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JOBLESSNESS AMONG DOMESTIC WORKER RESPONDENTS DECREASED TO 15% IN JUNE

REPORTED UNDEREMPLOYMENT AND WAGE DISTRIBUTION IMPROVED

Domestic Workers Economic Situation Report · June 2024

With analysis from the second quarter of 2024

Source: La Alianza surveys, NDWA
Released: July 9, 2024

The most recent Bureau of Labor Statistics (BLS) Employment Situation Report shows job growth slightly above market expectation in June, and the general unemployment rate ticked up. [1]

NDWA’s June data shows a tick downward to 15% in joblessness for surveyed domestic workers. Joblessness has stabilized between 15% and 16% since March. However, it 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.

June 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 July 5, the BLS released new employment data for June 2024.

  • The number of jobs added was slightly above market expectations.

  • The general unemployment rate ticked up.

  • The unemployment rate for Latina women increased.

  • The unemployment rate for Black women increased.

  • 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.

NDWA’s June data shows a decrease in joblessness for Spanish-speaking surveyed domestic workers. While the share of joblessness for these 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.

June Domestic Worker Economic Situation

Below are the main findings on the economic situation of surveyed Spanish-speaking domestic workers in June. 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 decreased from 19% to 15% on average in the second quarter of 2024.

    • Similarly, joblessness decreased from 16% to 15% from May to June.

    • This decrease follows several consecutive quarterly increases in joblessness over the past year.

  • Underemployment decreased slightly to 66% on average in the second quarter, from 67% on average in the prior quarter.

    • The main reason for underemployment that workers reported in the second quarter was that they could not find more clients (64%), followed by having a health problem (14%) and taking care of a family member (13%), while 9% chose some “other” reason.

    • Month-to-month underemployment decreased from 73% in May to 59% in June.

  • The wage distribution improved during the second quarter of 2024, with fewer respondents reporting earning less than $15 per hour.

    • 51% of domestic worker respondents reported earning less than $15 per hour on average this quarter, compared to 54% during the first quarter.

    • This follows a consistent improvement in the wage distribution since the first quarter of 2023.

    • In June, 49% of respondents reported earning less than $15 per hour on average, a decrease from 50% in May.

Economic Security

  • In the second quarter of 2024, food scarcity increased slightly to 84%.

    • Respondents said they either often (14%) or sometimes (70%) faced food scarcity the week before being surveyed.

    • This follows a consistent increase in food scarcity since the second quarter of 2023.

      • However, food scarcity in June decreased to 82% from 84% in May.

  • Surveyed domestic workers’ housing insecurity increased in the second quarter of 2024 to 51%.

    • 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.

    • Housing insecurity in June decreased to 45% from 53% in May.

  • The share of domestic worker respondents who struggled to afford regular household expenses has remained steady for the past three quarters.

    • On average this quarter, 55% of respondents reported it was very or somewhat difficult to afford regular household expenses - such as food, housing, car payments, and medical expenses.

    • Domestic worker respondents experienced varying levels of difficulty affording these expenses: 6% reported no difficulty, 39% reported little difficulty, 29% reported some difficulty, and 26% reported large difficulty.

    • In June, the share of respondents who reported some or large difficulty affording regular expenses decreased to 50% from 57% in May.

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.

In September 2023, the survey sample was expanded to increase the volume of responses and address survey fatigue. We learned that respondents newly added to the survey schedule reported lower joblessness on average compared to prior respondents. To reduce monthly volatility we updated the rotation groups in 2024 to more evenly distribute the newly added respondents across the survey schedule.

The numbers presented in this report include data from 7 biweekly surveys in the second quarter of 2024. The total number of fully completed surveys, which includes both new and repeated respondents, was 5,769. For greater detail on completions broken down by month, please see the table below.

Month Number of surveys sent Number of surveys completed
June 2 901
May 3 2,630
April 2 2,238

Questions about hours worked and hourly wages are asked biweekly, and questions regarding underemployment, job search, and economic security are asked monthly.

For questions or feedback, please contact us here.

Notes

1 White House Council of Economic Advisers (2024), The June 2024 Employment Report

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.