Unemployment rates have been rising in the U.S. this year, with the job market not growing fast enough to keep up. August marked the fourth consecutive month of increasing unemployment, with the current rate at 4.3%.
We have examined an extensive survey compiled by WalletHub to explore 12 states where unemployment claims are increasing the most. All unemployment claim data is sourced from WalletHub.
Massachusetts
Massachusetts, located in New England, is a hub for education, healthcare, and technology. Despite being home to some of the world’s most reputed universities, such as Harvard and Massachusetts Institute of Technology (MIT), and having a solid job market in tech startups, unemployment is a growing issue in Massachusetts.
Unemployment claims in Massachusetts have risen by 45% compared to the previous week at the time of the survey (August 1, 2024). The trend has continued throughout the year, with a 48% increase in claims compared to the same period the previous year.
Michigan
Surrounded by four of the five Great Lakes, Michigan is in a region known as the Great Lakes region. It is considered a reasonably affordable state to live in. Housing costs are said to be well below the national average. However, unemployment is a significant problem, with 289 unemployment claims per 100,000 people, the highest for any state. Unemployment claims at the time of the survey have almost tripled compared to those in August 2023.
Missouri
Missouri has a rich history and strong links to Mississippian culture. Due to its central location in the U.S., it plays a crucial role in transportation and distribution. The state saw a 116% weekly increase in unemployment claims, the highest among all states. Some cities in Missouri have experienced their highest unemployment levels in three years, making it a critical issue for the state to address.
Iowa
Termed as the world’s food capital, Iowa is known for its strong agricultural industry, especially in corn and soybeans. Iowa ranks first in the production of beef, pork, corn, soybean, and grain. Iowa’s unemployment rate was 2.8% in June, with around 45,000 people without a job. This number is slowly growing, with the state recording an 11% increase in unemployment claims in the week the survey was conducted.
North Dakota
North Dakota is known for its oil production and farming. Many people in the state are employed in agriculture, and a large chunk of the land is devoted to farming. While the number of unemployment claims from the start of this year has increased by 48% compared to the same period last year, North Dakota has shown some recent improvement, with a reduction in claims in the week right before the survey.
Minnesota
Minnesota is known for its strong healthcare and medical device manufacturing. Nicknamed the “Land of 10,000 Lakes”, the state is home to major companies like Medtronic and St. Jude Medical. Minnesota’s unemployment rate has remained relatively high in the past year, between 2.7% and 3%. The state has recorded a 16% increase in unemployment claims from the previous week’s numbers at the time of the survey.
Nevada
Nevada is famous for Las Vegas and its entertainment industry. It’s also nicknamed the “Silver State” in reference to the significant silver deposit that attracted settlers and strengthened the area’s economy. Despite Nevada’s strong economic growth, unemployment rates have been rising, reaching 5.4% in December 2023, the highest rate in the nation. Experts have explained that this is due to the growth in the labor market rather than the loss of jobs.
Kansas
Kansas is located in the country’s center and is known for its agriculture, mainly wheat and corn production. The state has the third-lowest cost of living in the country, with essential expenses like housing and food all below the national average. Despite that, unemployment claims from the start of this year have increased by 21% compared to the same period last year. Kansas’ unemployment rate has risen to 3.1%, the fourth monthly increase in 2024.
Colorado
Colorado is known for its outdoor recreation in the Rocky Mountain region. The economy benefits from tourism, which is a result of the natural beauty. Colorado offers higher salaries compared to the national average, prompting job seekers to move to the state.
However, unemployment is becoming a problem in Colorado, with unemployment claims rising by 21% in recent times. In June, the unemployment rate was 3.8%, the highest in two years.
Virginia
Virginia is one of the major states in the U.S., as it is the home of Washington, D.C., the country’s capital. Virginia is very important to the country’s origin and is also known as “the birthplace of a nation.” Despite Virginia’s importance, the state had the highest unemployment rate in June. Additionally, unemployment claims have risen by 32% in the past week at the time of the survey.
Oregon
One of the Pacific Northwest states, Oregon is known for its natural beauty and environmentally friendly policies. However, the cost of living is high in Oregon, with it being one of the top ten most expensive states to live in the county. While Oregon has managed to keep unemployment from rising too much this year, there has been a recent surge in unemployment claims.
New Jersey
New Jersey is known for its strong healthcare industry, especially pharmaceuticals. However, it is expensive to live there. The cost of living is 11% higher than the national average, and housing costs are exceptionally high.The state has been battling unemployment but has seen some improvement recently.
According to the latest survey data, unemployment claims have decreased, and New Jersey has only 17 unemployment claims per 100,000 people, the lowest in the state.
