A still-roaring national economy grew at an unexpectedly robust 5.2 percent annual rate in the third quarter of this year, but early indicators show a more mixed picture for many states heading into the holidays.
The preliminary unemployment rate rose in 38 states and economic output slowed in 32 states in October, according to a Stateline analysis of preliminary federal economic data. Yet states where the economy is still humming — such as Arizona, Florida, North Carolina, Texas and Virginia — have added hundreds of thousands of jobs since 2020 and are helping to keep national output strong.
Economists note that the uptick in the jobless rate may be the result of long-inactive workers seeking jobs; those job-searchers are included in the unemployment rate.
Most economists surveyed by Stateline said the states with elevated unemployment rates and lagging production were experiencing growing pains as they continue to recover from the pandemic. A modest slowdown might even be a good thing if it cools interest rates and inflation, they said.