States Whose Unemployment Rates Are Bouncing Back Fastest

With the U.S. gaining 943,000 jobs in July, exceeding expert predictions, WalletHub today released updated rankings for the States Whose Unemployment Rates Are Bouncing Back Most.

In order to identify the states whose unemployment rates are bouncing back most, WalletHub compared the 50 states and the District of Columbia based on five key metrics that compare unemployment rate statistics from the latest month for which data is available (July 2021) to key dates in 2019 and 2020.

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

To view the full report and your state’s rank, please visit: https://wallethub.com/edu/states-unemployment-rates/74907

WalletHub Q&A

Does the European travel ban hurt employment?

“The European travel ban does hurt employment, as a recent WalletHub study found that states stand to lose billions of dollars in tourism revenue due to the lack of European travelers this year,” said Jill Gonzalez, WalletHub analyst. “Without the inflow of money from these European tourists, the industries that depend on them won’t be able to hire as many employees. What’s strange about the European travel ban is that it’s not based on COVID-19 incidence rates – there are plenty of countries with higher incidence rates whose residents are allowed entry into the U.S.”

What tips would you give to the new class of college graduates who are now looking for jobs?

“College graduates who are now looking for jobs should start their search in sectors that were impacted most by the COVID-19 pandemic, such as entertainment, retail, dining, and travel. As states reopen, these sectors are experiencing some of the biggest job gains, so graduates will have the greatest chance of getting a job as quickly as possible. Once graduates have stable employment and can pay their bills, they can then start looking to switch to jobs that are more relevant to their degrees,” said Jill Gonzalez, WalletHub analyst. “Another important tip for recent graduates is to get vaccinated, which could help their chances of getting hired by certain employers.”

Is there a big difference in the unemployment rate among various demographics?

“The unemployment rate does differ sharply among different demographics. The unemployment rate for white people is 5%, while it’s much higher, at 8.7%, for black people. The racial disparity is troubling, especially in the context of broader discussions of inequality that have taken place in the past year,” said Jill Gonzalez, WalletHub analyst. “The unemployment rate can fluctuate a lot by age, too; it’s only 3.8% for those ages 45 to 54, but 9.1% for people ages 20 to 24. It makes sense that people who have been in the workforce longer would have more job stability, but we should be concerned about the difficult conditions faced by young people.”

Which state has experienced the biggest increase in unemployment vs. the beginning of 2020?

“Hawaii has experienced the biggest increase in unemployment because the number of unemployed persons jumped by 242% from January 2020 to July 2021, compared to the average increase of 42%,” said Jill Gonzalez, WalletHub analyst. “Hawaii’s overall unemployment rate is 7.3%, compared to the average of 5.4%.”

Which state has experienced the biggest decrease in unemployment vs. the beginning of 2020?

“Nebraska has experienced the biggest decrease in unemployment because it has seen a 22% decrease in the number of unemployed persons from January 2020 to July 2021, compared to the average increase of 42%,” said Jill Gonzalez, WalletHub analyst. “Nebraska’s overall unemployment rate is 2.3%, compared to the average of 5.4%.”