– Updated WalletHub Study

With the U.S. gaining 678,000 jobs in February, exceeding the previous month’s 481,000 jobs, 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 (February 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

Will the BA2 variant affect unemployment?

“The BA2 variant should not affect unemployment in the long term,” said WalletHub analyst, Jill Gonzalez. “2022 will most likely continue to be another year of job gains that might even surpass the pre-pandemic levels. The good news is that the BA2 variant seems to be much less severe than the previous strains and should peak soon. If that’s the case, unemployment rates should drop even more in the coming months.”

Will the free test disbursement from the federal government help with unemployment?

“The federal government’s plan to distribute free Covid tests is a good first step toward lowering unemployment rates, but it should be handled more like vaccine distribution to really have a lasting effect,” said WalletHub analyst, Jill Gonzalez. “The federal government should ensure a steady test supply, not a one-and-done handout of four tests per household. Workers will continue to get exposed, and will regularly need to home-test in order to safely return to work. The government still has not taken employees’ situation into account fully.”

How will state vaccine mandates affect unemployment?

“State vaccine mandates will affect unemployment because at least thousands of workers in each state could face the loss of their jobs and eligibility for unemployment benefits,” said Jill Gonzalez, WalletHub analyst. “That being said, it also has a huge effect on public health. In just the city of New York, 60 percent of those working for the Fire Department were vaccinated pre-mandate. Post-mandate, the vaccinated percentage is 94 percent. When extrapolated to the state level, this could mean that a lot of workers are keeping their jobs while also keeping even more people safe.”
 
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 3.7%, while it’s much higher, at 6.8%, 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 2.5% for those ages 45 to 54, but 7.5% 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 beginning of 2020?

“Hawaii has experienced the biggest increase in unemployment because the number of unemployed persons jumped by 102% from January 2020 to February 2022, compared to the average increase of 8%,” said Jill Gonzalez, WalletHub analyst. “Hawaii’s overall unemployment rate is 4.3%, compared to the average of 3.8%”

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

“Indiana has experienced the biggest decrease in unemployment because it has seen a 34% decrease in the number of unemployed persons from January 2020 to February 2022, compared to the average increase of 8%,” said Jill Gonzalez, WalletHub analyst. “Indiana’s overall unemployment rate is 2.3%, compared to the average of 3.8%.”