With inflation remaining high and the U.S. gaining 236,000 jobs in March, fewer than in the previous month, WalletHub has released updated rankings for its report on Changes in Unemployment Rate by State.
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.
Unemployment Change in California:
2.13 percent Change in Unemployment (March 2023 vs. February 2023)
859,631 unemployed people in March 2023 vs. 841,703 in February 2023; third worst change in the U.S.
2.69 percent Change in Unemployment (March 2023 vs. March 2022)
859,631 unemployed people in March 2023 vs. 837,088 in March 2022; 21st worst change in the U.S.
-19.22 percent Change in Unemployment (March 2023 vs. March 2020)
859,631 unemployed people in March 2023 vs. 1,064,166 in March 2020; 19th best change in the U.S.
5.99 percent Change in Unemployment (March 2023 vs. March 2019)
859,631 unemployed people in March 2023 vs. 811,043 in March 2019; 14th worst change in the U.S.
2.33 percent Change in Not Seasonally Adjusted Continued Claims (March 2023 vs. February 2023)
403,898 continued claims in March 2023 vs. 394,717 in February 2023; fourth worst change in the U.S.
4.4 percent Unemployment Rate (March 2023)
Seventh highest unemployment rate in the U.S.
To view the full report, visit: https://wallethub.com/edu/states-unemployment-rates/74907
WalletHub Q&A
With Analyst Jill Gonzalez
How 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. 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.
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. 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. 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. 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 percent, while it’s much higher, at 5.1 percent, 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. The unemployment rate can fluctuate a lot by age, too; it’s only 2.4 percent for those ages 45 to 54, but 6.5 percent 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.
