Arizona is one of the states most disproportionately affected by the current government shutdown, according to a new report from WalletHub.
According to the finance site, approximately 900,000 federal workers are furloughed during this shutdown, the 11th since 1976. Another 700,000 continue to work without pay.
Nationwide, the shutdown costs the country $400 million every day. But some states — particularly those with large shares of government employees and contractors — are feeling the brunt of that cost more than others.
“The latest government shutdown makes life stressful for people across the U.S., but places like D.C. and Hawaii, where a high percentage of residents work directly for the government or have government contracts, are getting hit the hardest,” said WalletHub analyst Chip Lupo. “Plus, states with real estate-dependent economies are suffering from federal delays in mortgage processing, and states with a lot of national parks may hurt their tourism and revenue by not being able to offer certain park services.”
Washington, D.C., is most affected: The nation’s capital ties Maryland and Hawaii for the highest share of federal jobs (over a quarter of all jobs in D.C. are government-related) and federal contract spending (D.C. spends $50,000 per capita), but it also has a high percentage of families who receive Supplemental Nutrition Assistance Program (SNAP) benefits and above-average access to national parks.
Conversely, the least affected state is Minnesota: The state has the third-lowest share of federal jobs and the second-lowest federal contract spending per capita.
Arizona ranks No. 10, making it one of the most affected states in the country. Over 23% of its gross state product comes from real estate — the third-highest percentage of any state — so if the shutdown puts a damper on the real estate market, it will likely also hurt the state’s economy as a whole. Arizona will also suffer from a tourism hit as its above-average quantity of national parks closes amid the shutdown.
Based on WalletHub’s analysis, blue states — defined as those who voted Democrat in the 2024 election — are affected more than red states, with an average ranking of 24.5 for blue states and 26.97 for red states.