The U.S. has reduced unemployment from record highs during the COVID-19 pandemic back to historic lows. Now, however, high inflation and the looming threat of a recession could cause unemployment claims to spike once more. In fact, the job market has faltered recently, with new unemployment claims increasing by 5.7% week-over-week on April 24. There are currently 5.8 million Americans unemployed in total, and it’s important to look at some key stats for the latest week to get the full picture:
- While there was an increase in weekly claims nationally, 16 states – including Indiana, New York, and Delaware – and the District of Columbia had unemployment claims last week that were better than the same week last year. Hawaii and New Hampshire recorded no change.
- The following states had unemployment claims last week that were higher than in the previous week: North Carolina, North Dakota, New Mexico, Missouri, Oregon, Nevada, Indiana, Hawaii, California, Florida, Wisconsin, Pennsylvania, Minnesota, Massachusetts, South Dakota, Iowa, Oklahoma, Colorado, Alaska, Virginia, New Hampshire, Kentucky and the District of Columbia.
- The following states had unemployment claims last week that were higher than in the same week pre-pandemic (2019): Nebraska, Tennessee, Alabama, South Dakota, California, North Carolina, Idaho, Texas, Illinois, Oregon, Minnesota, Georgia, Virginia, Indiana, Utah, Colorado, Kentucky, Massachusetts and the District of Columbia.
To identify where unemployment claims are increasing the most amid costly inflation, WalletHub compared the 50 states and the District of Columbia based on changes in unemployment claims for several key benchmark weeks. We also considered the number of claims per people in the labor force.
Main Findings
States with Biggest Increases in Unemployment Claims
| State | Increased Most Since Last Week* | Claims per 100,000 People in Labor Force (Rank)** |
|---|---|---|
| Kentucky | 1 | 50 |
| Massachusetts | 2 | 51 |
| New Hampshire | 3 | 29 |
| Colorado | 4 | 37 |
| Virginia | 5 | 8 |
| Alaska | 6 | 48 |
| Iowa | 7 | 32 |
| California | 8 | 49 |
| Oregon | 9 | 47 |
| Minnesota | 10 | 31 |
| District of Columbia | 11 | 30 |
| Pennsylvania | 12 | 44 |
| South Dakota | 13 | 1 |
| Nevada | 14 | 40 |
| Hawaii | 15 | 45 |
| Wisconsin | 16 | 38 |
| Idaho | 17 | 24 |
| Texas | 18 | 26 |
| Oklahoma | 19 | 11 |
| Indiana | 20 | 23 |
| Georgia | 21 | 34 |
| Arizona | 22 | 35 |
| North Carolina | 23 | 7 |
| Utah | 24 | 18 |
| Vermont | 25 | 46 |
| Kansas | 26 | 19 |
| Florida | 27 | 4 |
| Missouri | 28 | 13 |
| Washington | 29 | 33 |
| Tennessee | 30 | 9 |
| New Mexico | 31 | 10 |
| Nebraska | 32 | 3 |
| Alabama | 33 | 22 |
| New Jersey | 34 | 43 |
| West Virginia | 35 | 16 |
| Louisiana | 36 | 14 |
| Connecticut | 37 | 42 |
| North Dakota | 38 | 6 |
| Illinois | 39 | 39 |
| Rhode Island | 40 | 36 |
| Michigan | 41 | 27 |
| Montana | 42 | 28 |
| Ohio | 43 | 21 |
| South Carolina | 44 | 15 |
| Mississippi | 45 | 12 |
| Maine | 46 | 20 |
| Maryland | 47 | 5 |
| Arkansas | 48 | 17 |
| Wyoming | 49 | 25 |
| New York | 50 | 41 |
| Delaware | 51 | 2 |
*Rank 1 = Biggest Increase
**Rank 1 = Most
Detailed Findings
| State | Change in Unemployment Claims (Latest Week vs. Previous Week)* | Change in Unemployment Claims (Latest Week vs Same Week Pre-Pandemic)** | Change in Unemployment Claims (Latest Week vs Same Week of 2022)*** | Unemployment Claims per 100,000 People in the Labor Force |
|---|---|---|---|---|
| Kentucky | 368.74% | 171.79% | 48.54% | 228 |
| Massachusetts | 15.19% | 513.22% | 540.53% | 762 |
| New Hampshire | 90.84% | -13.09% | 0.00% | 99 |
| Colorado | 22.60% | 105.55% | 75.35% | 124 |
| Virginia | 55.55% | 38.65% | 47.98% | 62 |
| Alaska | 32.23% | -7.76% | -1.85% | 224 |
| Iowa | 22.30% | -5.81% | 56.36% | 109 |
| California | 3.80% | 9.13% | 8.29% | 226 |
| Oregon | 1.78% | 22.35% | 25.30% | 186 |
| Minnesota | 13.96% | 23.96% | 24.71% | 107 |
| District of Columbia | 34.77% | 3.56% | -45.81% | 104 |
| Pennsylvania | 11.95% | -19.37% | 14.09% | 147 |
| South Dakota | 18.26% | 7.94% | 33.33% | 28 |
| Nevada | 1.80% | -3.30% | 19.75% | 139 |
| Hawaii | 3.56% | -13.34% | 0.00% | 162 |
| Wisconsin | 7.63% | -18.93% | 6.82% | 129 |
| Idaho | -6.60% | 11.99% | 37.83% | 91 |
| Texas | -1.92% | 17.42% | 9.34% | 94 |
| Oklahoma | 22.56% | -31.89% | -38.75% | 71 |
| Indiana | 3.18% | 40.18% | -46.63% | 90 |
| Georgia | -19.79% | 34.96% | 35.50% | 113 |
| Arizona | -6.51% | -17.42% | 25.33% | 119 |
| North Carolina | 0.13% | 11.08% | 13.65% | 60 |
| Utah | -11.08% | 46.82% | 4.53% | 82 |
| Vermont | -26.18% | -14.93% | 63.01% | 163 |
| Kansas | -10.03% | -1.18% | 40.34% | 83 |
| Florida | 5.95% | -8.54% | 3.35% | 49 |
| Missouri | 1.72% | -1.04% | -11.03% | 76 |
| Washington | -9.26% | -15.13% | 20.17% | 111 |
| Tennessee | -5.82% | 3.80% | 12.28% | 65 |
| New Mexico | 0.61% | -7.81% | -9.95% | 69 |
| Nebraska | -1.94% | 1.61% | 5.43% | 48 |
| Alabama | -10.72% | 6.72% | 1.89% | 89 |
| New Jersey | -12.72% | -48.24% | 16.67% | 147 |
| West Virginia | -0.80% | -33.26% | 3.15% | 80 |
| Louisiana | -2.34% | -19.85% | -1.09% | 77 |
| Connecticut | -9.37% | -53.03% | 8.14% | 142 |
| North Dakota | 0.45% | -28.43% | 6.16% | 54 |
| Illinois | -23.26% | 19.75% | -11.29% | 136 |
| Rhode Island | -8.51% | -38.46% | -14.85% | 122 |
| Michigan | -8.90% | -0.09% | -38.23% | 96 |
| Montana | -10.14% | -34.81% | -0.53% | 97 |
| Ohio | -11.47% | -9.07% | -18.01% | 89 |
| South Carolina | -16.60% | -8.21% | 3.79% | 80 |
| Mississippi | -9.61% | -45.14% | 7.88% | 75 |
| Maine | -22.16% | -19.03% | 8.16% | 87 |
| Maryland | -15.15% | -32.07% | -3.96% | 54 |
| Arkansas | -24.95% | -14.96% | -12.61% | 82 |
| Wyoming | -30.83% | -3.50% | -12.10% | 92 |
| New York | -40.90% | -27.22% | -41.93% | 140 |
| Delaware | -31.71% | -80.26% | -39.62% | 45 |
*Refers to the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 17, 2023.
**Refers to the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 22, 2019.
***Refers to the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 25, 2022.
(Latest Week vs Previous Week)
- Biggest Increase*
- 1. Kentucky
- 2. New Hampshire
- 3. Virginia
- 4. District of Columbia
- 5. Alaska
- Smallest Increase*
- 47. Arkansas
- 48. Vermont
- 49. Wyoming
- 50. Delaware
- 51. New York
(Latest Week vs Same Week Pre-Pandemic)
- Biggest Increase**
- 1. Massachusetts
- 2. Kentucky
- 3. Colorado
- 4. Utah
- 5. Indiana
- Smallest Increase**
- 47. Rhode Island
- 48. Mississippi
- 49. New Jersey
- 50. Connecticut
- 51. Delaware
(Latest Week vs Same Week of 2022)
- Biggest Increase***
- 1. Massachusetts
- 2. Colorado
- 3. Vermont
- 4. Iowa
- 5. Kentucky
- Smallest Increase***
- 47. Oklahoma
- 48. Delaware
- 49. New York
- 50. District of Columbia
- 51. Indiana
- Least Claims per 100,000 People in Labor Force
- 1. Massachusetts
- 2. Kentucky
- 3. California
- 4. Alaska
- 5. Oregon
- Most Claims per 100,000 People in Labor Force
- 47. Maryland
- 48. Florida
- 49. Nebraska
- 50. Delaware
- 51. South Dakota
*Refers to the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 17, 2023
**Refers to the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 22, 2019.
***Refers to the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 25, 2022.
Blue States vs. Red States
Ask the Experts
To help guide Americans who have lost their jobs or are worried about losing them during a potential recession, WalletHub turned to a panel of experts to provide some additional insight. Click on the experts below to view their bios and responses to the following key questions:
- What can people do to prepare for a potential recession?
- Do you think the hiring dynamic is currently tilted in the employees’ favor?
- With inflation at a 40-year high, what is your advice for people looking to protect their finances?
- Given the current circumstances, what trends do you expect to see in terms of unemployment in the foreseeable future?
- What are your predictions for the job market as we move forward during 2023 (job gains, hiring confidence, quit rates etc.)?
Ask the Experts
Ph.D. – Laurence A. Bloom Professor of Economics, Department of Economics – Boston University
Read More
Ph.D. – Assistant Professor & Graduate Program Director, Department of Sociology – University of Colorado Denver
Read More
Ph.D. – Associate Professor, Department of Economics – Central Connecticut State University
Read More
Ph.D. – Professor of Economics – Rutgers, The State University of New Jersey
Read More
Professor of Economics – Iowa State University
Read More
Ph.D. – Professor of Economics – Wright State University
Read More
Methodology
In order to identify where unemployment claims are increasing the most, WalletHub compared the 50 states and the District of Columbia based on changes in unemployment insurance initial claims for several key weeks. We also considered the number of claims per people in the labor force. The metrics are listed below with their corresponding weights. We then used those metrics to rank-order the states.
- Change in Number of Unemployment Insurance Initial Claims in Latest Week vs. Previous Week: Triple Weight (~50.00 Points)
Note: This metric measures the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 17, 2023. - Change in Number of Unemployment Insurance Initial Claims in Latest Week vs. Same Week Pre-Pandemic: Full Weight (~16.67 Points)
Note: This metric measures the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 22, 2019. - Change in Number of Unemployment Insurance Initial Claims in Latest Week vs. Same Week of 2022: Full Weight (~16.67 Points)
Note: This metric measures the change in the number of unemployment insurance initial claims in the week of April 24, 2023 compared to the week of April 25, 2022. - Number of Unemployment Insurance Initial Claims per 100,000 People in Labor Force: Full Weight (~16.67 Points)
Sources: Data used to create this ranking were obtained from the U.S. Department of Labor.
