Unemployment claims decline across U.S., but remain above pre-pandemic levels

Unemployment claims in Virginia were 13.64 percent lower for the week of Jan. 9 2022 than in the previous week.

Amidst high inflation and continued threat of a recession in the United States, WalletHub updated its ranking for the States Where Unemployment Claims are Decreasing the Most.

Claims decreased the most the week ending January 9 in Tennessee, followed by New Hampshire, New Jersey, Washington, D.C. and Virginia.

The decrease in Virginia, according to WalletHub’s report, was the 23^rd smallest decrease in the nation. However, weekly unemployment claims in the Commonwealth were 40.65 percent lower than the same week in 2022, the 9^th biggest decrease in the U.S. Claims were 69.70 percent lower in the same week in 2019, before the COVID-19 pandemic, which is the second biggest decrease in the country.

An expert provided WalletHub with opinions on predictions about unemployment in 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,” Jill Gonzalez, WalletHub Analyst said. “If this ‘worst-case scenario’ comes true, it could mean that millions of people who now have jobs could wind up unemployed.”

Gonzalez explained how a potential recession would affect unemployment in the U.S.

“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. Even Americans with jobs right now are struggling to afford essentials like food and gas. If those numbers would climb while more people become unemployed, we might see an economy in deep recession,” she said.