Updated: States That Had the Quickest Weekly Unemployment Claims Recovery – NM is 50th- WalletHub Study

Despite the fact that many states have been hit by a surge in COVID-19 cases, new unemployment claims decreased week-over-week on November 23, and were 90% below the peak during the COVID-19 pandemic. To help add some context to these statistics, WalletHub just released updated rankings for the States Whose Weekly Unemployment Claims Are Recovering the Quickest, along with accompanying videos and audio files.

To identify which states’ workforces are experiencing the quickest recovery from COVID-19, WalletHub compared the 50 states and the District of Columbia across three metrics based on changes in unemployment claims. Below, you can see highlights from the report, along with a WalletHub Q&A. To see the states most recovered since the beginning of the COVID-19 pandemic, click here.

States with Weekly Claims Better Than Last Year:

• Oklahoma
• Wyoming

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

WalletHub Q&A

What does Thanksgiving travel tell us about unemployment in the coming months?

“Despite the COVID-19 pandemic, people have a strong desire to resume their normal activities, which is demonstrated by the fact that around 50 million Americans traveled between November 25 and 29, down only 5 million from the equivalent period in 2019. People’s attitudes concerning a return to normalcy, coupled with the impending widespread distribution of a COVID-19 vaccine next year, should eventually work together to significantly cut down unemployment,” said Jill Gonzalez, WalletHub analyst. “Until a vaccine gets widely distributed, though, people should continue to be cautious in order to avoid harsher lockdowns that will cause greater unemployment in the short-term.”

What does the recent vaccine news from Moderna mean for unemployment?

“The fact that Moderna announced that their vaccine is nearly 95% effective should be a big encouragement to people who are unemployed. Since two companies, Moderna and Pfizer, both have demonstrated an effective vaccine, we can expect to see a larger quantity of doses become available initially, assuming both vaccines are approved,” said Jill Gonzalez, WalletHub analyst. “The sooner we can get the majority of Americans vaccinated, the sooner we can proceed to a full reopening. Once businesses are allowed to operate at full capacity, we can expect to see more aggressive hiring.”

Should the government step in to help industries like movie theaters avoid going bankrupt?

“The government should take actions to prevent highly-impacted industries such as movie theaters from going bankrupt. Government restrictions on capacity, though essential for safety, have caused many places to become unprofitable. We should protect businesses against bankruptcy to prevent another rise in unemployment,” said Jill Gonzalez, WalletHub analyst. “In order to receive assistance, companies and landlords in danger of bankruptcy should also be willing to share in the cost. The government can’t be solely responsible for bailing everyone out.”

How do red states and blue states compare when it comes to recovery?

“With an average rank of 22 among the most recovered states, red states had a better recovery from unemployment claims last week than blue states, which rank 31 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 Texas – the state with the most COVID-19 cases – recovered?

“Texas’ unemployment claims have experienced the 18^th quickest recovery in the U.S. For the week of November 23, Texas had 23,189 new unemployment claims, a 93% decrease from the peak during the coronavirus pandemic,” said Jill Gonzalez, WalletHub analyst.

Cities Whose October Unemployment Rates Are Bouncing Back Most – WalletHub Study

The employment market continued to recover in October, as the latest jobs report shows that the national unemployment rate has fallen to 6.9%, which is 53% below the peak of 14.7% during the height of the COVID-19 pandemic. To provide more context at the city level, WalletHub today released its report on the Cities Whose October Unemployment Rates Are Bouncing Back Most, as a follow-up to our report on the States Whose Weekly Unemployment Claims Are Recovering the Quickest, along with accompanying videos and audio files.

This report uses new data from the Bureau of Labor Statistics, which disclosed that it erroneously didn’t count some workers on temporary layoffs as unemployed. Therefore, the real unemployment rate may be around 4% higher than reported, and our report includes both the official rate and an “adjusted” rate based on this error.

Below, you can see highlights from the report, along with a WalletHub Q&A.

To view the full report and your city’s rank, please visit: https://wallethub.com/edu/cities-unemployment-rates/73647/

WalletHub Q&A

What spending tips would you give to people who are unemployed during the holidays?

“People who are unemployed during the holidays should focus on making essential purchases, and should shop around for the best seasonal deals to save as much money as possible,” said Jill Gonzalez, WalletHub analyst. “It’s important for unemployed people to not overspend on presents, as there’s so much pressure to buy during the holidays. Some alternative ways to show you care include giving handmade gifts, spending time with people while doing their favorite activities, and volunteering to help out with chores or maintenance to give them a rest. These gestures can be even more meaningful than buying expensive gifts.”

How would a reauthorization of the Paycheck Protection Program impact unemployment?

“A reauthorization of the Paycheck Protection Program would help guard against an increase in unemployment because it would incentivize businesses to keep employees on the payroll or rehire those who were previously laid off. The first PPP was effective, as it saved over 51 million jobs, according to the U.S. Small Business Administration,” said Jill Gonzalez, WalletHub analyst. “If there is a second round of PPP loans, we should be stricter about who receives aid. Large corporations ended up taking a lot of the money that was meant for small businesses, and some companies with no financial issues got loans while others with legitimate troubles were denied.”

Should cities have more restrictions than states if they see cases rising locally, even if it hurts employment?

“Public health should take precedence, so cities can choose to have more restrictions than states if there is a local spike in COVID-19 cases,” said Jill Gonzalez, WalletHub analyst. “It’s important to keep in mind that local lockdowns are only effective under certain conditions. Unless the flow of people to and from highly-affected areas gets restricted, the virus will spread wherever infected people travel.”

Los Angeles has experienced the largest number of COVID-19 cases in the U.S. How has Los Angeles’ unemployment rate been affected?

“Los Angeles has experienced a 162% increase in unemployment from January 2020 to October,” said Jill Gonzalez, WalletHub analyst. “This is worse than the average increase of 95%. Los Angeles’ overall unemployment rate is 12.0%, compared to the average of 6.9%.