The U.S. reduced unemployment to record lows earlier this year, and it has only experienced slight fluctuations since then, even as inflation has cooled. The job market is still in good shape. However, new unemployment claims increased slightly week-over-week on October 23. There are currently 6.4 million Americans unemployed in total, though, and it’s essential to look at some key stats for the latest week to get the complete picture:
- 24 states and the District of Columbia had unemployment claims last week that were lower than in the previous week: Kentucky, Oregon, New York, Arkansas, Alabama, Hawaii, Maryland, Georgia, Tennessee, Florida, Nevada, Wyoming, New Hampshire, Arizona, Ohio, Indiana, Massachusetts, Colorado, West Virginia, South Carolina, Nebraska, Missouri, Louisiana and Texas.
- Surprisingly, 35 states – including Virginia, North Carolina, and Kentucky – and the District of Columbia had unemployment claims last week that were worse than the same week last year.
To identify where unemployment claims are decreasing the most, WalletHub compared the 50 states and the District of Columbia based on changes in unemployment claims for several key benchmark weeks. They also considered the number of claims per 100,000 people in the labor force.
The unemployment situation in New York is improving, with last week’s claims 13.76% lower than in the previous week and 14.49% lower than last year, according to WalletHub’s updated rankings for the States Where Unemployment Claims Are Decreasing the Most.
Unemployment Situation in New York (1= Best; 25=Avg.):
- Overall Rank for New York: 1st
- 3rd – Unemployment Claims Decrease vs. Previous Week
- 7th – Unemployment Claims Decrease vs. Same Week Last Year
- 1st – Cumulative Unemployment Claims in 2023 vs. Same Period Last Year
- 35th – Unemployment Claims per 100,000 People in the Labor Force
To help provide some guidance for Americans who have lost their jobs or are worried about losing them, WalletHub turned to a panel of experts to provide some additional insight:
How will the UAW strike impact other sectors of the job market?
“The UAW strike will have a negative impact on many other sectors of the job market,” said Cassandra Happe, WalletHub Analyst. “Economic consultants have estimated the total losses from this strike through the end of October 12 at over $7 billion, and that total will only grow as the strike continues. This kind of economic blow will weaken companies that are directly and indirectly connected to the automotive manufacturing process, ultimately leading to job losses in various sectors. Suppliers and shipping partners are feeling the pressure already, with their share of the estimated losses accounting for nearly 35% of the total. Luckily, the recent discussions between the union and automakers have led to positive results, signaling that the strike may end soon.”
How long are record-low unemployment figures expected to continue?
“Record low unemployment figures should not be expected to continue much longer,” says Cassandra Happe, WalletHub Analyst. “The Federal Reserve rate hikes have already started a slowing of inflation, which in turn will cause unemployment numbers to increase. The hikes, coupled with the chances of a recession in the next 12 months at over 70 percent, are two leading causes of why we will see record-low unemployment come to an end sooner rather than later.”
How do red states and blue states compare when it comes to new unemployment claims?
“With an average rank of 26 among the states with the biggest decreases in unemployment claims, red states fared the same last week as blue states, which also rank 26 on average,” said Cassandra Happe, WalletHub Analyst. “The lower the number of the ranking, the bigger the decrease in the state’s new unemployment claims was.”
How has unemployment in the East South Central states – the division with the highest inflation growth in the past 12 months – been impacted?
Among the East South Central states, Kentucky’s unemployment claims have experienced the biggest decrease in the U.S. For the week of October 23, Kentucky had 1,904 new unemployment claims, a 20% decrease from the previous week. On the other hand, unemployment claims in Mississippi have experienced a 15% increase for the same period.
