Unemployment Rates by State - Low and High Unemployment Rate States
Recovery is here - 18 states have unemployment levels at 3% or less
On an ongoing basis, Janco analyzes the unemployment rates reported by the BLS. This is then included in the firm's analysis of the projected number of jobs that will be added or deleted from the IT profession. The National unemployment data provides a measure of the health of the overall labor market. A more granular metric is one that considers local conditions - i.e. state and local unemployment.
COVID-19 began its impact on the overall unemployment rate with jump up 0.9% to 4.4% and a loss of over 700,000 jobs at the start of the shutdowns. Then in April the unemployment rate skyrocketed to 14.7% and to drop to 4.2% in November.
Between California and New York alone, almost 3 million jobs were lost during the Covid shutdowns.
Current US unemployment rate. Read on...
Long Term Trend - IT Job Market versus state by state unemployment rate
Employment of IT professionals traditionally is tied to the national unemployment rates. In our research we have found that the number of IT jobs created or lost is tied to the number of states that are at full employment (3.0% or less) versus those with high unemployment rates (5.0% or higher.
High Unemployment States
The highest unemployment states are those that have an overall unemployment rate of 5.0% or higher. In July there was only one high unemployment rate state - Deleware.
The impact of Covid shutdowns can be seen in the comparison of the unemployment rates with the same month of the prior year during the shutdowns.
States with the Lowest Unemployment -- Full Employment States
State unemployment rates continue to improve. At the start of the shutdown, there were 18 states with unemployment rates of less than 3.0%.
In August, the 18 states with unemployment rates 3.0% or less) were - Rhode Island (2.8%); Montana (2.8%); Illinois (2.8%); Georgia (2.8%); Iowa (2.7%); Florida (2.7%); Vermont (2.7); Indiana (2.6%); Alabama (2.6%); Mississippi (2.5%); Kansas (2.5%); South Dakota (2.3%); North Dakota (2.3%); Virginia (2.1%); Nebraska (2.1%); Utah (2.0%); New Hampshire (2.0%); and Minnesota (1.9%).
In August there were 18 states at full employment levels - That is four (4) less than in July.
All of the states that were at full employment levels before the Covid shutdowns have recovered from the massive erosion of the economy.