Study Overview
The Southern California Association of Governments (SCAG) incorporated the REMI model into their analysis of the potential employment and taxable sales implications of the COVID-19 pandemic, with preliminary estimates showing a possible decrease in taxable sales of 26% to 38% over 2020-2021 and annual average unemployment rates of 19.3% in 2020 and 12.2% in 2021. Researchers developed assumptions of prospective direct shocks to output that specific industries are facing due to the outbreak of COVID-19 and used them as inputs into the REMI model to better evaluate some of the regional economic implications. This examination also considered select industry-specific output assumptions to industries such as oil, gas and petroleum; food and drink; retail and wholesale; tourism; and more. SCAG then concluded this preliminary assessment by outlining possible next steps to utilize as the pandemic progresses and more information becomes available.