KC economy quickly rebounds amid challenges

Thursday’s 2021 Economic Forecast presented in part by the Greater Kansas City Chamber of Commerce showed that although challenges remain for the area, the Kansas City economy has seen a better comeback from COVID-19 trials than expected.

Challenges that remain a concern include a tight labor market, as well as looming inflation. The Kansas City region’s unemployment jumped to roughly 13.4 percent in April 2020, however, it recovered soon after, dropping to roughly 3.6 percent. This is near the pre-COVID low of 3.2 percent seen in late 2019.

Strong job growth is expected through 2022, with drop-off not showing until 2023, through 2025.

An organization involved in this year’s Economic Forecast included the Mid-America Regional Council. Frank Lenk, director of research services with Mid-America Regional Council, was among those who contributed. “The economy broke during the pandemic in a way similar to what you might see during a flash crash of the stock market. In two years, we’re basically back to where we were,” Lenk said. “This is such a different recession than the Great Recession – it took over five years to get back from the Great Recession.”

According to Lenk, Kansas City proved strong compared to other areas of the U.S.. Lenk noted Kansas City’s economy is accelerating faster than the national average, a trend he expects will continue.