How COVID-19 Affected Virginia’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.
Virginia’s economy contracted by 2.5% between 2019 and 2020. Declines in sectors related to entertainment and tourism were steep enough to offset gains in construction and utilities — the only two sectors in the state that expanded in 2020.
Employment declines were even more pronounced in Virginia. The state’s leisure and hospitality sector shed over one-fifth of its workforce, and partially as a result, overall employment declined by 5.0%.
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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