New York is having a somewhat successful recovery from new unemployment claims, with last week’s claims lower than at the start of 2020, according to WalletHub’s updated rankings for the States Whose Unemployment Claims Are Recovering the Quickest.
Key Stats:
- Weekly unemployment claims in New York increased by 38.83% compared to the same week in 2019. This was the 23rd smallest increase in the U.S.
- Weekly unemployment claims in New York decreased by 55.50% compared to the start of 2020. This was the 6th biggest decrease in the U.S.
- Weekly unemployment claims in New York decreased by 77.78% compared to the same week last year. This was the 19th biggest decrease in the U.S.
WalletHub Q&A
How might the upcoming 4th of July holiday affect unemployment?
“The upcoming 4th of July holiday should contribute to reducing unemployment. Around 84% of Americans will celebrate the holiday this year, according to the National Retail Federation, and collectively they will spend billions of dollars on food, fireworks and patriotic goods – plus travel to the festivities. This spending bump will provide an influx of revenue to retailers that will give them the resources to hire more,” said Jill Gonzalez, WalletHub analyst. “This 4th of July will be far more impactful than last year, as states have largely reopened and a recent WalletHub survey found that more than a third of Americans plan to spend more money than they did in 2020.”
Some states are proposing paying bonuses to people who go back to work. Is this a good idea?
“It is a bad idea for states to pay bonuses to people who go back to work. The government has already done its job to get the pandemic under control with shutdowns and the vaccine, and it supported people and businesses with multiple stimulus packages,” said Jill Gonzalez, WalletHub analyst. “Now that COVID-19 cases have dropped dramatically and the country has largely reopened, it’s time for the free market to function again.”
If the U.S. fails to reach “herd immunity,” what could that mean for unemployment?
“If the U.S. fails to reach ‘herd immunity,’ that wouldn’t be ideal, but it also wouldn’t prevent us from getting things back to normal. A significant portion of the population is getting vaccinated, which will still greatly reduce the transmission rate and threat of the disease. As a result, we should see a continued decline in unemployment,” said Jill Gonzalez, WalletHub analyst. “The U.S. has already made big strides toward a full reopening. The more people who choose to get vaccinated, the smoother that reopening will be and the greater companies’ hiring capabilities will be.”
Do you expect companies to require getting the COVID-19 vaccine as a condition for employment?
“It is likely that some companies will require getting the COVID-19 vaccine as a condition for employment, with obvious exemptions for people who are medically unable to receive it,” said Jill Gonzalez, WalletHub analyst. “Companies should be able to have a COVID-19 vaccine requirement because they need to do everything in their power to keep their workers and customers safe. In addition, the more companies that require employees to get a vaccine, the faster we will be able to achieve a full reopening.”
How do red states and blue states compare when it comes to recovery?
“With an average rank of 30 among the most recovered states, blue states had a worse recovery from unemployment claims last week than red states, which rank 22 on average,” said Jill Gonzalez, WalletHub analyst. “The lower the number of the ranking, the bigger the state’s recovery was.”
How has unemployment in California – the state with the most COVID-19 cases – recovered?
“California’s unemployment claims have experienced the 22nd quickest recovery in the U.S. For the week of June 21, California had 57,020 new unemployment claims, a 95% decrease from the peak during the coronavirus pandemic,” said Jill Gonzalez, WalletHub analyst.
