The delta variant lowers income. Here’s what to do if you are concerned

As the Delta variant has made its way through the United States, there are signs that it is hitting the wallets of some Americans as well.

A new report from Morning Consult finds that the delta variant stimulates wage or income losses that have not yet appeared in weekly UI claims data.

That’s according to its weekly Lost Pay / Income Tracker, which measures the share of American adults who are currently experiencing loss of income and wages.

The tracker was created in April 2020 and asks an average of 20,000 adults every week if they experience a loss of pay or income.

The latest results indicate increased financial pressure among workers. For the week ending September 11, the share of lost wages or income claims rose to 13%. This is up from the pandemic low of 11.4% for the week ending August 14.

Those most likely to suffer a financial blow right now are those employed in service industries. Food and beverage workers are the most likely to have suffered wage or income losses at 25.7%, up from 19.1% in the past four weeks. Leisure and hospitality workers are also likely to have experienced significant drops in income, with 19.5%, according to the latest data.

These industries tend to have more hourly jobs that can change quickly due to the pandemic, said Jesse Wheeler, economic analyst at Morning Consult. Due to the face-to-face nature of many of these companies, they are particularly sensitive to government warrants and other restrictions.

“They are more vulnerable, and we have seen their vulnerability increase over the past two weeks,” Wheeler said.

Unemployment figures released Thursday showed weekly jobless claims rose to 332,000, up 20,000 from the previous week. Meanwhile, the August jobs report released earlier this month showed just 235,000 jobs added, up from 720,000 expected.

The latest drop in income comes as enhanced federal unemployment insurance benefits ended earlier this month. While weekly checks are now reduced, some people who were previously eligible, such as concert workers, can no longer file complaints.

If current trends in tracking wage / income losses continue, it could lead to a disappointing employment report in September, Wheeler said.

If signs of a labor market slowdown persist, it could affect Federal Reserve policy, particularly with the timing of its plans to curtail asset purchases, Wheeler said.

Certainly this will not help people who are currently experiencing loss of income.

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But there are steps a person who is currently unemployed or facing a reduction in work can take to strengthen their finances, according to Winnie Sun, managing director of Sun Group Wealth Partners.

The great thing Sun said she tells anyone to do is Google “Covid Financial Assistance” with your location enabled. That way, you can look for federal, state, and local programs that might help you that weren’t even on your radar, she said.

While many people tend to cut their budgets by starting with smaller expenses like Netflix subscriptions, the key is to start with the higher costs, Sun said.

Take a look at your living expenses and assess if you can save money by moving in with a loved one, family member or friend. Alternatively, you may be able to get a roommate in to help lower your overhead costs.

If you live in a two-car household, consider whether you could sell or lease a car.

If you know you’ll need health insurance, explore what’s available to you beyond COBRA.

(The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to continue to receive group health benefits under certain circumstances.)

One way to find new ways to get coverage is to ask your primary care providers, Sun suggested.

“A lot of times they’ll know of other low-cost options that you haven’t even thought of,” Sun said.

While some adjustments may be unwanted, it’s important to remember they’re temporary until things return to normal, she said.

A key part that should be a last resort is to withdraw money from your retirement accounts. “I wouldn’t touch it if you could,” Sun said.

Instead, focus on adding income where you can and reducing your recurring bills.

Also, don’t be afraid to consult a professional, such as an accountant or financial advisor.

“A lot of times people think you should only talk to us when you have a lot of income and are able to invest, and that’s actually not true,” Sun said.

Seeking help from a professional you trust can help you identify government programs you might be eligible for or resources you didn’t even think about using during this time.