Several States reported stronger economies after Covid
The United States has not recovered from the coronavirus crisis yet. The country still has a long way to go until it returns to its pre-pandemic normal. However, some states are currently doing better economically than they were before the pandemic, according to the Back-to-Normal Index.
Florida, South Dakota, Rhode Island, Idaho, and Nebraska are thriving. These states are operating at or above where their economies were in March 2020, before the virus outbreaks forced businesses to shutter and people to stay home. The index is composed of a basket of economic indicators that includes claims for jobless benefits, unemployment rates, consumer behavior, and consumer spending.
According to the index, South Dakota’s economy rallied the most at 106% of its pre-pandemic strength. Florida’s economy is the second strongest at 101%. The other three states are also operating at 100% of the pre-coronavirus level.
Furthermore, South Dakota and Nebraska have the lowest unemployment rates in the United States at 2.8% as of April. Meanwhile, the national rate is currently 6.1%. Utah and New Hampshire are also at 2.8% for joblessness. Despite that, their performances on the back-to-normal index are slightly lower, at 94% and 95%, respectively.
What about the New York?
New York has the furthest to go to get back to normal. That’s not surprising, considering that it was the epicenter of pandemic outbreaks. The state is currently operating at only 79% of its pre-pandemic level. Besides, its April unemployment rate was the third-highest in the country at 8.2%, behind only California and Hawaii.
As the data shows, the recovery is very uneven. The labor market is rebounding at different paces, as well. States that have larger service industries or are more reliant on tourism are slower to recover than others.
Despite many difficulties, most economists predict that the summer will push the US economy higher as more Covid-19 pandemic restrictions are eased.
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