How Employment in US Metros Has Recovered - Or Not - Post-COVID

The story of employment loss and recovery across U.S. metro areas underscores the uneven geography of the COVID-19 economy. The resilience of local economies has since reshaped the post-pandemic landscape, revealing not only where recovery has taken root but also where it remains incomplete. 

Tracking Employment Losses

While the national labor market suffered an unprecedented collapse in both speed and depth during the COVID pandemic — with total payroll employment falling by an unprecedented 20.5 million in April 2020 — the effects varied significantly across U.S. metro areas. Nonfarm employment payrolls declined by anywhere from 5% to 35% across 393 metro areas.

Some metro areas experienced major setbacks tied to their dominant industries. Kahului-Wailuku, Hawaii, experienced the steepest job losses, with employment plummeting by 35%. This metro area’s deep dependence on tourism and hospitality, particularly in accommodation and food services, left it vulnerable to travel restrictions and widespread shutdown. Similarly, Atlantic City-Hammonton, New Jersey — a prime tourism destination — was devastated by pandemic-related closures, while employment in Elkhart-Goshen, Indiana — the heart of the U.S. RV manufacturing industry — plunged 34%

Other metros posted large numbers based on the size of their population. New York-Newark-Jersey City, New York-New Jersey, for example, shed nearly 2 million jobs, or about 20% of its pre-pandemic workforce, while Los Angeles–Long Beach–Anaheim, California, followed closely with a loss of 1.1 million jobs, or about 17% of its February 2020 level.

At the other end of the spectrum, Logan, UT-ID, recorded the mildest downturn, with a relatively modest 5% employment drop, reflecting a more resilient local economy.

How Economies Are Recovering

Despite the historic scale of these losses, the U.S. labor market rebounded faster than many anticipated. Within just 26 months, overall employment had fully recovered, surpassing its February 2020 level to reach 152.4 million by June 2022. Yet, as with the initial losses, the recovery varied widely across metro areas.

Lake Charles, Louisiana, remains the slowest to recover, with employment at only 87% of its February 2020 level. The region’s setbacks have been compounded by multiple disasters — COVID-19, followed by Hurricanes Laura and Delta in 2020 — that disrupted both infrastructure and labor markets. Kankakee, Illinois (92% recovered) and Weirton–Steubenville, West Virginia–Ohio (93% recovered) also lagged, highlighting how recovery can be delayed by structural and regional challenges.

On the other hand, as of August 2025, 300 metro areas have fully rebounded, led Wildwood–The Villages, Florida, at 127% of its February 2020 level and St. George, Utah, at 125%.

NAHB Senior Director of Forecasting & Analysis Jing Fu provides more details, including interactive maps, in this Eye on Housing post.