The Unequal Economic Impact of COVID-19 in Maine

October 2021| By Michael Cauvel, Assistant Professor of Economics, University of Southern Maine

This report examines the economic impact of COVID-19 in Maine through the 2020 recession. The pandemic caused massive disruptions to the economy in Maine (as elsewhere). However, the economic impact was not equally distributed throughout the economy. Issues with housing affordability placed a greater burden on those who are not homeowners, while low-wage workers in the service sector, especially those in leisure and hospitality, bore the heaviest costs. As a result, counties with relatively more of these workers were more heavily affected. In contrast, some counties saw modest gains in 2020, and some industries thrived in the pandemic-era economy.

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