San Francisco

THE coronavirus pandemic is exacerbating wealth and racial inequalities around the world. Nowhere is that more apparent than in San Francisco.

While many low-income employees in the service sector have been laid off or risk getting sick if they do go to work, the city's high-paid tech workers have been mostly shielded.

The engineers and product managers who helped push up the cost of living in the area over the last 15 years aren't nearly as affected by the pandemic, with companies like Alphabet Inc and Facebook Inc giving them cash bonuses to upgrade their home offices and organising virtual yoga sessions to help them stay fit.

Most tech employees aren't worried about getting fired and the mostly-digital nature of software work means they can safely do their jobs from home. Many have even left the Bay Area completely.

To help staff cope while working remotely, companies are rolling out perks. Salesforce.com Inc recently sponsored a virtual talent show and is running a week-long "adventurers club" to entertain workers' kids while they're stuck at home. Microsoft Corp is offering parents extra leave time amid school and camp closings.

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At the same time, service industry workers like Joe Grandov, who has a part-time security job at San Francisco International Airport, are struggling. Mr Grandov, 65, says his hours have been cut by up to 20 a week since the pandemic began because he hasn't been able to pick up overtime shifts. He also used to earn extra money driving for Lyft Inc but said he had to stop because he was making as little as US$35 a week.

Business travel has come to a halt, which is hurting jobs like his that depend on a lively tech sector. "It's not been easy," said Mr Grandov, a member of the airport's local union. "We've been selling things we don't need because we need the money more."

This divide between the tech and service industry is compounding the income disparities that have plagued the Bay Area for years. Since January, earnings among low-income workers in San Francisco County have fallen 52.1 per cent, among the highest in the state, according to data from Opportunity Insights, a Harvard University research lab.

"The service sector already had stagnating wages, then you introduce a pandemic, and it becomes not just an income gap but a stark divide between those who will survive versus those who can't," said Russell Hancock, chief executive officer of Joint Venture Silicon Valley, a nonprofit that analyses the region's economy.

The changes cut across racial lines too, deepening inequalities between white and non-white workers in the area. More than 30 per cent of the Bay Area is black or Latino, according to the Bay Area Equity Atlas. Fewer than 10 per cent of Facebook and Google staff are black or Latino, according to the companies' latest diversity reports. The inequalities extend to the virus impact: In San Francisco, Hispanic and Latino people make up 50 per cent of cases and about 15 per cent of the population. In Santa Clara County, Latinos are 47 per cent of cases and 26 per cent of the population.

The effects of low-income job losses are already weighing on workers, according to Richard Garbarino, mayor of South San Francisco.

While the city of about 68,000 hasn't had major food insecurity issues in the past, it recently partnered with a food bank to distribute 750 meal boxes a week.

The pandemic has hit low-income families the hardest because they often rely on multiple part-time jobs, Mr Garbarino said. Over 55 per cent of leisure and hospitality jobs were cut between May 2019 and May 2020 in San Francisco and San Mateo Counties, the most of any industry in the area, according to data from California's Employment Development Department. Over the same period, professional and business services saw a 2 per cent drop. BLOOMBERG