Economic News - October 2020
October 28 2020Covid-19 Economic Impact on Solano Economy
As we expected a f
ew months ago, the economy has opened to a degree, nearly half of the lost jobs from April have returned. However, without resolution or improvement in the region’s pandemic condition, growth will likely be stunted.
Unemployment rates have dipped below double figures in five of seven cities in Solano and in the County as a whole. Change in the County unemployment rate was minimal since August as the growth in employment was nearly equalled by the growth of the labor force.
Note: Employment rate and calculated unemployment rate are estimates of the activities of residents of Solano County regardless of place of work. Looking at jobs within Solano County lets us see how business activities are starting to resume within our borders.
The graph above shows three pieces of information: in grey, the loss of employment at the considered peak of job loss, April of 2020 (other than in the Government sector that peaked in July); in blue the recovery of jobs through September; and orange, employment change during the last recorded month.
It is clear to see in this graph that areas recovery have primarily been in Government, as public schools start to reopen, Leisure & Hospitality with the reopening of restaurants and greater flexibility of food service, Trade, Transportation & Utilities, with the opening of non-essential retail, and construction, that has actually surpassed pre-Covid-19 numbers.
Similar to other locations in the State and U.S., job growth is more of a leaning “L” than a “V”, however, jobs are being returned to the economy at a slow, but steady pace. Of the estimated 21,200 non-farm jobs lost March and April, roughly 8,600 have returned.
The Fall and Winter months are expected to bring less of a likelihood of improving Covid-19 conditions as the community continues to implement measures to reduce the likelihood of virus spread as it has done, and infection rates remain stable and in the current or lower risk tier, we should expect continued gradual reinvigoration.
The Solano EDC is a private non-profit organization created to improve the economic health of Solano County. Solano Economic Resource Center (SERC) is a division of the EDC and provides economic research and marketing services for organizational partners, investors, and local jurisdictions in Solano and beyond. For inquiries please contact Robert Burris at robert@solanoedc.org.