COVID-19 could change the welfare state forever

Jun 30, 2020

New York City Mayor Bill de Blasio applauds his barber Alberto Amore after getting a haircut at Astor Place Hairstyles during the phase two re-opening of businesses following the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., June 23, 2020. REUTERS/Caitlin Ochs

The effects of the coronavirus could lead to a more generous and long standing welfare state. Image: REUTERS/Caitlin Ochs

Jeevun Sandher

PhD Candidate, Department of Political Economy, King's College London

Hanna Kleider

Lecturer in public policy, King's College London, King's College London

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Social Spending includes the following: health, old age, incapacity-related benefits, family, active labour market programmes, unemployment, and housing.

Social spending over the last 140 years. Image: Our World in Data

Dotted line indicates the start of the Great Recession in 2007.

Unemployment insurance related and the great Depression (dotted line). Image: Comparative Welfare Entitlements

Australian Bureau of Statistics, Statistics Canada, Bureau of Labor Statistics (US), Office for National Statistics (UK)

Unemployment rates. Image: Our World in Data

Canada figure includes both Employment Insurance and Canada Emergency Response Benefit. US figure takes average UI payment across states plus national Pandemic Unemployment Compensation Payment of $600. Average Wage in 2019 used for calculations across all countries.

Pre-COVID and current unemployment insurance. Image: Australian Government, Government of Canada, Center for Budget and Policy Priorities (US) & Department for Work and Pensions (UK).

Unemployment Risk by Earnings in the UK and USA.

Job loss probability depending on individual income 2019. Image: COVID Inequality Project

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