Alabama’s economy has taken a slight hit due to the COVID-19 pandemic, but the state is already starting to recover.
According to a study done out of the University of Alabama, Alabama’s economy shrank by 3.4 percent in 2020 because of the pandemic.
Before the pandemic, the state was seeing economic growth. The economy grew by 2.8 percent in 2018, 2.4 percent in 2019, then things took a downturn in March.
During the month of August, Alabama gained 22,200 jobs, bringing the total number of jobs lost to 86,800 since August 2019.
A household survey also revealed that the seasonally adjusted number of unemployed workers went down from 176,556 in July to 127,186 in August.
A year ago, in August 2019, the number of unemployed Alabamians was 62,149.
The study shows nonfarm employment is expected to drop by about three percent this year.
Most of the jobs lost are in manufacturing, professional and business services, leisure and hospitality and other service sectors.
Some manufacturing industries are expected to continue to experience a net loss in jobs, primarily industries that are export-oriented and rely on inputs from abroad.
The researchers involved in the study say they are optimistic the state’s economy will be on its way to recovery by the first half of 2021.