State of Working Maine 2022

In 2020, for the second time in a little more than a decade, the United States suffered one of the biggest economic downturns in its history. The arrival of the COVID-19 pandemic and the public health measures it required resulted in a record decline in economic activity, as well as widespread unemployment and temporary layoffs.1 Despite this economic shock, many indicators point to a near-full economic recovery just two years later, due in part to a robust fiscal response from the federal government.In 2020, for the second time in a little more than a decade, the United States suffered one of the biggest economic downturns in its history. The arrival of the COVID-19 pandemic and the public health measures it required resulted in a record decline in economic activity, as well as widespread unemployment and temporary layoffs. Despite this economic shock, many indicators point to a near-full economic recovery just two years later, due in part to a robust fiscal response from the federal government.

While the robust recovery from the COVID-19 recession is a relief for Maine workers, it hides continued underlying weaknesses in the economy. Some of these challenges were present before the pandemic, while others have emerged because of the pandemic’s disruption. Economic gains are undermined by: the highest rates of inflation in 40 years; too many Mainers being unable to participate fully in the economy; and numerous jobs lacking basic protections for workers. Some sectors, especially the public sector and those reliant on state funding, lack the resources to raise wages to hire and retain workers.

The upheaval of the pandemic revealed just how many “essential workers” are underpaid and poorly treated and rekindled a sense of worker solidarity and power. More than ever before, Maine workers recognize their own value — and want employers to recognize it too. Workers are increasingly expecting jobs that offer predictable schedules and the ability to take time off to care for family members or their own health needs. While wages and working conditions have improved during the past two years, there’s clearly more work to do.

To secure a sustainable recovery, which guarantees a thriving future for all Mainers, policymakers need to address these issues even as the immediate economic threats recede.

While the robust recovery from the COVID-19 recession is a relief for Maine workers, it hides continued underlying weaknesses in the economy. Some of these challenges were present before the pandemic, while others have emerged because of the pandemic’s disruption. Economic growth is undermined by: the highest rates of inflation in 40 years; too many Mainers being unable to participate fully in the economy; and numerous jobs lacking basic protections for workers. Some sectors, especially the public sector and those reliant on state funding, lack the resources to raise wages to hire and retain workers.activity, as well as widespread unemployment and temporary layoffs.1 Despite this economic shock, many indicators point to a near-full economic recovery just two years later, due in part tofiscal response from the federal government.