The stress of financial insecurity is a well-established risk factor for psychiatric morbidity [5,6,7]. Sources of this stress include actual financial insecurity (e.g., unemployment, insufficient income to meet needs) as well as the perceived threat of financial insecurity (e.g., fear of job loss), with some evidence suggesting that the latter is more detrimental [6]. Furthermore, higher levels of income inequality within a society are associated with poorer population mental health, particularly among low-income segments of the population [5, 7]. The mental health sequel of the COVID-19 economic fallout are likely to be substantial, with one model suggesting that unemployment caused by the pandemic could result in 9570 additional suicides per year worldwide [8].
Socially disadvantaged groups have experienced the financial ramifications of the pandemic more immediately and severely than their socially advantaged counterparts. Data from the U.S. Bureau of Labor Statistics show that, between April 2019 and April 2020, the unemployment rate increased from 3.6 to 14.7 for the U.S. as a whole but from 11.5 to 31.2 among Blacks and from 3.7 to 16.7 among Latinos (https://bit.ly/2XMvayE, Tables A-1, A-2). Data that account for lost wages from reduced hours provide a more complete picture of the pandemic’s inequitable financial impacts. The Urban Institute’s Health Reform Monitoring Survey—a nationally representative survey conducted between March 25 and April 10, 2020 (N = 9000)—found that 57% of Hispanics reported lost jobs, reduced work hours, or reduced work-related income during the pandemic compared to 41% of Blacks and 38% of non-Hispanic whites (https://urbn.is/2XoKFht).
While theory and prior research suggest that inequities in COVID-19’s financial impact could translate into mental health disparities, nationally representative public opinion surveys provide some supporting—albeit preliminary and not peer-reviewed—evidence. A Kaiser Family Foundation Health Tracking Poll conducted between March 25 and March 30, 2020 (N = 1226) found that 54% of respondents who had lost their job or income because of the pandemic endorsed the statement that the virus has had a “negative impact on their mental health,” compared to 40% of those who did not lose their job or income (https://bit.ly/3gMhjkU). A Pew Research Center American Trends Panel survey conducted between March 19 and March 24, 2020 (N = 11,537) found that the proportion of respondents experiencing “high” psychological distress was substantially larger among respondents in the lower than upper income tertile (33% vs 17%) and among Hispanics (28%) and Blacks (26%) than Whites (22%) (https://pewrsr.ch/374YqFr). In sum, financial inequities that are magnified by the COVID-19 pandemic could disproportionately increase risk for mental health problems among socially disadvantaged groups.