WalletHub Report Reveals States Where Unemployment Claims Are Decreasing the Most

Following record lows in unemployment earlier this year, the United States has maintained a relatively stable job market, despite fluctuations in inflation. However, recent data shows a slight uptick in new unemployment claims; 6.4 million Americans are currently unemployed. A new report from WalletHub is shedding light on the bigger picture. 

The report found that 24 states and the District of Columbia witnessed a decrease in unemployment claims for the week ending on October 23, 2023, compared to the previous week. This positive trend suggests that certain regions are successfully curbing new unemployment claims.

On the other hand, 35 states, including Virginia, North Carolina and Kentucky, experienced an increase in unemployment claims during the same week compared to the corresponding week in 2022. This indicates that, despite the overall stability, challenges persist in some parts of the country.

“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.”

WalletHub conducted a comprehensive analysis to identify where unemployment claims are decreasing the most. They considered changes in unemployment claims for specific benchmark weeks, as well as the number of claims per 100,000 people in the labor force. According to their findings, New York leads the pack in terms of decreasing unemployment claims, with a 13.76% reduction compared to the previous week and a 14.49% decrease compared to the same week in 2022. Massachusetts, Nevada, Indiana and Florida also make the list of states with significant improvements in their job markets.

Meanwhile, states like Montana, Alaska, Iowa and North Dakota face more significant challenges, with substantial increases in unemployment claims during the last week and compared to the same week in 2022.

As the job market continues to evolve, experts are divided on its future dynamics. Factors like the ongoing high inflation rate and changing economic conditions will play a pivotal role in shaping employment trends. Whether the current employee-hiring environment will persist and how individuals can safeguard their finances amidst rising costs remain critical questions.

Read the full report here.