With the U.S. gaining 559,000 jobs in May, falling short of expert predictions, a recent rankings for the States Whose Unemployment Rates Are Bouncing Back Most, was released 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 five key metrics that compare unemployment rate statistics from the latest month for which data is available (May 2021) to key dates in 2019 and 2020.
Unemployment Recovery in California (1=Most Recovered, 25=Avg.):
- 88.89% Change in Unemployment (May 2021 vs May 2019)
- 1,489,611 unemployed people in May 2021 vs 788,616 in May 2019;
- 9th worst recovery in the U.S.
- 80.82% Change in Unemployment (May 2021 vs January 2020)
- 1,489,611 unemployed people in May 2021 vs 823,824 in January 2020;
- 10th worst recovery in the U.S.
- -47.97% Change in Unemployment (May 2021 vs May 2020)
- 1,489,611 unemployed people in May 2021 vs 2,863,209 in May 2020;
- 16th worst recovery in the U.S.
- 66.01% Change in Not Seasonally Adjusted Continued Claims (May 2021 vs May 2019)
- 572,296 continued claims in May 2021 vs 344,735 in May 2019;
- 7th best recovery in the U.S.
- 7.9% Unemployment Rate (May 2021)
- 3rd highest unemployment rate in the U.S.
To view the full report and your state’s rank, please visit: https://wallethub.com/edu/states-unemployment-rates/74907
Does the European travel ban hurt employment?
“The European travel ban does hurt employment, as a recent WalletHub study found that states stand to lose billions of dollars in tourism revenue due to the lack of European travelers this year,” said Jill Gonzalez, WalletHub analyst. “Without the inflow of money from these European tourists, the industries that depend on them won’t be able to hire as many employees. What’s strange about the European travel ban is that it’s not based on COVID-19 incidence rates – there are plenty of countries with higher incidence rates whose residents are allowed entry into the U.S.”
What tips would you give to the new class of college graduates who are now looking for jobs?
“College graduates who are now looking for jobs should start their search in sectors that were impacted most by the COVID-19 pandemic, such as entertainment, retail, dining, and travel. As states reopen, these sectors are experiencing some of the biggest job gains, so graduates will have the greatest chance of getting a job as quickly as possible. Once graduates have stable employment and can pay their bills, they can then start looking to switch to jobs that are more relevant to their degrees,” she “Another important tip for recent graduates is to get vaccinated, which could help their chances of getting hired by certain employers.”
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 4.8%, while it’s much higher, at 8.8%, 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,” she said. “The unemployment rate can fluctuate a lot by age, too; it’s only 4.8% for those ages 45 to 54, but 10.1% 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 278% from January 2020 to May 2021, compared to the average increase of 46%,” Gonzalez said. “Hawaii’s overall unemployment rate is 8.1%, compared to the average of 5.8%.”
Which state has experienced the biggest decrease in unemployment vs. the beginning of 2020?
“Nebraska has experienced the biggest decrease in unemployment because it has seen a 13% decrease in the number of unemployed persons from January 2020 to May 2021, compared to the average increase of 46%,” she said. “Nebraska’s overall unemployment rate is 2.6%, compared to the average of 5.8%.”