With inflation slowing but prices still relatively high and the U.S. gaining 187,000 jobs in July, slightly higher than in the previous month, WalletHub today released updated rankings for its report on Changes in Unemployment Rate by State, along with a WalletHub Q&A.

In order to take stock of how unemployment rates are changing throughout the U.S., WalletHub compared the 50 states and the District of Columbia based on six key metrics that compare unemployment rate statistics from the latest month for which data is available (July 2023) to key dates in 2023, 2022, 2020 and 2019.

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

WalletHub Q&A

How is artificial intelligence impacting unemployment?

“AI is impacting unemployment in various ways. On the one hand, AI is creating new jobs in fields such as data analysis, machine learning, and programming. On the other hand, AI is also causing job displacement as many tasks that were once performed by humans are now being automated,” said Jill Gonzalez, WalletHub Analyst. “Certain jobs in fields like journalism, higher education, graphic and software design are already at risk of AI replacement, and could lead to higher unemployment sooner rather than later.”

How do the recent banking collapses affect unemployment?

“The recent banking collapses can affect unemployment in a couple of ways. When a bank collapses, it can lead to a reduction in the availability of credit. As a result, businesses may cut back on their hiring, leading to an increase in unemployment,” said Jill Gonzalez, WalletHub Analyst. “Banking collapses can also lead to a loss of confidence in the economy, which can have a negative impact on consumer spending. A reduction in demand for goods and services might follow, which can in turn lead to a reduction in hiring.”

What are unemployment predictions for 2023?

“The U.S. economy is expected to grow very little in 2023. This would lead to a jump in unemployment to as high as 4.6 percent, according to the Federal Reserve. Both of these things would be signs of the Fed continuing to try and get a handle on inflation,” said Jill Gonzalez, WalletHub Analyst. “If this ‘worst-case scenario’ comes true, it could mean that millions of people who now have jobs could wind up unemployed.”

Which state has experienced the biggest increase in unemployment vs. the previous month?

“Idaho has experienced the biggest increase in unemployment because the number of unemployed persons jumped by 5.9% from June 2023 to July 2023, compared to the average decrease of 0.5%,” said Jill Gonzalez, WalletHub Analyst. “Idaho’s overall unemployment rate is 2.8%, compared to the average of 3.5%.”
 
Which state has experienced the biggest decrease in unemployment vs. the previous month?

“Maryland has experienced the biggest decrease in unemployment because it has seen an 11% decrease in the number of unemployed persons from June 2023 to July 2023, compared to the average decrease of 0.5%,” said Jill Gonzalez, WalletHub Analyst. “Maryland’s overall unemployment rate is 1.8%, compared to the average of 3.5%.”

For more information visit https://wallethub.com/edu/states-unemployment-rates/74907