As more people go back to work, and the economy slowly tries to heal, many states have been hit harder than others. For instance, unemployment numbers in the Northeast and West have been much higher than their counterparts in the South and Midwest. This is likely the case for a number of reasons. One being that many states in the South and Midwest opened up earlier and to a greater extent than states in the Northeast or West. Additionally, overall public sentiment in those areas toward the virus was much less than areas such as New York or California. Another issue in the Northeast and West comes with population density. Many large cities and tightly packed states make up the regions, and with the virus there has been a push to leave the areas. For example, thousands of people have moved from New York City in an effort to get away from the dangers of the virus and because they simply can no longer afford it. As people disperse, demand has dropped significantly.
States that rely heavily on tourism have also been hit much harder than states that do not. Hawaii and Rhode Island businesses make the majority of their money from flocks of tourists coming to their beaches each year. With coronavirus, the numbers have been reduced dramatically, and the scale of operation has been cut back. Many businesses simply cannot afford to keep as many people employed, leading to higher unemployment levels in these areas. As we move closer to a new year, many state economies may shift their means of production in order to survive. Population hubs such as cities may see hits to their workforce as people look to find less crowded places to live. Many states will be hit harder than others due to a plethora of reasons, though only time will tell which ones are able to recover.
https://www.wsj.com/articles/jobless-rates-in-northeast-west-are-highest-in-nation-11600447829
4 comments:
I agree with points made in this post. The states with more service industries will tend to recover faster than others. For example NY and California are more likely to recover faster than Utah or Montana. Even though they were hit by covid more than the other states, they have the economic capability and more skilled workers to recover from the damage caused by the pandemic. I do believe that it will take a while for tourism industry to return back to normal but that may not be for years to come.
It will be interesting to see how trends in residential communities are affected by COVID. With large cities being epicenters for disease spread and a trend of work environments becoming remote it would not be surprising if cities like New York saw a large decrease in population. This would likely hurt recovery rates in those cities as less service jobs would be required due to a lowered ppopulation.
I agree with this post. The states that rely heavily on tourism will have a hard time recovering since many people still have not returned to traveling and coronavirus hit right at the beginning of spring break/summer vacations. This also reminds me of schools and universities as well, big popular schools will be fine, but some small schools have been shut down already and it worries me that if schools get sent home and affected by coronavirus longer, that more will have to shut down.
I agree as well. Tourist heavy areas are struggling due to the fact that traveling came to a halt when corona hit. This is the same for small college towns. This pandemic may have caused people to hold off on their travel plans for a long time. They may have a difficult time building their business back up due to this.
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