Updated WalletHub Study

With the U.S. gaining 390,000 jobs in May, slightly less than in the previous month, WalletHub today released updated rankings for the States Whose Unemployment Rates Are Bouncing Back Most, along with accompanying videos and audio files, to illustrate which areas of the country have had the best recovery so far.

In order to identify the states whose unemployment rates are bouncing back most, WalletHub compared the 50 states and the District of Columbia based on six key metrics that compare unemployment rate statistics from the latest month for which data is available (May 2022) to key dates in 2019, 2020 and 2021.

Below, you can see highlights from the report, along with a WalletHub Q&A. 
 

To view the full report and your state’s rank, please visit: https://wallethub.com/edu/states-unemployment-rates/74907 

WalletHub Q&A

How will the Federal Reserve’s most recent interest rate decision affect unemployment?

“The Federal Reserve's most recent interest rate decision will affect unemployment negatively,” said Jill Gonzalez, WalletHub Analyst. “In fact, the Fed is hiking rates by 75 basis points and predicting three years of rising unemployment. After inflation rose by 8.6% in May, the highest annual rate since 1981, it seems that the Fed is prioritizing stabilizing prices rather than maintaining low unemployment.”

How might rising inflation impact unemployed people?

“Rising inflation has a direct impact on unemployed people. Finding a job right away is critical, as costs continue to increase and a recession looms in the horizon,” said WalletHub analyst, Jill Gonzalez. “The good news is that there are jobs out there for the taking. Jobs in logistics, dining and hospitality are very much in demand right now, so those fields might be good places to start.”

What qualities should unemployed people look for when choosing which businesses to apply to?

“The biggest thing that unemployed people should look for when choosing which businesses to apply to is compensation that’s appropriate for their field and skill level. Since there is currently an employment shortage, workers are in a great position to negotiate a worthwhile compensation package,” said Jill Gonzalez, WalletHub analyst. “Other desirable features are the ability to work from home at least part of the time, measures to prevent the spread of COVID-19, a positive and friendly workplace environment, and a short commute.”

Is there a big difference in the unemployment rate among various demographics?

“The unemployment rate does differ sharply among different demographics. The unemployment rate for white people is 3%, while it’s much higher, at 6%, for black people. The racial disparity is troubling, especially in the context of broader discussions of inequality that have taken place in the past year,” said Jill Gonzalez, WalletHub analyst. “The unemployment rate can fluctuate a lot by age, too; it’s only 2.2% for those ages 45 to 54, but 6.7% for people ages 20 to 24. It makes sense that people who have been in the workforce longer would have more job stability, but we should be concerned about the difficult conditions faced by young people.”

Which state has experienced the biggest increase in unemployment vs. the beginning of 2020?

“Hawaii has experienced the biggest increase in unemployment because the number of unemployed persons jumped by 98% from January 2020 to May 2022, compared to the average decrease of 3%,” said Jill Gonzalez, WalletHub analyst. “Hawaii’s overall unemployment rate is 4.2%, compared to the average of 3.6%.”

Which state has experienced the biggest decrease in unemployment vs. the beginning of 2020?

“Minnesota has experienced the biggest decrease in unemployment because it has seen a 48% decrease in the number of unemployed persons from January 2020 to May 2022, compared to the average decrease of 3%,” said Jill Gonzalez, WalletHub analyst. “Minnesota’s overall unemployment rate is 2%, compared to the average of 3.6%.”