passed.
ON second federal economic agreement could provide relief for residents too, but a deal is unlikely to come about until after the election, reports the Washington Post.
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