Hampton Roads seeks positives during crisis
The commonwealth is faring far better than many other states that have eschewed valuable and necessary scientific advice
The 21st annual State of the Region report examines how we have fared as a region in response to the COVID-19 pandemic. While projections for 2020 appeared bright at the beginning of the year, we are now facing the prospect of higher unemployment, lower incomes and a smaller regional economy at the end of 2020. Yes, there are challenges, but our choices today can invigorate growth in 2021and beyond.
First, the bad news. While Hampton Roads added about 65,000 jobs since the trough of the Great Recession, it shed more than 87,000 jobs in March and April of this year. Some of these jobs have returned, but when compared to February of this year, there were 45,500 fewer jobs at the end of August. Job losses were concentrated in the hospitality and tourism, retail trade, professional and business services, and health care and social assistance sectors. State and local governments froze hiring and expenditures. In some cases, they are laying off employees to balance their budgets in the face of declining revenues.
With higher unemployment, it should be no surprise that demands for help have increased throughout Hampton Roads. The percentage of the population in the region receiving SNAP (food stamps) benefits jumped from 9.9% prior to the pandemic to11.4% in July. While this may seem like a small increase, it meant that more than 25,500 of the region’s residents found themselves in need of public assistance.
As we write in the report, the Foodbank of Southeastern Virginia and the Eastern Shore and the Virginia Peninsula Foodbank have helped fill the gap. These nonprofit organizations are not only highly efficient, but they also provide a range of services aimed at reducing food insecurity in the region.
The bad news was not equally borne nationally or in the region. According to the U.S. Centers for Disease Control and Prevention, relative to the share of population, Blacks or African Americans and Hispanics were more likely to be infected, hospitalized and die from COVID-19. While Blacks or African Americans comprise approximately 30.7% of the population in Hampton Roads, they accounted for more than 58% of continuing unemployment claims in September. National data point to higher signs of anxiety and depression for Black or African American and Hispanic households relative to white and Asian households.
With the spikes in anxiety and depression have come increased demand for mental health services.
We examine youth mental health in Hampton Roads and find a shortage of practitioners in the region relative to need. Anecdotal reports suggest that more of the region’s youth are showing up at hospitals in crisis due to the social isolation, stress and anxiety associated with the pandemic. The construction of a new mental health facility by the Children’s Hospital of the Kings Daughters is timely and welcome news.
Not all the news is bad. The region has rebounded from the lows of employment and has reduced COVID-19 infections below the summer peak. The commonwealth is faring better than many other states that have eschewed scientific advice. Real estate prices continue to increase, thanks to low interest rates and constrained supply. The port has rebounded off its lows and should experience growth in the coming year, though competition for market share remains a challenge. The defense sector provides a “floor” for the impact of COVID-19, though questions remain whether, in an era when the federal government is running trillion-dollar deficits, large defense budgets can be sustained.
In crisis, there is opportunity. Yes, the region’s economy is dominated by the three pillars: defense, the port and tourism. Yet, new opportunities in renewable energy, cybersecurity and advanced manufacturing are there for the taking. Colleges and universities in Hampton Roads provide a steady flow of talent, and the task is to capture these graduates to invigorate growth. The region’s cities, counties and agencies are not only talking, but working together to forge a path forward.
While it remains to be seen whether these efforts are successful, it is a welcome sign and, just perhaps, a sign of things to come. The 2021State of the Region Report is available online at ceapodu.com.