In this article we are going to list the 5 states with the largest declines in unemployment in 2022. For a detailed coverage of this topic and a more comprehensive list please take a look at the 15 states with the largest declines in unemployment in 2022.
5. Florida
Rate of unemployment in Dec 2021: 3.5%
Rate of unemployment in Dec 2022: 2.5%
Florida’s workforce has increased t0 361,000 people over a span of one year from December 2021 to December 2022. The hospitality and leisure sector had gone through massive crashes when the pandemic hit; however, since December 2021, this sector has seen an increase in employment by 88,600 people.
4. Pennsylvania
Rate of unemployment in Dec 2021: 5.5%
Rate of unemployment in Dec 2022: 3.9%
According to The Pennsylvania Department of Labor & Industry (L&I), the state hit a record low rate of unemployment. There is a rise in opportunities for the people in Pennsylvania and the largest rise in employment was in the construction sector.
3. California
Rate of unemployment in Dec 2021: 5.8%
Rate of unemployment in Dec 2022: 4.1%
California boasts state employers adding approximately 16,200 nonfarm payroll jobs, to boost the economy. After hitting their lowest unemployment rate of 3.9% in September, California closed the year with a 4.1% unemployment rate, which is still much lower compared to Dec 2021. Even though the future of employment in the state is unpredictable at the moment, it has still managed to recover all of the millions of jobs that had suffered due to the pandemic. According to the Public Policy Institute of California, there are more job openings than job seekers in this state, and that is something they have never experienced before.
2. New Jersey
Rate of unemployment in Dec 2021: 5.1%
Rate of unemployment in Dec 2022: 3.4%
In 2022, New Jersey has managed to recover approximately 96% of the jobs that were lost due to the effects of the COVID-19 pandemic in March 2020. This is around 703,300 jobs in around 2 years. Some of the areas that showed a rise in employment include financial jobs, education, health, leisure and hospitality, and professional and business services. The state has been working constantly to add jobs, and successfully improve the economic conditions of New Jersey.
1. New Mexico
Rate of unemployment in Dec 2021: 5.9%
Rate of unemployment in Dec 2022: 3.9%
Topping the list of 15 States with the Largest Declines in Unemployment in 2022 is New Mexico. 3.9% is the lowest rate of unemployment that New Mexico has seen in 15 years. Considering the fact that during the pandemic, a lot of businesses were closing down, and New Mexico had been facing an unemployment rate of 9.8% in May 2020, going down to 3.9% is quite a feat. This is due to a change in the nature of the labor, preferring jobs in education rather than the government and a low labor force participation rate.
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