How COVID-19 Has Affected Michigan’s Economy | Michigan

The U.S. economy recorded its worst quarterly decline in modern history during the COVID-19 pandemic, with gross domestic product contracting at an annual rate of 31.4% in the second quarter. The economy rebounded in the third quarter, but efforts to contain the spread of the virus throughout 2020 still resulted in a 3.5% annual economic contraction in the United States.

Coming on the heels of a historic period of growth, COVID-19 has led to a drop in gross domestic product in every state across the country. However, the economies of no two states are alike and, in part, some states have been hit much harder than others.

Michigan is one of eight states to record an economic decline greater than 5% in 2020. The state’s economic output fell 5.4% from $471.6 billion in 2019 to 446, $2 billion in 2020. Manufacturing was the biggest drag on growth, with the sector declining output by 7.5% and net loss of 1.4 percentage points of GDP.

Employment in Michigan’s manufacturing sector fell 11% in 2020, more than double the 5% drop in employment in the sector nationally. Partly as a result, the number of people working in Michigan fell 9.2% in 2020, well above the 5.8% reduction in the national workforce in 2020. Still, the rate Michigan’s unemployment rate of 4.9% remains considerably lower than the US rate of 6.1%.

States are ranked by percent change in real GDP from 2019 to 2020. GDP and industry-specific real GDP data are from the BEA. Average annual employment and seasonally adjusted monthly unemployment rate data are each from the Bureau of Labor Statistics.

Rank State Change in GDP, 2020 (%) April 2021 unemployment (%) Change in non-agricultural employment, 2020 (%)
1 Hawaii -8.0 8.5 -9.4
2 Wyoming -7.0 5.4 -4.1
3 Oklahoma -6.1 4.3 -4.9
4 New York -5.9 8.2 -10.3
5 West Virginia -5.5 5.8 -6.6
6 Louisiana -5.5 7.3 -1.8
seven Vermont -5.4 2.9 -9.3
8 Michigan -5.4 4.9 -5.8
9 Alaska -4.9 6.7 -8.7
ten Tennessee -4.9 5.0 -17.5
11 New Hampshire -4.7 2.8 -6.7
12 Nevada -4.6 8.0 -10.4
13 Rhode Island -4.5 6.3 -8.8
14 Wisconsin -4.5 3.9 -6.3
15 Pennsylvania -4.4 7.4 1.9
16 Maine -4.1 4.8 -6.4
17 Connecticut -4.1 8.1 -7.7
18 New Jersey -4.1 7.5 -8.4
19 Caroline from the south -4.1 5.0 -5.1
20 Illinois -4.0 7.1 -7.1
21 Ohio -4.0 4.7 -6.1
22 Delaware -3.9 6.4 -6.0
23 Massachusetts -3.8 6.5 -9.0
24 Minnesota -3.7 4.1 -6.9
25 Kentucky -3.7 4.7 -5.6
26 Missouri -3.6 4.1 -4.8
27 North Dakota -3.5 4.2 -6.7
28 Texas -3.5 6.7 -4.3
29 New Mexico -3.1 8.2 -6.7
30 Indiana -3.1 3.9 -5.5
31 Montana -3.0 3.7 -3.1
32 Kansas -3.0 3.5 -4.6
33 Florida -2.9 4.8 -5.2
34 Oregon -2.8 6.0 -6.6
35 Mississippi -2.8 6.2 -4.3
36 California -2.8 8.3 -7.4
37 Alabama -2.7 3.6 -4.3
38 Maryland -2.6 6.2 -6.8
39 Arkansas -2.6 4.4 -3.0
40 Georgia -2.5 4.3 -4.6
41 North Carolina -2.5 5.0 -4.3
42 Virginia -2.5 4.7 -5.0
43 Iowa -2.3 3.8 -5.1
44 Nebraska -2.1 2.8 -3.6
45 South Dakota -1.7 2.8 -3.4
46 Colorado -1.5 6.4 -5.2
47 Idaho -1.1 3.1 -0.7
48 Arizona -0.9 6.7 -3.1
49 Washington -0.7 5.5 -5.3
50 Utah -0.1 2.8 -1.6