Updated WalletHub Study
With inflation remaining high and the U.S. gaining 236,000 jobs in March, fewer than in the previous month, WalletHub today released updated rankings for its report on Changes in the Unemployment Rate by State, along with a WalletHub Q&A.In order to take stock of how unemployment rates are changing throughout the U.S., 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 (March 2023) to key dates in 2023, 2022, 2020 and 2019.Below, you can see highlights from the report, along with a WalletHub Q&A.
| Best Change in Unemployment | Worst Change in Unemployment |
| 1. Nebraska | 42. Michigan |
| 2. South Dakota | 43. Illinois |
| 3. Montana | 44. Hawaii |
| 4. Wisconsin | 45. Texas |
| 5. Maryland | 46. Delaware |
| 6. North Dakota | 47. California |
| 7. Maine | 48. Washington |
| 8. Missouri | 49. Oregon |
| 9. Alabama | 50. District of Columbia |
| 10. Florida | 51. Nevada |
To view the full report and your state’s rank, please visit: https://wallethub.com/edu/states-unemployment-rates/74907WalletHub Q&AHow is artificial intelligence impacting unemployment?“AI is impacting unemployment in various ways. On the one hand, AI is creating new jobs in fields such as data analysis, machine learning, and programming. On the other hand, AI is also causing job displacement as many tasks that were once performed by humans are now being automated,” said Jill Gonzalez, WalletHub Analyst. “Certain jobs in fields like journalism, higher education, graphic and software design are already at risk of AI replacement, and could lead to higher unemployment sooner rather than later.”How do the recent banking collapses affect unemployment?“The recent banking collapses can affect unemployment in a couple of ways. When a bank collapses, it can lead to a reduction in the availability of credit. As a result, businesses may cut back on their hiring, leading to an increase in unemployment,” said Jill Gonzalez, WalletHub Analyst. “Banking collapses can also lead to a loss of confidence in the economy, which can have a negative impact on consumer spending. A reduction in demand for goods and services might follow, which can in turn lead to a reduction in hiring.”What are unemployment predictions for 2023?“The U.S. economy is expected to grow very little in 2023. This would lead to a jump in unemployment to as high as 4.6 percent, according to the Federal Reserve. Both of these things would be signs of the Fed continuing to try and get a handle on inflation,” said Jill Gonzalez, WalletHub Analyst. “If this ‘worst-case scenario’ comes true, it could mean that millions of people who now have jobs could wind up unemployed.”How does the threat of labor strikes affect the economy?“The threat of labor strikes might have an interesting effect on the economy. With increasing support for unions, workers now are more likely to earn better pay and workplace benefits. This could lead to a reduction in things like stagnant wage growth and poor job quality for workers,” said Jill Gonzalez, WalletHub Analyst. “However, improved working conditions might come at a cost to the consumer, leading to overall economic slowdown. Strikes may also make inflation even worse, as the supply lines will get further disturbed.”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 3.4%, while it’s much higher, at 5.1%, 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 2.4% for those ages 45 to 54, but 6.5% 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 previous month?“The District of Columbia has experienced the biggest increase in unemployment because the number of unemployed persons jumped by 4% from February 2023 to March 2023, compared to the average decrease of 2.8%,” said Jill Gonzalez, WalletHub Analyst. “The District of Columbia’s overall unemployment rate is 4.8%, compared to the average of 3.5%.” Which state has experienced the biggest decrease in unemployment vs. the previous month?“New Hampshire has experienced the biggest decrease in unemployment because it has seen a 9% decrease in the number of unemployed persons from February 2023 to March 2023, compared to the average decrease of 2.8%,” said Jill Gonzalez, WalletHub Analyst. “New Hampshire’s overall unemployment rate is 2.4%, compared to the average of 3.5%.”
