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WalletHub Study: Unemployment Claims in California Are 32.04% Lower Than Last Year

California is struggling to recover from new unemployment claims, with last week’s claims higher than at the start of 2020, according to WalletHub’s updated rankings for the States Whose Unemployment Claims Are Recovering the Quickest.

Key Stats:

  • Weekly unemployment claims in California increased by 11.96% compared to the same week in 2019. This was the 6th biggest increase in the U.S.
  • Weekly unemployment claims in California increased by 25.89% compared to the start of 2020. This was the 4th biggest increase in the U.S.
  • Weekly unemployment claims in California decreased by 32.04% compared to the same week last year. This was the 10th smallest decrease in the U.S.

To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/states-unemployment-claims/72730  

WalletHub Q&A

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,” said Jill Gonzalez, WalletHub Analyst. “Even Americans with jobs right now are struggling to afford essentials like food and gas. If those numbers to climb while more people become unemployed, we might see an economy in deep recession.”

What do you make of the fact that there are more job openings than there are unemployed Americans?

“Unemployment is really no longer an issue since the country has recovered from much of the fallout of the pandemic,” said Jill Gonzalez, WalletHub Analyst. “The next step might be looking to open up immigration to fill the surplus of jobs nationwide. Doing so would not only help businesses meet their needs, but would also drive additional economic growth.”

Unemployment is now at its lowest since the pandemic started. What does this mean for the U.S. economy?

“The national unemployment rate fell to 3.6 percent last month, the lowest level since the prepandemic level of 3.5 percent. This means that decreasing Covid-19 cases brought on a high number of new jobs and new workers, which are both signs that the pandemic’s hold on the economy may also be decreasing,” said WalletHub Analyst, Jill Gonzalez. “U.S. employers added over 390,000 jobs in May, continuing the streak of strong job growth we’ve been seeing for months. Job growth, in combination with less mask and vaccine mandates nationwide, should spur even more economic recovery.”

How do red states and blue states compare when it comes to new unemployment claims? 

“With an average rank of 24 among the most recovered states, blue states had a better recovery from unemployment claims last week than red states, which rank 28 on average,” said Jill Gonzalez, WalletHub analyst. “The lower the number of the ranking, the bigger the state’s recovery was.” 

How has unemployment in California – the state with the most COVID-19 cases – been impacted?

“California’s unemployment claims have experienced the 4th slowest recovery in the U.S. For the week of June 6, California had 46,225 new unemployment claims, a 96% decrease from the peak during the coronavirus pandemic,” said Jill Gonzalez, WalletHub analyst.

This article was released by WalletHub.