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Special Report

Regional Economic Disparities

4Q 2020

Labor Market Conditions Uneven Across the United States; Dynamic Could Shift as the Health Crisis Accelerates in New Areas

Many inland states avoided a major disruption. The Midwest and Central U.S. fared better in the spring and summer months as they steered clear of the most extreme outbreaks. Lower population density was favorable to limit the spread of the virus, allowing less-strict shutdowns and fast-tracked reopenings. Additionally, the major markets here are less reliant on visitor spending and downtown foot traffic, so the shock was less disruptive compared with dense coastal and tourism-reliant states. Although, renormalizing consumer behavior is coinciding with a slower transmission of the virus in places like New York City, providing some positive momentum for these areas. 
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