In last week of Nov. state unemployment rate fell by almost a third: study

For the week of Nov. 21, new unemployment claims in New Hampshire were 31.28 percent lower than in the previous week, despite high inflation and the threat of a recession, according to WalletHub's updated rankings for the States Where Unemployment Claims are Decreasing the Most

Key Stats:

• Weekly unemployment claims in New Hampshire decreased by 31.28% compared to the previous week. This was the 19^th biggest decrease in the U.S.
• Weekly unemployment claims in New Hampshire were 41.87% lower than in the same week last year. This was the 6^th biggest decrease in the U.S.
• Weekly unemployment claims in New Hampshire were 53.06% lower than in the same week pre-pandemic (2019). This was the 4^th biggest decrease in the U.S.
• Unemployment Insurance Initial Claims per 100,000 People in Labor Force in New Hampshire: 35

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


WalletHub Q&A

The unemployment rate is now expected to hit 5% next year. What does this mean for the economy?

"The unemployment rate is expected to rise from its current level of 3.7% to about 5% by the end of next year. This shouldn't be surprising news, since the Fed is taking further steps to damper inflation," said Jill Gonzalez, WalletHub Analyst. "While higher unemployment is bad for the families affected, it is good news for the economy as a whole in the current inflationary environment because it should eventually lead to a decrease in inflation. The current projections should also lead to a decrease in interest rates in 2024, once inflation has hopefully subsided enough."

When is unemployment expected to pick up again?

"Unemployment is expected to pick up again following this larger Fed rate hike," said Jill Gonzalez, WalletHub Analyst. "The chances of a sharp rise in unemployment in the US over the coming year are high. The unemployment rate was expected to average 3.7% this year before rising to 4.4% and 4.8% in 2023 and 2024, respectively. That number has not been reached yet, so we should expect it fairly soon. Once unemployment does start to rise, the Fed should be able to pull back on its aggressive rate increases."

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."

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

"With an average rank of 22 among the states with the biggest decreases in unemployment claims, red states fared better last week than blue states, which rank 30 on average," said Jill Gonzalez, WalletHub Analyst. "The lower the number of the ranking, the bigger the decrease in the state's new unemployment claims was."

How has unemployment in the Mountain states - the division with the highest inflation growth in the past 12 months - been impacted?

"Among Mountain states, Wyoming unemployment claims have experienced the 8^th biggest decrease in the U.S. For the week of November 21, Wyoming had 333 new unemployment claims, a 46% decrease from the previous week. On the other hand, unemployment claims in Idaho have experienced a 4% increase for the same period."