California third worst in ranking of state unemployment rates that are bouncing back the most

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By Dan McCaleb | The Center Square

 (The Center Square) – California’s 10.8% unemployment rate in September was the third highest in the U.S., and the state also ranks third worst in a new study on states whose unemployment rates are bouncing back the best.

Consumer finance website Wallethub analyzed four metrics to determine its rankings.

“We looked at the change in each state’s unemployment during the latest month for which we have data (September 2020) compared to September 2019 and January 2020,” Wallethub said in its report. “We also compared not seasonally adjusted continued claims in September 2020 to September 2019. Finally, we considered each state’s overall unemployment rate.”

Most states’ unemployment rates skyrocketed at the end of March when government restrictions meant to slow the spread of COVID-19 closed businesses deemed to be nonessential.

California’s September unemployment rate (10.8%) was better than only Nevada (12.6%) and Hawaii (15.3%). Its year-over-year unemployment rate increase (186.4%) – from September 2019 to September 2020 –  was better than only four other states (Rhode Island, Nevada, Massachusetts and Hawaii).

“California has the third lowest unemployment rate recovery,” Wallethub analyst Jill Gonzalez told The Center Square. “As a direct consequence of Covid, unemployment has almost doubled throughout the state since September of last year. Compared to the beginning of 2020, the number of unemployed people rose by over 140%, which led to the state having one of the highest unemployment rates, 10.8%. Coronavirus spikes are the main reason the state is struggling with unemployment right now.”

Nebraska, South Dakota and Missouri rank first through third in Wallethub’s analysis of the state’s whose unemployment rates are bouncing back the most.