How did the COVID Economic Downturn affect Health?
COVID-19 Economic Recession & Okanogan Community Health: February, 2021 CHI meeting summary
The connection between the economic health & wellbeing:
Health is influenced by many factors, not just disease. Overall health is affected by emotional, intellectual, social, physical, environmental, spiritual, and financial factors.
Okanogan County’s health indicators are poor in mental health, chronic disease, food security, obesity, and access to exercise. Okanogan’s socio-economic indicators are also poor relative to the state, we have a high adult & child poverty rate and limited availability of living-wage jobs. Ultimately, health and wellbeing is influenced most strongly by socio-economic factors; when economic downturns deteriorate socio-economic status, health and well-being suffers.
The impact of the economic downturn on community health:
High COVID-19 exposure & illness among farmworkers: COVID-19 hit farmworkers (one of our most vulnerable populations) in the summer of 2019 at the peak of cherry season, when many people are earning 80 - 90% of their annual wage, seasonal population grows, many multi-household childcare collaborations are needed so people can work, and many people cannot afford to take time off. Not a good environment for pandemic management, we didn’t have the protections in place to protect an essential workforce.
Rising stress and anxiety among mothers: Many mothers have taken the burden of all child rearing responsibilities during school closures (including home schooling), while continuing to work their paid job. Mothers are dealing with rising stress, depression, anxiety.
Absence of childcare prevents people from working: High turnover at businesses, many can’t work because they don’t have childcare or don’t have childcare that will be able to provide their kids sufficient education.
Lack of internet or phones severely limits access to resources: Those without phones or internet access can’t get the services they need. Lack of broadband is a growing issue that now affects school learning, remote businesses, telemedicine, precision agriculture, and other new technologies.
Kids with disabilities struggle to get sufficient support: Families who have children with disability are not able to get many of the resources they need, e.g. speech or physical therapy. Some are not getting the healthcare they need out of fear of COVID exposure.
High stress among front-line healthcare workers: Hard on staff, hard on clients. Social workers hear tough stories every day; the economic struggle is hard for clients, but it’s also hard on staff. Most state services immediately entered a hiring freeze, preventing reinforcements from coming in.
High financial and emotional stress among small businesses: Recession has affected small businesses tremendously. Many who were otherwise prepared for a “rainy day” could not make it through a full year of being closed. Some are laying people off, closing permanently, or choosing to not re-open. Businesses were not given forbearance or deferment on their loans (unlike individuals), they were required to pay high overhead expenses, including rent. Government funding was able to help some of these people, but many were worried they would lose their homes if their business failed. Family owned and operated businesses were uniquely affected because every single household member lost income. Stress levels were high among business owners: changes to opening, closing, and funding put them on an emotional rollercoaster.
What we learned: socio-economic stabilizers in an economic downturn
Protect our workforce and invest in our most vulnerable populations: If workforce can endure, we are better positioned to support the economy
Increase community health infrastructure: In the pandemic, this involved direct outreach workers, increased contact tracing, and support with isolation and quarantine but community health systems should be mobilized in recessions in multiple ways.
Create affordable, accessible childcare options: Childcare is critical to essential workers, demand for childcare, particularly among 0 - 3 is very high when people need to work to make ends meet. A safe place for kids to go when household stress is high is critical.
Increase food support and cash assistance: People needed more than “usual” benefits, and many people who previously qualified accessed this support for the first time.
Make access to benefits as quick and efficient as possible: Community health entities made all forms completable electronically and enabled people to get food benefit cards the same day. Not having to go in-person has been helpful for those who live far away.
Deliver direct financial assistance to small businesses: Partner with state, county, and municipalities to administer grants directly to small businesses, including help with overhead expenses.
Provide 1:1 assistance to businesses most affected: Educate businesses on newly-available resources and re-look at business models, such as shifts to online retail and use of social media
Distribute more, high quality food: Good nutrition is critical for families to learn and people to stay healthy.
Prevent evictions; help with heating, utilities, and other essential costs: No one should lose the ability to be safe in their homes during a financial crisis.
How can we be more resilient to future economic downturns?
Increasingly flexible businesses: Adjust business models in recession times (e,g, brick and mortar vs. remote) and look for cost reduction opportunities.
Ensure childcare is available and affordable: Early childhood education lays the groundwork for healthy adults and enables workers to be flexible during downturns, it should be reliable and well funded.
Utilize the post-downturn period to step into new ideas that fit a changing market: Support innovators post-pandemic as they develop new ideas and approaches to business
Help household’s understand their monthly expenses and budget: Train people to spend money thoughtfully and reserve funds for critical expenses or crises.
Develop and invest in a stronger safety net (housing, schools, apple health, etc.) and address generational poverty: Preserve health insurance coverage, nutrition programs, housing subsidies etc. to improve health in ways that bouey the economy
Reduce poverty in general: Develop the Okanogan economy in ways that reduce unemployment and poverty.
Poverty and the economy:
“What are we missing out on because of the poverty that our county faces? What’s the opportunity cost? If we can lift people out of the impoverished conditions they live in, what would their contribution to the Okanogan economy be?”
“Why should we work to eliminate poverty? Because poverty costs money. Just in January, Okanogan County issued 1.9 million in food benefits. This money goes into the economy (which is good), but what would we do to attract a business that would bring in a $2 million payroll? We need to find a solution to the high unemployment and high poverty rate we have in this county.”
How has Okanogan’s economy changed?
Long-term Labor Market Trends in the Okanogan County Economy:
Average annual Okanogan County unemployment rate in 2020 (9.4 percent) was still less than the rate in 2010 (10.7 percent) - during the “peak” of the recent Great Recession.
However, the average annual nonfarm job loss-rate of minus-5.6 percent countywide in 2020 was worse than the minus-3.9 percent loss-rate in 2009.
Agriculture lost jobs at an annualized loss rate of minus-2.5 percent (down 1,260 jobs) from 2009-2019. Conversely, transportation and warehousing added jobs at an annualized growth rate of 15.5 percent (up 306 jobs).
Recent Labor Market Trends (2019 - 2020) in the Okanogan County Economy
Unemployment rate rose from 6.8 percent in 2019 to 9.4 percent in 2020. COVID related layoffs drove rates up from April through November 2020.
The Okanogan County nonfarm market lost 710 jobs in 2020 (down 5.6 percent). Washington state lost 160,900 jobs in 2020 (down 4.6 percent)
Sectors losing jobs in 2020: over eighty percent of jobs lost were in leisure and hospitality (down 250 jobs) or state and local government (down 330).
Sectors gaining jobs in 2020: federal government (up 40 jobs) and manufacturing (up 20 jobs).
Unemployment rate rose from 6.8 percent in 2019 to 9.4 percent in 2020. COVID related layoffs drove rates up from April through November 2020.
The Okanogan County nonfarm market lost 710 jobs in 2020 (down 5.6 percent). Washington state lost 160,900 jobs in 2020 (down 4.6 percent).
Sectors losing jobs in 2020: over eighty percent of jobs lost were in leisure and hospitality (down 250 jobs) or state and local government (down 330).
Sectors gaining jobs in 2020: federal government (up 40 jobs) and manufacturing (up 20 jobs).
