As with so many periods of economic disruption, those in the most vulnerable position are likely to be most effected by the coronavirus pandemic.  This is emphasized by a recent study from Chicago’s Booth business school, which highlights how hourly workers have lost between 50-90% of their income since the outbreak, and particularly the lockdown that has accompanied it.

The study attempts to quantify the impact of the outbreak using data from around 40,000 small and medium businesses.  The researchers worked with the Homebase software company to gain access to a real-time data source of worker behavior.

“What is distinctive about the research is that we will have access to real-time data by industry and state that will help inform policymakers at every level about the key steps that must be taken to ensure the future viability of small businesses and their employees,” the researchers say.

The study, which is attempting to provide ongoing insights into the fallout of the pandemic, reveals that from January 1st to April 8th, 40% of Homebase’s SME clients had shut down, if only temporarily, with 91% operating at significantly reduced hours.

This reduction varies from industry to industry, especially due to the essential nature of certain occupations.  For instance, sectors such as beauty and leisure have seen a decline in hours of over 90% each, whereas the smallest reductions were seen in sectors such as transportation.  Even there, however, reductions of 50% were common.

“Hourly workers tend to be the most vulnerable during an economic downturn like this. Understanding how they’re being affected is critical for policymakers who are considering how to better support this workforce,” the researchers say.