Pamela Cruz. Peninsula 360 Press [P360P].
The COVID-19 pandemic has affected every aspect of Silicon Valley's economy and the community at large, so that income inequality in the area has grown twice as fast as the state or the nation over the past decade, according to the 2021 Silicon Valley Index, released today by the Institute for Regional Studies of Joint Venture Silicon Valley.
The paper details that, from the health impacts of the virus to its effect on employment, childcare, hunger and housing, the pandemic has spread across all sectors, often with long-term implications.
Problems that had long plagued the region have been magnified as a result of the pandemic, particularly racial and ethnic disparities, as well as the struggle faced by those unable to keep up with rising costs and the huge income and wealth divide, the study says.
And while some people moved easily into remote work, even prospering thanks to the astonishing growth of the technology sector market, others faced unemployment or worked away from home, risking SARS-CoV-2.
According to Join Venture Silicon Valley, the latest index shows that pandemic-related job losses pushed the unemployment rate to 11.6 percent in April, the highest on record, even higher than what was seen in the Great Recession or the dot.com bust.
Job losses were concentrated in lower income occupations, with the greatest accentuation in the accommodation and food services sector ?-41 percent?, the arts, entertainment and recreation sectors ?-54 percent? and personal services ?-54 percent?
The paper also notes that workers of African descent and Latinos filed initial unemployment insurance claims at rates 1.5 to two times higher than those of Caucasian workers.
Meanwhile, during the first three months of the pandemic, as many as 44,000 low-income renters were burdened by housing costs due to job losses, while the need for food assistance increased dramatically.
"The fact is that success is creating inequality. Bidding wars, the high price of tech talent and housing prices amplify the disparity. And yet COVID-19 has shown that our region is compassionate, resilient and has an economic engine that performs remarkably well under stress," said Russell Hancock, Joint Venture CEO and president of the Institute.
Among the findings revealed in the document was that foreign-born residents represent, more than ever before, a larger proportion of the region's population, at 39 percent, of which a large proportion are technology workers, particularly women.
The study also found that in Silicon Valley, only 16 percent of households own 81 percent of the wealth in the area; while the bottom 53 percent had only 2.0 percent of investable assets.
Rachel Massaro, Joint Venture vice president and research director at the Institute noted that "Silicon Valley's income inequality has grown twice as fast as California or the United States over the past decade. The wealth divide is even starker, with the top 16 percent of households owning a whopping 81 percent of the wealth; meanwhile, the bottom 18 percent have no savings at all."
On the other hand, he noted that, during 2020, there was a significant decrease in Internet speed, and that while 97 percent of Silicon Valley students had access to a computer and Internet at home, it was not adequate for distance learning.
Graduation rates declined, while high school dropout rates increased by three percentage points, with the most affected being homeless - 50 percent, English language learners - 28 percent, Latinos - 16 percent, and socioeconomically disadvantaged students - 16 percent.
In terms of voting, it was noted that voter registration and eligible voter turnout rates reached record levels, reaching 85 and 73 percent, respectively.
Meanwhile, turnout among young voters, which is traditionally low, rose to a record 63 percent in the area.
