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With inflation staying high but the U.S. gaining 315,000 jobs in August, WalletHub today released updated rankings for its report on Changes in Unemployment Rate by City as a follow-up to our report on the States Where Unemployment Claims Are Decreasing the Most, along with accompanying videos and audio files.
Below, you can see highlights from the report, along with a WalletHub Q&A.
| Best Change in Unemployment | |
| 1. Hialeah, FL | 11. West Valley City, UT |
| 2. South Burlington, VT | 12. St. Petersburg, FL |
| 3. Miami, FL | 13. Anchorage, AK |
| 4. Burlington, VT | 14. Cape Coral, FL |
| 5. Juneau, AK | 15. Tampa, FL |
| 6. Minneapolis, MN | 16. Bismarck, ND |
| 7. St. Paul, MN | 17. Fremont, CA |
| 8. San Jose, CA | 18. Salt Lake City, UT |
| 9. San Francisco, CA | 19. Garden Grove, CA |
| 10. Pembroke Pines, FL | 20. Fort Lauderdale, FL |
To view the full report and your city’s rank, please visit: https://wallethub.com/edu/cities-unemployment-rates/73647
WalletHub Q&A
How will the Fed’s interest rate hikes affect unemployment?
“If the Fed continues to be more aggressive when raising interest rates, it will have a bigger impact on unemployment. The Fed is now projecting that the unemployment rate will rise to 4.5% after their latest hike, which would translate to about 1.3 million people losing their jobs,” said Jill Gonzalez, WalletHub Analyst. “That number won’t be distributed evenly, though, because unemployment for Blacks and Hispanics tends to rise faster than it does for Whites during economic turmoil.”
How are current labor shortages affecting the economy?
“The labor shortage we’re seeing right now was originally created by layoffs during the pandemic,” said Jill Gonzalez, WalletHub Analyst. “The problem is that only 25% of those laid off have returned back to work. If the shortage continues, there could be rising wages and even more inflation in the short term. In the long term, it could slow or stop GDP growth and bring about a recession.”
What qualities should unemployed people look for when choosing which businesses to apply to?
“Unemployed people can now be a little more picky when it comes to finding a job, since many businesses are in need of workers. If remote work is important to you, the leverage is there now more than ever to request at least a hybrid work schedule,” said Jill Gonzalez, WalletHub analyst. “That being said, recession is coming, so now is the time to become employed. Employees should look for businesses that have long term growth and needs that can outlast the recession.”
