Rhode Island Ranked 2nd Most Economically Exposed State to Coronavirus Crisis
GoLocalProv Business Team
Rhode Island Ranked 2nd Most Economically Exposed State to Coronavirus Crisis
"Some states are better positioned economically to deal with the coronavirus pandemic than others. To find out the states whose economies are most exposed to COVID-19, WalletHub compared the 50 states and the District of Columbia across 10 unique metrics. Our data set ranges from share of employment from small businesses to share of workers with access to paid sick leave and increase in unemployment insurance claims," writes WalletHub.
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Rhode Island's newest unemployment and temporary disability insurance numbers are expected Tuesday. The total numbers could be approaching 100,000.
RI ranks second to only Louisianna.
The least vulnerable is Georgia according to the report.
"Coronavirus isn’t just a danger to Americans’ health. It’s also a menace to our wallets. It’s led to the closing of scores of non-essential events and businesses, hurting the livelihood of many people. The U.S. stock market has lost over 20 percent of its value, and the U.S. government was forced to pass a $2 trillion stimulus package," writes WalletHub.
Methodology
In order to identify the states whose economies are most exposed to coronavirus, WalletHub compared the 50 states and the District of Columbia across two key dimensions, “High Impact Industries & Workforce” and “Resources for Businesses to Cope Better with the Crisis.”
We evaluated those dimensions using 10 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest value.
We then determined each state and the District’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
High Impact Industries & Workforce – Total Points: 70
GDP Generated by High-Risk Industries as Share of Total State GDP: Double Weight (~20.00 Points)
Note: This composite metric includes:
Accommodation and Food Services: Double Weight
Arts, Entertainment, and Recreation: Double Weight
Retail Trade: Full Weight
Mining, Quarrying, and Oil and Gas Extraction: Full Weight
Educational Services: Half Weight
Real Estate, Rental and Leasing: Full Weight
Other Services, Except Government and Government Enterprises: Full Weight
Share of Employment from Highly Impacted Industries: Double Weight (~20.00 Points)
Note: This composite metric includes:
Accommodation and Food Services: Double Weight
Arts, Entertainment and Recreation: Double Weight
Advertising, Public Relations and Related Services: Full Weight
Retail Trade: Full Weight
Transportation: Double Weight
Oil and Gas Extraction: Full Weight
Educational Services: Half Weight
Health Care and Social Assistance: Full Weight
Real Estate, Rental and Leasing: Full Weight
Employment Services: Full Weight
Other Services, Except Public Administration: Full Weight
Increase in Number of Unemployment Insurance Initial Claims (2020 vs. 2019 – 12th week): Double Weight (~20.00 Points)
Share of Employment from Small Businesses: Full Weight (~10.00 Points)
Resources for Businesses to Cope Better with the Crisis – Total Points: 30
States Prepared for Digital Economy Ranking: Full Weight (~3.00 Points)
Note: The Digital States Survey, conducted by the Center for Digital Government, evaluates states’ use of technology to improve service delivery, increase capacity, streamline operations and reach policy goals. It assigns each state a grade based on quantifiable results.
Share of Workers Working from Home: Double Weight (~6.00 Points)
Work from Home Infrastructure: Full Weight (~3.00 Points)
Note: This composite metric measures both the average internet speed and the access to communication infrastructure by state.
Share of Workers with Access to Paid Sick Leave: Double Weight (~6.00 Points)
Note: Even with paid-time-off policies in place, workers may not be able, or may find it hard, to access medical care during the Coronavirus pandemic.
State Rainy Day Funds as Share of State Expenditures: Double Weight (~6.00 Points)
State Fiscal Condition Index: Double Weight (~6.00 Points)
Note: This metric is based on the George Mason University Mercatus Center’s state fiscal rankings, particularly the State Fiscal Condition Index, which refers to the sum of cash, budget, long-run, service-level and trust-fund solvency indices for each state.