JOBLESSNESS AMONG DOMESTIC WORKER RESPONDENTS INCREASED TO 18% IN AUGUST
REPORTED ECONOMIC SECURITY WORSENED
Domestic Workers Economic Situation Report · August 2024
Source: La Alianza surveys, NDWA
Released: September 9, 2024
The most recent Bureau of Labor Statistics (BLS) Employment Situation Report shows job growth below market expectation in August, and the general unemployment rate ticked down as expected. [1]
NDWA’s August data shows that joblessness for surveyed domestic workers increased to 18% in August after remaining between 15-16% since March 2024. It also remains above the rate of 9% who reported having no jobs before COVID-19. [2]
Domestic workers are the nannies, homecare workers, and house cleaners whose work is essential to our economy, yet they are some of the most vulnerable and marginalized workers. They work in private homes and often have multiple employers, meaning they may have to schedule several jobs to make ends meet. Domestic workers earn less than the average US worker and are three times as likely to be living in poverty. [3]
La Alianza survey data from Spanish-speaking domestic workers shows how respondents continue to face low wages and high levels of unemployment and underemployment.
August Jobs Report - Bureau of Labor Statistics
The BLS releases an Employment Situation Summary with employment and other labor market data each month. It’s an important report to keep track of how the economy is doing. However, domestic workers and other vulnerable workers are underrepresented in official data. [4] Here, we present an overview of the BLS Jobs report along with NDWA’s data, which shows the employment and economic situation of thousands of Spanish-speaking domestic workers.
On September 6, the BLS released new employment data for August 2024.
The number of jobs added was below market expectations.
The general unemployment rate ticked down.
The unemployment rate for Latina women decreased.
The seasonally adjusted unemployment rate for Black women remained the same, while the non-seasonally adjusted rate ticked up.
The unemployment rates for Black and Latinx adults continue to be higher compared to the rates for white adults.
Average hourly earnings for employees in private nonfarm payrolls increased.
In contrast to the unemployment rate decrease among Latina women in the BLS data, NDWA’s August data shows an increase in joblessness among surveyed Spanish-speaking domestic workers. While the share of joblessness for surveyed workers is not directly comparable to the unemployment rate nationwide,* looking at trends in the data for surveyed Spanish-speaking domestic workers in the context of national trends can support our understanding of the sector as it relates to the broader economy.
August Domestic Worker Economic Situation
Below are the main findings on the economic situation of surveyed Spanish-speaking domestic workers in August. Note that monthly numbers may be volatile, which is why we look at the findings as they relate to prior trends in the data and the economic situation of the overall economy. At the end of each quarter, we calculate quarterly averages for key economic indicators.
Jobs and Wages
Joblessness increased from 15% in July to 18% in August.
Joblessness had remained between 15% and 16% since March, after decreasing from 20% and 19% in the first two months of the year.
Underemployment worsened in August, increasing to 68% from 65% the prior month.
The main reason for underemployment was that workers could not find clients (56%), followed by having a health problem (17%), taking care of a family member (17%), and “other” (10%).
August's underemployment rate is higher than the averages in the first two quarters of 2024, 67% and 66% respectively.
The wage distribution worsened, with 52% of working respondents earning less than $15 per hour in August compared to 49% the prior two months.
However, wages in August remained consistent with quarterly averages throughout the year.
Economic Security
Food scarcity worsened slightly, increasing to 83% in August.
Domestic worker respondents said their households faced food scarcity either often (16%) or sometimes (67%) in August.
However, surveyed domestic workers experienced slightly improved food scarcity in August compared to the first two quarterly averages in 2024.
Housing insecurity worsened in August, increasing to 55%.
This is higher than the quarterly averages in the first two quarters of 2024, 48% and 51%.
In August, 8% of respondents reported that the question regarding the ability to afford rent or mortgage does not apply to them. This does not necessarily mean they are housing secure. While some of these respondents may be debt-free homeowners, others may be temporarily staying with friends or family, staying in shelters, or facing homelessness.
A larger share of respondents reported difficulty affording regular household expenses in August, with 53% of respondents finding it very or somewhat difficult.
Domestic worker respondents experienced varying levels of difficulty affording regular household expenses, such as food, housing, car payments, and medical expenses: 6% reported no difficulty, 41% reported little difficulty, 25% reported some difficulty, and 28% reported large difficulty.
Difficulty affording regular household expenses was 55% on average in the first two quarters of 2024.
About the surveys
NDWA surveys Spanish-speaking domestic workers via La Alianza, a Messenger chatbot. Starting in 2024, the survey has been sent every other week excluding office closures. At the end of each survey, La Alianza provides respondents with relevant news articles and resources in Spanish. To learn more about NDWA’s La Alianza survey of Spanish-speaking domestic workers, see the methodology section of this report.
The numbers presented in this report include data from 2 biweekly surveys in August. The total number of fully completed surveys, which includes both new and repeated respondents, was 1,603.
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Notes
1 Bloomberg (2024), Downward US Payroll Revisions Add to Soft Labor Market Picture
2 NDWA Labs (2020), 6 Months in Crisis: The Impact of COVID-19 on Domestic Workers
3 Economic Policy Institute (2022), Domestic Workers Chartbook
4 Kopparam (2022), What federal statistical agencies can do to improve survey response rates among Hispanic communities in the United States
* Unlike unemployment rates, joblessness for domestic workers may include people who are not working but are currently unavailable to work, or not actively looking for jobs. Additionally, the NDWA’s joblessness rate for surveyed domestic workers is not seasonally adjusted, while BLS unemployment rates are adjusted.