Uncertainty regarding the current and future employment status of many Victorians has been a major economic factor of the COVID-19 pandemic. Retail workers, delivery drivers, and food industry employees are three of the most underpaid groups of workers, and are the most vulnerable to layoffs. Even before the pandemic, nearly a fifth of the Victorian labour force was experiencing under-employment or unemployment and this has only increased since March. Unemployment currently stands at 7.5 per cent and is likely to increase to 9.25 per cent in December. With rising unemployment, uncertainty about the reopening of dormant industries, and impending reductions in JobKeeper and JobSeeker benefits, job uncertainty is amplified. For many, government assistance is the only safety net between them and poverty.
Media analysis of these economic impacts tends to focus on the middle class since those earning low incomes before the pandemic have not seen a significant income change after receiving JobKeeper or JobSeeker payments. However, low-income earners are among the most significantly impacted people in terms of access to essential resources; low-income earners, pensioners, and those in insecure employment were exposed to financial, food, and housing insecurity before the pandemic – conditions which have since worsened. Many people, such as those seeking asylum, are ineligible for support payments and their affected income places them at risk of homelessness. Ali, a 34 year old taxi driver, was unable to afford paying his informal rental agreement after losing work and faced eviction. Without assistance from the Asylum Seeker Resource Centre (ASRC) and their Foodbank, he and his family would have been made homeless by the financial effects of COVID-19. The ASRC Foodbank has been delivering meals and food vouchers to hundreds of families who otherwise would have gone hungry.
While COVID does not discriminate by class, low-income earners have a higher risk of exposure. Although the pandemic has affected everyone, low-income earners are more vulnerable since they comprise the majority of essential workforces. This is likely because of lower rates of access to education, and racial marginalisation, and increased risk due to the higher rates of underlying medical conditions in low-income and marginalised communities.
In face, 47 per cent of vulnerable workers living in very high vulnerability suburbs are on low or very low incomes, mostly employed in the customer service industry. 54 per cent of these workers are only employed part-time. The repercussions of the closure of these industries will impact low-income workers long after the imminent threat of COVID has been reduced: studies have already shown a large change in consumer habits. Australian families who are struggling to make ends meet have significantly reduced disposable income to spend in these embattled industries. The economic risk for low-income earners is higher than middle- and high-income earners and this subsequently impacts their overall access to healthcare.
It is important to acknowledge how economic privilege correlates to health privilege, through easier access to medicine and essential supplies, and the ability to self-isolate. Low income earners, casual employees, and many people belonging to minorities are disproportionately affected as they do not have the financial or practical means to take appropriate risk-reducing measures. Overcrowding, particularly among Indigenous communities, informal housing, and homelessness make social distancing and self-isolation difficult or near impossible for low-income earners and members of marginalised communities. Most essential workers are low-income earners who do not have the privilege to remain at home. For those who have the luxury of working from home; have been able to afford to take time off work; do not need to take public transport or make frequent supermarket trips; and have the privilege of avoiding direct contact with members of the community, their overall risk of being exposed to the virus is decreased.
Health and financial inequality pre-dated the COVID outbreak and is only heightened by the stress of a global pandemic. During the recovery phase, the systematic inequality that low-income earners face as well as the ramifications of the pandemic need to be addressed. This can be achieved by creating jobs and safer work environments, better sick leave and improved conditions for casual workers, health promotion and education, and creating health equity by promoting the health of marginalised communities. One Melbourne abattoir employee underwent self-isolation due to testing positive for COVID-19 only to have his sick-leave deducted from his annual leave, despite having accrued over 100 hours. Secretary of the Australian Council of Trade Unions, Sally McManus, has been lobbying union support for paid sick leave and paid pandemic leave for all workers. McManus argues that unpaid sick leave for essential, casual, and migrant workers is ‘driving the second wave’ and that
For Australians, COVID-19 regulations highlight these growing financial inequalities. It is the most vulnerable in our community who are most at-risk. Until the government prioritises investing in institutions and reforms to decrease the financial, social, and health gaps among Australians these systemic issues will not go away.
Maddison Moore is a freelance writer and editor currently studying a Master of Publishing and Communications. She is passionate about social justice, body positivity, and mental health awareness.