Unemployment claims in the U.S. reflect the number of people applying for benefits after losing their jobs, serving as a key measure of economic health. In April 2024, the U.S. spent $3.19 billion on unemployment benefits.
The Department of Labor‘s (DOL’s) weekly report highlighted initial claims across all 50 states. Plus, an AI productivity platform analyzed the data from April 13 to April 20, 2024, ranking states by unemployment claims per 100,000 residents. Daniel Li, co-founder and CEO of Plus, noted that unemployment is a nationwide issue, with no single region dominating economic outcomes.
According to a report from Plus, here are the top five states where residents claim the most unemployment benefits.
New Jersey
New Jersey’s high cost of living means job losses can be more financially devastating. These factors are pushing more individuals to file for unemployment benefits. In the latest report, around 2504 per 100,000 unemployment claims were filed. The total number of eligible workers in the state is 4,147,212, of which 103,861 people filed for the benefit. This equates to 2.5% of the working population.
California
As the second placeholder for high unemployment benefits, California saw 2312 claims per 100,000 potential workers. Of the total working population of 17,756,991, around 410,557 people are currently unemployed and have filed for benefits, which equates to 2.31% of the eligible workforce. California has a large population of gig workers and freelancers who may not always have stable employment, leading to higher claims during economic downturns.
Rhode Island
Rhode Island is one of the smallest states in terms of both area and population. Due to the instability in the economy, the state has a higher unemployment rate of 4.3%. Thus, it is understandable why 1906 claims per 100,000 workers were made in the state, making up 1.91% of the total population. There are 475,226 eligible workers, and 9,059 people filed for unemployment insurance claims in the said week.
Illinois
Illinois has consistently seen a poor job growth scenario and stands as the fourth-worst state, with a soaring unemployment rate of 4.7%. The unemployment benefit claims rate in the state is 1852 per 100,000. The eligible working population of the state is 5,918,407 workers. Unfortunately, 109,632 people have to survive on unemployment claims, which equates to 1.85% of the total population.
Minnesota
Minnesota has a diverse population comprising various ethnic communities, including Blacks, Hispanics, Whites, Asians, and Native Americans. Overall, Minnesota struggles with higher unemployment rates, with Aboriginal communities facing the highest rate at 12.9%.
According to the DOL’s reports, 52,395 out of 2,839,401 eligible working people claim unemployment benefits. So, the state’s unemployment benefits claim rate is 1845 per 100,000, equating to 1.85% of the working population.
As per the study by Plus, the following states have the least number of people claiming unemployment benefits.
Kansas
Even though Kansas’s unemployment rate increased slightly by 0.2% from May 2024 to June 2024, the state has an overall stable economy. The state has a total working population of 1,385,977, but only 4,511 people (0.33%) file for unemployment benefits. The rate of unemployment benefits claims is only 325 claims per 100,000 people, making it the lowest.
Florida
Tourism, hospitality, and real estate largely drive Florida’s economy. The unemployment rate in the state has consistently decreased over the years. Moreover, Florida has a relatively low unemployment benefits system, with shorter benefit durations and lower weekly payments, which may deter some from applying. The rate of benefits claims for unemployment is 368 per 100,000 (0.37% of the entire population). Only 34,818 people out of the total 9,451,269 eligible workers claim unemployment benefits.
South Dakota
South Dakota has the lowest jobless rate of 2% in the entire country. This is possible mainly due to its strong agricultural and manufacturing sectors and low cost of living, which helps maintain job stability. Thus, it is natural that the state’s unemployment benefits claim rate is as low as 387 per 100,000 people. The eligible working population of the state stands at 438,806, but only 1,700 unemployment insurance claims were made in the said week, tallying up to 0.39% of the population.
Virginia
Virginia has a highly educated workforce, which contributes to its lower unemployment rate. Only 2.7% of the entire population is jobless which makes the unemployment rate well below the national average. The presence of federal government agencies and military installations provides stable employment for many residents. The rate of unemployment benefits over here is 405 per 100,000 people. There are 5,918,407 residents in the state eligible for jobs, yet the state experienced 109,632 unemployment claims which is about 0.41% of its total population.
North Carolina
North Carolina has a relatively flexible labor market, with a mix of traditional and gig economy jobs that help absorb job losses. The state also has a moderate unemployment benefits system, which is less generous than others, potentially leading to fewer claims. The rate of claims in North Carolina is 409 per 100,000 people. Only 15,254 claims were made from a total of 3,762,973 potential workers, which equates to 0.41% of the population.