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Economic Recovery

Only Six States Have Recovered All Jobs Lost to Covid-19

Covid-19-related lockdown measures have not been renewed in the U.S. recently and GDP growth has been in recovery mode. Yet, the effect of the pandemic on the U.S. economy is still lingering on elsewhere. As of December, only six states had reached pre-pandemic levels of employment. All six - Utah, Idaho, Texas, Montana, Georgia and Arizona - have retained population growth during the pandemic, however, in part explaining their quick recovery. lower cost of living and fewer coronavirus restrictions attracted companies and workers alike.

According to the report, only a third of all U.S. states is projected to reach pre-pandemic payroll numbers by mid-2022. A look at shows that these could be more states in the United States’ West, Midwest and South, which have the ability to attract employers and employees with the promise of a cheaper and less regulated environment.

, population growth during the pandemic also continued in South Dakota, Florida and the Carolinas, among others. These states were also coming within reach of closing the Covid-19 employment gap in December. The only growing states with a persisting Covid-19 employment gap were Maine, New Hampshire, Oklahoma and Nevada.

States with a bigger gap to pre-pandemic employment were more likely to be located in the Northeast and Great Lakes regions, while California and Hawaii – both states suffering high population loss – were also among them. Hawaii, where the blow Covid-19 dealt to tourism was acutely felt, as of December still had the biggest employment gap opposite February 2020. Nonfarm payrolls numbers were 12 percent lower. Next up was New York, where a 7 percent gap persisted, followed by 6 percent gaps in Alaska, Louisiana and Vermont. For the U.S. overall, the Covid-19 employment gap stood at -2.3 percent in December.

Description

This chart shows the change in nonfarm payrolls in between February 2020 and December 2021, by state.

U.S. monthly change in nonfarm payroll employment 2022-2026
Monthly change in nonfarm payroll employment in the U.S. 2026, by industry
Monthly change in the manufacturing sector employment in the U.S. 2025-2026
Premium statistics
Monthly change in private-sector employment in the U.S. 2024-2026
Premium statistics
U.S. monthly net change in nonfarm employment 2025, by state
United States: duration of recessions 1854-2026

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