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Although Kashirah Jackson is back at work, she’s still far from recovering from the economic upheaval the coronavirus pandemic wreaked on her finances. 

Early last year, the independent hair stylist’s business in Charlotte, North Carolina, was doing well and she was socking away her earnings for a down payment on a home. But the state lockdown left her unable to see her clients and forced her to deplete her savings so she and her 1-year-old daughter could survive. 

Now, only about 60% of her customers have returned. And though Jackson is still collecting some unemployment benefits, her income remains down from pre-pandemic times.

While the coronavirus pandemic has cut a wide swath through many people’s bank accounts, it has also highlighted the economic insecurity that many Black Americans face.

The inequity: A quarter of Black Americans said their current financial situation was worse now than it was a year ago, before the pandemic, compared to 17% of their White peers, according to a Pew Research Center survey conducted earlier this year. Among adults who are usually able to save, 44% of Black respondents said they are saving less than they were in early 2020, compared to just over a quarter of White Americans.

Far more Black Americans reported being concerned about being able to afford food, cover their rent or mortgage and pay their bills, said Khadijah Edwards, a research associate at Pew.

This inequity stems in part from Black Americans having far less wealth and savings to turn to during tough times than White Americans. And the gaps also give Black households less of a springboard to recover when the economy picks up again.

The typical non-Hispanic White household had a net worth of $188,200 in 2019, compared with $24,100 for a non-Hispanic Black family, according to Federal Reserve Bank data. 

The big difference in homeownership, which is key to building wealth, accounts for part of the chasm. It’s often more difficult for Black Americans to buy homes because they have lower median incomes, are less likely to receive inheritances or assistance from their parents and must contend with historical racism in real estate and its lasting impacts.

Only 45% of Black Americans own homes, compared to nearly 74% of White Americans, according to the most recent Census Bureau data.

Also contributing to their vulnerability: Black Americans are much less likely to invest in stocks or mutual funds than White Americans and have less than a quarter of the savings set aside for emergencies.

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