New unemployment claims for the final week of April in California were 3.80 percent higher than in the previous week, amid high inflation and the threat of a recession. That’s according to WalletHub’s updated rankings for the States Where Unemployment Claims Are Increasing the Most.

Key Stats

Weekly unemployment claims in California increased by 3.80 percent compared to the previous week. This was the 15th biggest increase in the U.S.

Weekly unemployment claims in California were 8.29 percent higher than in the same week last year. This was the 21st biggest increase in the U.S.

Weekly unemployment claims in the state were 9.13 percent higher than in the same week pre-pandemic (2019). This was the 14th biggest increase in the U.S.

Unemployment Insurance Initial Claims per 100,000 People in Labor Force in California: 226

To view the full report, visit: https://wallethub.com/edu/states-unemployment-claims/72730

WalletHub Q&A

With Analyst Jill Gonzalez

With Mother’s Day coming up, what can be said about working moms returning to work since the pandemic?

It’s good to see that working moms are once again thriving since the pandemic. Women’s employment has now recovered to pre-pandemic levels, with their overall employment at 99.9 percent. Women with children under 18 at home saw particular improvement in employment over the course of 2022, thanks to widespread reopening of schools, expanded child care funding and plenty of job opportunities.

What job types are experiencing the highest levels of unemployment and why?

Certain job types are still seeing higher levels of unemployment currently. For instance, construction jobs have very high unemployment numbers right now due to building activity slowdown, with higher interest rates lowering demand for new individual housing. Farming, fishing, and forestry jobs are also seeing high unemployment, which has more to do with technological advances and less about the current economy or pandemic recovery.

Despite recent layoffs, unemployment is still low. Why is that?

The number of unemployment claims has actually been dropping. That’s because there are still many more jobs than unemployed people, at about two openings per jobless person, according to the BLS (Bureau of Labor Statistics). It’s important to remember that most recent layoffs have been in the tech sector. Tech companies are more sensitive to rising interest rates because of how they’re funded, so it’s no surprise they’re also the quickest to impose layoffs. Just because one sector is doing it, doesn’t necessarily mean the rest will follow.

How would a potential recession affect unemployment?

A potential recession would negatively affect unemployment significantly. Losing a job is never good, but when you combine it with such high inflation it can really become disastrous. Even Americans with jobs right now are struggling to afford essentials like food and gas. If those numbers would climb while more people become unemployed, we might see an economy in deep recession.