By Zachery Schmidt
Arizona saw the second-largest percentage drop in unemployment claims, according to a new report.
WalletHub released a report examining unemployment claims in America from Nov. 17 to Nov. 24. The only state that did better than Arizona was Alabama.
The report examined changes in states’ unemployment claims rate and the number of claims per 100,000 people in the workforce.
Chip Lupo, a WalletHub analyst, told The Center Square that Arizona, particularly in the Phoenix metro area, has seen unemployment claims decline recently.
From Nov. 17 to Nov. 24, Arizona saw its unemployment claims decrease by almost 36%, according to the report. The report also found unemployment claims in Arizona are down nearly 23% compared to the same time last year.
Lupo noted Arizona has a “strong job market” currently, adding that people can find jobs, which means they file fewer unemployment claims.
He added Arizona is seeing economic expansion with businesses hiring and enlarging their operations.
This ranking can be tied to the housing market, Lupo said, noting Phoenix has a “hot real estate market.” He added an active housing market “does wonders for the labor force,” such as creating more construction jobs.
The housing market is something to “keep an eye on” because if it experiences a downward trend, then there “might be cause for concern,” Lupo said.
However, despite this warning, Lupo said Arizona is doing as “well as any state” in America economically.
Looking ahead, Lupo described Arizona’s employment picture as “very bright” and said the state has a good labor force participation rate.
The report found Arizona has 40 unemployment claims per 100,000 people in the labor force. The state is tied for the fourth-lowest rate in the country.
Arizona’s unemployment claims per 100,000 people in the workforce are much lower than neighboring states.
Utah and New Mexico are the closest with 82 and 83 unemployment claims per 100,000, respectively. Nevada has 132 per 100,000, and California has 170 per 100,000, the report showed.
Arizona’s labor force is “very healthy and engaged,” with few people underemployed, Lupo told The Center Square.
Lupo described an underemployed person as someone working in a job several pay grades below their level of education. An example would be someone with a bachelor’s degree working at Walmart as a greeter.
The report said blue states saw unemployment claims decrease more than red states did.
Lupo said blue states usually have large metro areas, big population centers and diverse economies.
Furthermore, he stated blue states tend to have “more jobs in sectors that are less prone to layoffs,” such as health care, professional services and technology.
Lupo also said blue states have better “programs or policies that keep people employed,” as well as stronger benefit packages and worker protections.
Be the first to comment