The coronavirus pandemic has had devastating effects on the economy. According to a survey published by INSEE last Wednesday, a quarter of households have become poorer because of the confinement put in place between March 17 and May 11, 2020. The fall in economic activity has notably led to an overall drop in income gross available 2.6% during the second quarter of the year.
A strong disparity between households
The Covid-19 continues to widen inequalities. A investigation was set up by Drees, Inserm, Santé publique France and INSEE. 2% said their financial situation improved while two thirds said their situation was stable. In contrast, 23% of households said last May that their financial situation had deteriorated since the start of the lockdown, when they already had low incomes before that. Among the poorest 10% of households, 35% in particular saw their financial situation deteriorate.
Overall, 42% of households with financial degradation (34% of the general population) said their financial situation was fair and that care should be taken, 27% (11% of the general population ) said their financial situation was difficult and 7% (2% of the total population) said they could not support themselves without going into debt.
Young people, artisans and traders are the most affected
According to the survey, households with children are more affected by impoverishment than households without children. Young people would be particularly exposed to the consequences of confinement on economic activity. More than a third of those who worked before the confinement found themselves notably without a job in May 2020.
In addition, if we base ourselves on socio-professional categories, artisans and traders are the most affected by the impoverishment caused by confinement. More than half of the self-employed reported a deterioration in their financial situation. Despite the fact that technical or partial unemployment has allowed many workers to keep their jobs, their incomes have fallen.
A third of workers went through technical or partial unemployment last May. Not only because of this, but also because of cases of illness and time off, the number of working hours per person has fallen by 34% from last year throughout the lockdown. The drop in the number of working hours is more marked in the accommodation, catering, arts and entertainment and construction sectors. In addition, the Secours populaire had already warned that confinement has plunged many French people into precariousness.