Report: State’s economic recovery from COVID-19 has slowed
BISMARCK, N.D. (AP) — A new quarterly report from North Dakota State University says the state’s economic recovery from the coronavirus pandemic has slowed a bit.
The outlook predicts declines in the gross state product which is the measurement of the state’s output, labor force participation and total wages and salaries.
“The overall economic outlook for the state had been improving amidst the recovery from the COVID-19 pandemic, but the most recent data shows a state economy that is at risk of declining economic growth and a shrinking labor force,” said NDSU economics professor Jeremy Jackson. He is the director of the Center for the Study of Public Choice and Private Enterprise.
Total wages and salaries are expected to hold steady with a slight decline in the third quarter of this year, the Bismarck Tribune reported. The labor force is predicted to decline in the third quarter with that trend continuing into next year.
The unemployment rate is projected to have a slight increase in the third quarter and then return to its declining trend.
North Dakota’s gross state product grew 1.8% in the first quarter of 2021, up from 1.3% in the previous quarter, but gross state product is forecast to decline heading into 2022. Despite the forecast decline, the model predicts relative stability in total tax collections.