Nevada, Michigan and Hawaii are the three states where unemployment rates across the country rose the most during the coronavirus pandemic, as the unemployed in California rise higher than during the Great Recession.
Unemployment rates were up, and overall employment fell in all 50 states last month as attempts to stem the spread of COVID-19 forced companies across the country to shut down, the Labor department said Friday.
The department’s Bureau of Labor Statistics said that 43 states recorded record high unemployment rates last month, with the top three being Nevada (28.2%), Michigan (22.7%), and Hawaii (22.3%).
The monthly breakdown of non-agricultural employment at the state level and unemployment figures paint a picture of widespread yet uneven devastation caused by the spread of COVID-19.
In April, US employers cut 20 million jobs, eliminating ten-year job growth in one month. The unemployment rate reached 14.7%, the highest since the depression.
Unemployment rates were up, and total employment fell in all 50 states last month as attempts to curb the spread of COVID-19 forced companies across the country to shut down, the Labor department said Friday. An unemployment agency in Los Angeles is shown above
Millions of other people who were unemployed were not considered unemployed because they were not looking for a new job. Since then, 10 million more workers made redundant have applied for unemployment benefits.
Friday’s report found that more than a quarter of job losses were concentrated in three of the largest US states: California, which cut 2.3 million jobs; New York, which has seen the largest number of deaths and deaths from COVID-19 and lost 1.8 million positions; and Texas, which suffered a double blow from steeply declining oil prices and lost 1.3 million jobs.
Nevada’s unemployment rate rose 21.3 percentage points to 28.2% from March, almost double the national rate of 14.7% in April.
In the state, where the global gambling mecca of Las Vegas is located, half of the nearly 245,000 jobs lost in April were in the leisure and hospitality industry.
That industry has suffered the greatest losses nationally due to reductions in travel and the widespread closures of restaurants distributed within a month when home orders were widely deployed.
Losses in the recreation and hospitality industries also took a heavy toll on Hawaii, which was one of only three states with an unemployment rate above 20% – Nevada and Michigan were the other two.
The Pacific island group lost more than 55% of its leisure and hospitality jobs last month, accounting for 57% of all jobs lost during that period.
In Michigan, more than one in five jobs were cut, at least temporarily. The leisure and hospitality industry also declined there, but a quarter of the state’s losses came from industry and construction.
Unemployed workers attend a demonstration on Friday to claim their unemployment benefits in Miami Beach, Florida. Dozens of unemployed catering and service workers who have not received unemployment checks are leading a caravan action demanding that Florida Governor Ron DeSantis pay his bills
Vehicles are seen during a caravan protest asking the state of Florida to improve the unemployment system on Friday
Meanwhile, the data shows that the unemployment rate in California nearly tripled to 15.5% in April, as the country’s most populous state lost more jobs to the corona virus in one month than it did during the Great Recession a decade ago.
Just two months ago, California experienced unprecedented economic expansion, as it added more than 3.4 million jobs in 10 years, accounting for 15% of the country’s job growth. More than two-thirds of that profit was wiped out last month as the state lost 2.3 million jobs.
California accounted for 11.4% of all jobs lost across the country in April, as the unemployment rate has risen by 10.2 percentage points since March, the largest increase since 1976 when the state began using its current formula to reduce job losses to measure. All 11 branches of the state saw a decline in April, led by recreation and hospitality by more than 866,000.
Layoffs persisted in May, even though all 50 states have reopened companies to some degree. On Thursday, the BLS reported that more than 2.4 million people applied for unemployment benefits for the first time last week, and those who still receive 25 million in the week ending May 9.
That data suggests the worst may not be over for the worst-hit states like Nevada, Hawaii, and Michigan. The number of persistent claims increased in all three, including a week-to-week increase in Hawaii.
Economists believe that progress in reducing infection rates will be a major factor in the success of the state’s reopening efforts.
At least in that regard, Hawaii and Nevada appear to be leaders, and they belong to just eight states that have seen a drop in the 7-day average of new cases for three consecutive weeks. Michigan is one of 20 states that have fallen in two of the past three weeks.
On Thursday, the BLS reported that more than 2.4 million people applied for unemployment benefits for the first time last week and those who continue to receive 25 million unemployment benefits in the week ending May 9.
The new figure released by the Department of Labor on Thursday is the latest wave of layoffs from the viral outbreak that led to widespread business stoppages two months ago and brought the economy into a deep recession.