State officials quickly pushed back against the recession risk outlook.
The grim picture of Delaware’s economy comes from a review of the state’s employment trends, housing starts, home prices and industrial production, indicators Moody’s studies in all states to identify economic progress four years after the end of the recession.
In Delaware, unemployment is 7.4%, and has remained stagnant for a year as the U.S. jobs market slowly improved. Delaware’s rate now matches the rate for the U.S. as a whole. A year ago, it was almost a full percentage point lower.
A spokesperson for the state told the newspaper that they are seeing the exact opposite, with “significant growth in the financial sector, including several announcements about financial institutions growing here, and Delaware has outpaced the nation over the past year in job gains.”
The review points out that several states have faced challenges since the country fell into recession, dealing with budget deficits and high unemployment rates.
Earlier this month, Moody’s upgraded the economies of Alabama, Illinois and Wisconsin from a “risk” of falling back into recession to “recovery.”
The opinions contained in this column are solely those of the writer.
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