The U.S. economy reported its worst quarterly decline in modern history during the COVID-19 pandemic, with gross domestic product shrinking at an annual rate of 31.4% in the second quarter. The economy bounced back in the third quarter, but efforts to contain the virus's spread throughout 2020 still resulted in a 3.5% annual economic contraction in the United States.

Arriving on the heels of a historic period of growth, COVID-19 brought about a decline in gross domestic product in every state in the country. However, no two state economies are alike, and partially as a result, some states were hit far harder than others.

Pennsylvania's economy contracted by nearly $32 billion in 2020, the fourth largest monetary drop in output of any state. However, Pennsylvania's economy is sixth largest in the country, and its GDP decline totalled 4.4%, the 15th largest decline among states.

Modest growths in sectors like utilities and finance, insurance, and real estate were not enough to counterbalance steep declines elsewhere in the economy. For example, the state's arts, entertainment, recreation, accommodation, and food services sector contracted by 30.2% in 2020, accounting for a 1.0 percentage point net economic decline.

States are ranked based on the percentage change in real GDP from 2019 to 2020. Data on GDP and industry-specific real GDP came from the BEA. Data on average annual employment and the seasonally adjusted monthly unemployment rate each came from the Bureau of Labor Statistics.

RankStateChange in GDP, 2020 (%)April 2021 unemployment (%)Change in nonfarm employment, 2020 (%)
1Hawaii-8.08.5-9.4
2Wyoming-7.05.4-4.1
3Oklahoma-6.14.3-4.9
4New York-5.98.2-10.3
5West Virginia-5.55.8-6.6
6Louisiana-5.57.3-1.8
7Vermont-5.42.9-9.3
8Michigan-5.44.9-5.8
9Alaska-4.96.7-8.7
10Tennessee-4.95.0-17.5
11New Hampshire-4.72.8-6.7
12Nevada-4.68.0-10.4
13Rhode Island-4.56.3-8.8
14Wisconsin-4.53.9-6.3
15Pennsylvania-4.47.41.9
16Maine-4.14.8-6.4
17Connecticut-4.18.1-7.7
18New Jersey-4.17.5-8.4
19South Carolina-4.15.0-5.1
20Illinois-4.07.1-7.1
21Ohio-4.04.7-6.1
22Delaware-3.96.4-6.0
23Massachusetts-3.86.5-9.0
24Minnesota-3.74.1-6.9
25Kentucky-3.74.7-5.6
26Missouri-3.64.1-4.8
27North Dakota-3.54.2-6.7
28Texas-3.56.7-4.3
29New Mexico-3.18.2-6.7
30Indiana-3.13.9-5.5
31Montana-3.03.7-3.1
32Kansas-3.03.5-4.6
33Florida-2.94.8-5.2
34Oregon-2.86.0-6.6
35Mississippi-2.86.2-4.3
36California-2.88.3-7.4
37Alabama-2.73.6-4.3
38Maryland-2.66.2-6.8
39Arkansas-2.64.4-3.0
40Georgia-2.54.3-4.6
41North Carolina-2.55.0-4.3
42Virginia-2.54.7-5.0
43Iowa-2.33.8-5.1
44Nebraska-2.12.8-3.6
45South Dakota-1.72.8-3.4
46Colorado-1.56.4-5.2
47Idaho-1.13.1-0.7
48Arizona-0.96.7-3.1
49Washington-0.75.5-5.3
50Utah-0.12.8-1.6