Second Coronavirus Survey Sees Unemployment Double

A lot can change in two weeks, especially during a global pandemic.

Both worldwide and at home in the United States, COVID-19 cases and deaths have risen dramatically since LendEDU published our first Coronavirus survey on March 23rd.

Federal guidance was extended until the end of April at least, the largest economic stimulus package in American history was signed by President Trump, and a mind-numbing 6.6 million Americans applied for unemployment benefits in a single week.

With the situation being so fluid, LendEDU has again conducted a survey of 1,000 adult Americans to see how the finances of Americans are being impacted by COVID-19.

And compared to our first survey from two weeks ago, the financial situation for most Americans is getting a lot worse due to the outbreak.

Click here to jump to the full survey results

If you would like to see a specific breakdown of the data other than those provided (ex. state-by-state, gender, age, employment status), or a full survey-to-survey comparison, please email me at [email protected].

Observations & Analysis

All data is based on a survey of 1,000 adult Americans commissioned by LendEDU and conducted by survey platform Pollfish. The survey was conducted on April 1, 2020. For some questions, the answer percentages may not add up to 100% exactly due to rounding.

You can see results from our first Coronavirus survey that was conducted on March 18, 2020 here.

Compared to Survey From Two Weeks Ago, Unemployment Doubles

With both large and small businesses shutting down and the economy heading towards a recession, the U.S. has seen a surge in unemployment in the wake of COVID-19. In the last two weeks, 10 million Americans have filed jobless claims.

From survey-to-survey, our data displayed a similar trend.

The percentage of Americans that have lost their jobs due to the COVID-19 pandemic doubled from 6% on March 18 to 12% on April 1. There was also a drop of 11 percentage points in terms of respondents who have seen no changes to their job, while the percentage of people that have been furloughed increased by 2 percentage points.

The rising unemployment trend is of vital concern to the consumer economy because Americans without jobs will stop spending money. This is why the recent stimulus package is trying to protect paychecks by providing loans to small businesses that turn into grants if no one is laid off.

But still, unemployment will keep rising in the coming weeks, and some economists predict it will get to 32% at its peak.

COVID-19 Expenses Nearly Double, Use of Savings Increases

Around the country, grocery and convenience stores have empty shelves as Americans stock up on supplies and food in response to the global pandemic. From survey-to-survey, we saw an increase of 88% in terms of Coronavirus-related expenses.

We also found that 63% of poll participants were concerned about running out of money in their accounts due to the Coronavirus and its impacts, while 32% weren’t, and 5% opted not to say.

Amongst folks that recently lost their jobs, 88% were worried about running their bank accounts dry.

And from survey-to-survey, we noticed an increase in the percentage of Americans that have or will use money from a savings account or emergency fund to cover their expenses during the COVID-19 outbreak.

Americans Will Use Stimulus Checks for Food & Supplies, Rent or Mortage Payments, or Save It

During the time between LendEDU’s two surveys, federal legislators were able to pass the Coronavirus economic stimulus package that was signed by President Trump on March 27, 2020.

As part of the package, Americans making less than $75,000 will receive a one-time government payment of $1,200, while those making up to $99,000 will receive less than that.

We asked eligible respondents how they planned on spending the majority of their payment after they receive it.

The vast majority of poll participants will be saving their Coronavirus stimulus check (30%), using it for either food and supplies (30%), or making a rent or mortgage payment with it (20%).

Concerns Over Retirement Savings Grow

The market has not been immune to the impacts of COVID-19, and despite a string of strong days immediately after the passing of the stimulus package, the Dow Jones had the worst first-quarter drop in its 124-year history, while the S&P 500’s 20% quarterly drop was the index’s sharpest decline since the 2008 financial crisis.

At this point, a recession is nearly a certainty. Americans, especially older ones, are concerned about their retirement savings, and those fears have grown from survey-to-survey as the situation worsens.

In two weeks, there’s been an increase of 9 percentage points in terms of adult Americans that are worried about their retirement savings and a drop of 10 percentage points in terms of respondents that are not concerned.

Additionally, on March 18, 67% of Americans ages 55 and up were concerned about their retirement nest eggs. On April 1, that percentage for the same cohort increased to 71%.

Small Signs That Student Loan Changes May Be Helping

Amongst the many legislative actions that have been taken in recent weeks to combat COVID-19, quite a few are regarding student loans.

For example, interest rates on federal student loans are now frozen at 0% until September 30, 2020, while borrowers can also suspend their student loan payments during that time if needed.

According to our survey-to-survey results, it appears that the recent actions might be alleviating some stress amongst student loan borrowers.

Over the course of two weeks, there was a small, but notable, drop in the percentage of student loan borrowers that are worried about making their monthly payments. Specifically, we saw the percentage move from 63% on March 18 to 60% on April 1, while the percentage of respondents that were not concerned increased from 32% on March 18 to 36% on April 1.

Full Survey Results

The results for identical questions from the first survey that was conducted on March 18, 2020 are in parentheses.

1. Are you eligible to receive the one-time government payment of $1,200 or less as part of the Coronavirus economic stimulus package?

66% of respondents answered “Yes”
12% of respondents answered “No”
22% of respondents answered “Not sure/I’d rather not say”

2. (Asked only to those who answered “Yes” to Q1) What will be your main use of that one-time payment in the immediate future after you receive it?

30% of respondents answered “Save it in a savings account or emergency fund.”
2% of respondents answered “Invest it in the market.”
30% of respondents answered “Spend it on food, supplies, and other necessities.”
20% of respondents answered “Use it for a rent or mortgage payment.”
7% of respondents answered “Use it for a student loan, credit card, or other debt payment.”
1% of respondents answered “Use it for a vacation, entertainment, or other non-essential purchase (i.e. video games, Netflix account, etc.).”
4% of respondents answered “Other”
5% of respondents answered “Not sure”

3. (Asked only to those who answered “Yes” to Q1) Do you think this check, and whatever other government assistance you and your family (if applicable) are eligible for, will offer enough help to support you financially for the next 1 to 2 months?

41% of respondents answered “Yes, it will help a lot.”
37% of respondents answered “It will help temporarily, but I will need additional assistance if this continues.”
18% of respondents answered “It offers minimal help.”
4% of respondents answered “Not sure/I’d rather not say”

4. Has the passing of the Coronavirus economic stimulus package helped so far in relieving any financial, job-related, or other concerns that you had?

33% of respondents answered “Yes”
50% of respondents answered “No”
17% of respondents answered “Not sure/I’d rather not say”

5. How has the Coronavirus and its impacts changed your job status?

24% of respondents answered “I still have my same job, nothing has changed.” (35%)
12% of respondents answered “I lost my job.” (6%)
12% of respondents answered “My hours have been partially cut.” (13%)
13% of respondents answered “My hours have been completely cut, but I haven’t lost my job (Furloughed).” (11%)
38% of respondents answered “None of the above/Already unemployed before it.” (36%)

6. (Asked only to those who answered that they still have a job in some capacity) Are you worried about your job security because of the Coronavirus and its impacts?

55% of respondents answered “Yes” (57%)
38% of respondents answered “No” (36%)
8% of respondents answered “Not sure/I’d rather not say” (7%)

7. (Asked only to those who answered that they still have a job in some capacity or just lost their job due to Coronavirus) Before Coronavirus and its impacts began seriously changing the U.S., were you living paycheck to paycheck?

63% of respondents answered “Yes” (64%)
34% of respondents answered “No” (32%)
4% of respondents answered “I’d rather not say” (4%)

8. Due to the Coronavirus and its impacts, will you/have you already used money from a savings account or emergency fund to cover your expenses?

51% of respondents answered “Yes” (44%)
42% of respondents answered “No” (47%)
7% of respondents answered “Not sure/I’d rather not say” (9%)

9. Are you concerned about running out of money in your accounts due to the Coronavirus and its impacts?

63% of respondents answered “Yes”
32% of respondents answered “No”
5% of respondents answered “Not sure/I’d rather not say”

10. In your best estimation, how much money have you spent on supplies and food due to the Coronavirus and its impacts?

The average amount of money spent on supplies and food due to the Coronavirus and its impacts was $631.06, which is up 88% from the survey two weeks ago when the average amount was $335.65.

11. Are you currently investing or saving for retirement through something like a 401(k), Roth IRA, or high-yield savings account?

35% of respondents answered “Yes”(38%)
59% of respondents answered “No” (57%)
6% of respondents answered “I’d rather not say” (5%)

12. (Asked only to those who answered “Yes” to Q11) Are you concerned that the Coronavirus and its impacts will seriously damage your retirement savings and plans?

72% of respondents answered “Yes” (63%)
20% of respondents answered “No” (30%)
7% of respondents answered “Not sure/I’d rather not say” (7%)

13. Do you currently have a mortgage?

32% of respondents answered “Yes” (35%)
65% of respondents answered “No” (63%)
3% of respondents answered “I’d rather not say” (2%)

14. (Asked only to those answered “Yes” to Q13) Are you worried about meeting your monthly mortgage payments due to the Coronavirus and its impacts?

60% of respondents answered “Yes” (57%)
36% of respondents answered “No” (36%)
4% of respondents answered “Not sure/I’d rather not say” (7%)

15. Do you currently have outstanding student loan debt?

21% of respondents answered “Yes” (23%)
77% of respondents answered “No” (75%)
2% of respondents answered “I’d rather not say” (2%)

16. (Asked only to those who answered “Yes” to Q15) Are you worried about meeting your monthly student loan payments due to the Coronavirus and its impacts?

60% of respondents answered “Yes” (63%)
36% of respondents answered “No” (32%)
4% of respondents answered “Not sure/I’d rather not say” (5%)

17. Do you currently have open credit card accounts?

63% of respondents answered “Yes” (63%)
34% of respondents answered “No” (35%)
3% of respondents answered “I’d rather not say” (2%)

18. (Asked only to those who answered “Yes” to Q17) Are you worried about meeting your monthly credit card payments due to the Coronavirus and its impacts?

53% of respondents answered “Yes” (54%)
44% of respondents answered “No” (42%)
4% of respondents answered “Not sure/I’d rather not say” (4%)

19. (Asked only to those who answered “Yes” to Q17) Due to the Coronavirus and its impacts, will you/have you been taking on more credit card debt than desired to cover your expenses?

39% of respondents answered “Yes” (42%)
55% of respondents answered “No” (53%)
6% of respondents answered “Not sure/I’d rather not say” (6%)

20. Were you actively invested in the stock market through a personal brokerage account when the Coronavirus and its impacts began seriously changing the U.S. and is that account(s) still open?

28% of respondents answered “Yes” (27%)
68% of respondents answered “No” (70%)
3% of respondents answered “I’d rather not say” (4%)

21. (Asked only to those who answered “Yes” to Q20) Have you lost or made money in the stock market through your personal brokerage account since that point?

81% of respondents answered “Lost money” (79%)
10% of respondents answered “Made money” (8%)
9% of respondents answered “Not sure/I’d rather not say” (12%)

22. (Asked only to those who answered “Yes” to Q20) Going forward, what do you think will be your predominant stock market play as the Coronavirus continues to have an impact?

21% of respondents answered “Buying more stock” (21%)
10% of respondents answered “Selling more stock” (13%)
55% of respondents answered “Holding steady” (52%)
15% of respondents answered “Not sure/I’d rather not say” (13%)

Should You Use a Personal Loan During the Coronavirus?

It’s no secret that the global pandemic has made finances tight for many consumers. Between layoffs and market losses, many folks are running out of cash to afford everyday necessities.

If you are in need of money, a personal loan might help during this tough time. Here are some things you should know about taking out a personal loan during the coronavirus pandemic.

How Do You Get a Personal Loan?

The process of taking out a personal loan isn’t overly complicated. During the application process, you’ll need identification, proof of income, and proof of assets. You’ll also likely need to verify your address and submit your Social Security number.

Having a good credit score should help you secure a low-interest personal loan. Additionally, applying for a personal loan with a co-applicant might be a good idea, depending on your current financial situation.

If you are a non-U.S. citizen, don’t worry, as there are still personal loans available to you, as well.

Types of Personal Loans

There are a wide variety of personal loans, including personal loans for consumers with good credit, fair credit, or even bad credit. Furthermore, you can either shop for an online personal loan or go the traditional route and take out a personal loan from your local bank.

Personal Loan Alternatives

If you don’t want to take out a personal loan and you are a homeowner, then you could look into either a home equity loan or home equity line of credit (HELOC) as an alternative form of financing.

Additionally, you could always go with the tried-and-true financing method of taking out a credit card to access some extra funds.

Methodology

All data found within this report is based on an online survey commissioned by LendEDU and conducted online by survey platform Pollfish. In total, 1,000 adult Americans ages 18 and up were surveyed. The appropriate respondents were found via Pollfish’s age-filtering feature. This survey was conducted on April 1, 2020. All respondents were asked to answer all questions truthfully and to the best of their abilities.

See more of LendEDU’s Research