America’s largest state has been under a stay-at-home order for more than two weeks, but a new study suggests the economic impact could be limited.
The study by WalletHub, a Washington, DC-based financial services firm, found California to be one of the three states that will face the least disruption from the coronavirus pandemic.
California stood out because of a relatively low share of industries at high risk for cutbacks and layoffs like manufacturing and oil production, and for benefits like paid sick leave and widespread Internet access to support working from home.
WalletHub analyzed data ranging from the share of employment in small businesses to the share of workers with access to paid sick leave and the increase in unemployment insurance claims.
George ranked first, California second and Alaska third as the states facing the least economic disruption. Louisiana, dependent on oil and gas production, came in last.
“This pandemic has hit a number of industries so hard that they are furloughing at least 90 percent 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,” explained WalletHub analyst Jill Gonzalez.