Thursday, July 18, 2024

WalletHub: Louisiana ranks last in unemployment to recovery rate

by BIZ Magazine

By Stacey Tinsley | BIZ. Magazine

June’s jobs report shows that the U.S. added an additional 4.8 million jobs, and new unemployment claims last week were 81% 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 Unemployment Claims Are Recovering the Quickest, along with accompanying videos and audio files.

Many states, including Louisiana, have recently seen a surge in virus cases, which may be to blame for a new round of potential layoffs.

How encouraged should we be that the economy added 4.8 million jobs in June?

“We should be very encouraged that the economy added 4.8 million jobs in June, as this job growth exceeded expert projections and demonstrates that our recovery is accelerating. Reopening states has had a big impact, and these unemployment numbers demonstrate that the job losses caused by the pandemic are largely temporary,” said Jill Gonzalez, WalletHub analyst. “Despite the encouraging news from the jobs report, it’s important to remember that quite a few states have paused their reopening processes due to spikes in COVID-19. We may see a slowdown in job growth in the near future.”

Louisiana was ranked the 51st state whose unemployment claims are recovering the quickest, according to WalletHub.

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.

The most recovered states last week:

  1. Oregon
  2. Rhode Island
  3. Wyoming
  4. Michigan
  5. Pennsylvania
  6. Montana
  7. Connecticut
  8. Iowa
  9. Missouri
  10. Vermont

The least recovered states last week:

  1. North Carolina
  2. Mississippi
  3. Indiana
  4. Maryland
  5. Texas
  6. Alaska
  7. Florida
  8. Virginia
  9. Georgia
  10. Louisiana

How will pauses in states’ reopening processes affect unemployment?

“If states pause their reopening processes, we will likely see a slowdown in job growth because people who are temporarily laid off in certain non-essential sectors will have to wait longer to get back to work,” said Jill Gonzalez, WalletHub analyst. “We likely will not see a spike in new unemployment claims unless states close businesses that have already reopened. Rather than impose more lockdowns, states should focus on mandatory measures that protect everyone such as mask wearing in public and temperature checks at workplaces and in airports.”

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