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8.A. - Page 37 of 42 CNN Business has partnered with Moody's Analytics to create a "Back -to -Normal" Index for the national economy and each state. As can be seen in the chart below, the economy in California is currently operating at nearly 77 percent of where it was in early March, compared to the U.S. economy, which is currently operating at nearly 81 percent. Despite California's status as one of only a handful of states in which the housing sector did not soften in the early months of the pandemic, it still trails behind the nation in terms of recovery rate. This is likely due in part to the larger number of COVID-19 cases in California and associated reduction in economic activity. • United States • California 100% eo% E 60% z° 0 m 4lW� 2O% 0% Local California vs. United States Month 80.5% united S... 76.7% call —la The local economy exhibited signs of a healthy economy before it was thrust into a recession in March 2020, along with the rest of the nation and the world, due to the pandemic and associated government orders intended to slow the spread of COVID-19. The largest economic sectors affected were transportation, tourism and hospitality. By June 1, 2020, CalTrain reported a 97% drop in ridership; and Bay Area airports reported a 19% reduction in passenger departures for the full fiscal year 2019-2020. Redwood City Transit Occupancy Tax from hotel stays dropped by nearly 30% in fiscal year 2019-20 from the previous fiscal year (more details regarding this and other taxes are provided below). Given the health of the economy for the during the first half of fiscal year 2019-20, such annualized reductions indicate considerably greater drops in economic activity during the spring of 2020. Perhaps the most discouraging economic impact of the pandemic is unemployment. After falling to 1.6 percent in December 2019, Redwood City's unemployment rate abruptly leapt to a high of 8.9 percent in April 2020. Since that time, unemployment slowly decreased down to 4.3 percent in November 2020, but increased slightly to 5.1 percent in December 2020. Current reported unemployment rates are 5.3 percent for the City of Redwood City compared to 6.7 percent nationwide. It should be noted that the difference could be caused by the difference between the employed residents and employment in the City. Given the high cost of living, employed residents are more likely to be high wage workers and less likely to have lost their jobs while many of those employed in the City will live elsewhere and their lost jobs will not affect the City's unemployment rate. E 568