How COVID-19 Affected Utah’s Economy
The U.S. economy reported its worst quarterly decline in modern history during the COVID-19 pandemic, with gross domestic product shrinking at an annual rate of 31.4% in the second quarter. The economy bounced back in the third quarter, but efforts to contain the virus’s spread throughout 2020 still resulted in a 3.5% annual economic contraction in the United States.
Arriving on the heels of a historic period of growth, COVID-19 brought about a decline in gross domestic product in every state in the country. However, no two state economies are alike, and partially as a result, some states were hit far harder than others.
Utah’s economy contracted by 0.1% in 2020, the smallest decline of any state. Due in large part to shutdowns of nonessential travel during the COVID-19 pandemic, the state’s arts, entertainment, recreation, accommodation, and food services sector contracted by 22.3% over that period, more than any other industry. Declines in industries related to tourism were partially offset, however, by growth in the state’s construction, information, and real estate sectors.
Economic contraction contributed to job losses in Utah. Overall employment fell by 1.6% from 2019 to 2020 in the state. Despite the decline, Utah’s job market is relatively strong. As of April, unemployment in the state stood at 2.8%, less than half the 6.1% U.S. jobless rate.
States are ranked based on the percentage change in real GDP from 2019 to 2020. Data on GDP and industry-specific real GDP came from the BEA. Data on average annual employment and the seasonally adjusted monthly unemployment rate each came from the Bureau of Labor Statistics.
RankStateChange in GDP, 2020 (%)April 2021 unemployment (%)Change in nonfarm employment, 2020 (%)1Hawaii-8.08.5-9.42Wyoming-7.05.4-4.13Oklahoma-6.14.3-4.94New York-5.98.2-10.35West Virginia-5.55.8-6.66Louisiana-5.57.3-1.87Vermont-5.42.9-9.38Michigan-5.44.9-5.89Alaska-4.96.7-8.710Tennessee-4.95.0-17.511New Hampshire-4.72.8-6.712Nevada-4.68.0-10.413Rhode Island-4.56.3-8.814Wisconsin-4.53.9-6.315Pennsylvania-4.47.41.916Maine-4.14.8-6.417Connecticut-4.18.1-7.718New Jersey-4.17.5-8.419South Carolina-4.15.0-5.120Illinois-4.07.1-7.121Ohio-4.04.7-6.122Delaware-3.96.4-6.023Massachusetts-3.86.5-9.024Minnesota-3.74.1-6.925Kentucky-3.74.7-5.626Missouri-3.64.1-4.827North Dakota-3.54.2-6.728Texas-3.56.7-4.329New Mexico-3.18.2-6.730Indiana-3.13.9-5.531Montana-3.03.7-3.132Kansas-3.03.5-4.633Florida-2.94.8-5.234Oregon-2.86.0-6.635Mississippi-2.86.2-4.336California-2.88.3-7.437Alabama-2.73.6-4.338Maryland-2.66.2-6.839Arkansas-2.64.4-3.040Georgia-2.54.3-4.641North Carolina-2.55.0-4.342Virginia-2.54.7-5.043Iowa-2.33.8-5.144Nebraska-2.12.8-3.645South Dakota-1.72.8-3.446Colorado-1.56.4-5.247Idaho-1.13.1-0.748Arizona-0.96.7-3.149Washington-0.75.5-5.350Utah-0.12.8-1.6
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