COVID-19

WalletHub: Massachusetts Ranked No. 9 in State Economies Most Exposed to Coronavirus

National – Massachusetts Ranks No. 9 in the State Economies Most Exposed to Coronavirus, according to WalletHub.

To identify which states are most vulnerable economically, WalletHub compared the 50 states and the District of Columbia across 10 key metrics. The data set ranges from the share of employment by small businesses to the share of a state’s GDP coming from highly affected industries and increases in unemployment insurance claims.

Economic Exposure to COVID-19 in Massachusetts (1=Best, 25=Avg.):

  • No. 23 – GDP Generated by High-Risk Industries as Share of Total State GDP
  • No. 18 – Share of Employment from Highly Impacted Industries
  • No. 8 – Increase in Number of Unemployment Insurance Initial Claims
  • No. 30 – State Rainy Day Funds as Share of State Expenditures
  • No. 3 – State Fiscal Condition Index

This is how the New England states ranked in State Economies Most Exposed to Coronavirus:

No. 2 – Rhode Island

No. 4 – Maine

No. 5 – New Hampshire

No. 9 – Massachusetts

No. 28 – Vermont

No. 39 – Connecticut

To view the full report, visit:
https://wallethub.com/edu/state-economies-most-exposed-to-coronavirus/72631/

Below is a Q&A with WalletHub analysts.

What’s the fastest way for state economies to rebound?

“Based on what has played out in other countries, the answer is pretty obvious: We need a very aggressive federal lockdown for as long as necessary to bring new infections down to near-zero levels. At the same time, we need to massively ramp up the production of N95 masks so that the general public can wear them whenever leaving the home. We also need to provide significant assistance to small businesses and consumers throughout. If we can manage that, we could have coronavirus in the rearview mirror by summertime,” said WalletHub CEO, Odysseas Papadimitriou.

What makes one state’s economy more exposed to coronavirus than another state’s economy?

“This pandemic has hit a number of industries so hard that they are furloughing at least 90% of their employees and going to zero revenue. Some states have a higher concentration of jobs in those industries or a higher share of state GDP from those industries than others,” said WalletHub analyst, Jill Gonzalez. “

WalletHub’s study used 10 core metrics to measure the impact of COVID-19 on state economies, with the most weight going to the share of each state’s GDP and workforce that are from highly affected industries, along with the rate at which initial unemployment insurance claims are being made. Highly affected industries include accommodation and food services; arts, entertainment and recreation services; retail businesses and others.”

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