Unemployment claims are increasing in the United States despite the low unemployment rate. Global unrest and wars are the primary reasons for the slowdown in hiring, negatively impacting the country’s economy. While some states are doing exceptionally well, others are struggling to generate enough employment, leading to a rise in unemployment claims. WalletHub has published a list of such states after researching various factors. This study helps us understand the potential challenges some states may face.
Massachusetts
Massachusetts tops the list with the highest number of unemployment claims, experiencing over a 44 percent increase compared to the previous week. The state also saw the largest rise in initial unemployment insurance claims compared to the previous week and ranked sixth in claims per 100,000 people in the labor force.
Michigan
Michigan is the second state with the most unemployment claims and ranks first in claims per 100,000 people in the labor force. The state has seen a 37 percent hike in claims compared to last week. In 2023, the state was in fifth place in the change in the number of unemployment insurance Initial claims compared to the same period.
Missouri
The third on the list is Missouri, with an increase of over 116 percent in unemployment claims compared to last week. In 2023, the change in unemployment claims was over 19 percent for the same period. The state is also third in claims per 100,000 People in the labor force and ranks first in the Change in the Number of Unemployment Insurance Initial Claims.
Iowa
Iowa is the fourth state with the highest unemployment claims and ranks twelfth in claims per 100,000 People in the labor force. The government announced an increase in unemployment insurance wages on July 7, 2024, which may have contributed to the rising claims. There was an increase of over 11 percent in unemployment claims compared to last week, while it was 24 percent for the same period in 2023.
North Dakota
North Dakota ranks fifth for the highest number of unemployment claims and 44th in claims per 100,000 people in the labor force. The state has experienced the most significant increase in the change in the number of unemployment insurance initial claims, reporting 57 unemployment claims per 100,000 people in the labor force.
Minnesota
Minnesota is sixth place on the list, with over a 16 percent increase in unemployment claims compared to last week. It ranks 16th in claims per 100,000 People in the labor force, while for the same period in 2023, the increase was over 12 percent. Minnesota has recorded 119 unemployment claims per 100,000 people in the labor force.
Nevada
Nevada has a high unemployment rate of over 5 percent, which may be responsible for the rise in unemployment claims. The state ranks fourth in claims per 100,000 people in the labor force and has seen the highest number of initial unemployment insurance claims, with 177 individuals filing unemployment claims per 100,000 people in the labor force.
Kansas
Kansas’s unemployment rate has increased to 3.1 percent compared to 2.9 percent last month. Job cuts and slow hiring in several sectors may contribute to this, leading to high unemployment claims. The state recorded 79 unemployment claims per 100,000 people in the labor force. There has been over a 17 percent increase in unemployment claims compared to last week, while for the same period in 2023, it was over 21 percent.
Colorado
The ninth state with the highest unemployment claims is Colorado, which is in 27th place in the claims per 100,000 people in the labor force. With an unemployment rate of 3.8 percent, the state experienced 86 unemployment claims filed per 100,000 people in the labor force. It has also seen the highest increase in the Number of Unemployment Insurance Initial Claims.
Virginia
Virginia plans to lay off 10,000 employees at underutilized facilities in the next financial year, leading to economic unrest and a high unemployment rate. The state is in 10th position with the highest unemployment claims, which could increase. The change in the number of unemployment insurance initial claims is also high in the state compared to the previous week, with 59 individuals filling the unemployment claims per 100,000 people in the labor force.
Oregon
Oregon ranks 5th in unemployment claims per 100,000 people in the labor force, with 175 individuals filing unemployment claims. Two major companies in the state, Nike and Intel, are set to lay off thousands of employees, leading to an increase in unemployment claims. The state experienced over a 14 percent change in unemployment claims compared to the previous week.
New Jersey
New Jersey’s unemployment rate is 4.8 percent, and it is likely to increase as companies in the state plan to shed over 4000 jobs. This shift is increasing unemployment claims, making New Jersey the seventh state with the highest claims per 100,000 people in the labor force. With 177 people filling the unemployment claims per 100,000, it has become the highest state with unemployment claims.
California
California ranks second in unemployment claims per 100,000 people in the labor force, with 214 individuals filing unemployment claims. It is also second in the number of unemployment insurance initial claims per 100,000 people in the labor force. The unemployment rate in California is 5.2 percent, which has increased from 4.6 percent over the last year, leading to fewer jobs and more unemployment claims.
Pennsylvania
Pennsylvania has experienced increased unemployment claims due to several factors, including a rising unemployment rate, slow hiring, and layoffs. The state is 10th in claims per 100,000 people in the labor force, with 156 people filing unemployment claims per 100,000.
Washington
Washington ranks 15th and has witnessed the largest increase in unemployment claims compared to the previous week. With 107 people filing unemployment claims, it becomes the 20th state with the highest number of unemployment claims per 100,000 people in the labor force. The state has experienced over a 10 percent increase in unemployment claims compared to the previous week, while for the same period in 2023, it was over 5 percent.