Monthly statistics presented by the United States’ Employment Development Department on Friday showed a rise in unemployment in more than half of the country’s states, which could be accounted for a surge of people entering the labor market and not finding employment immediately.
The data shows that 25 states throughout the country have slight spikes in unemployment rates, 16 stagnated and 9 states plus Washington D.C. have had smaller percentage of unemployed citizens. The overall unemployment rate rose from 5.4 to 5.5 percent nationwide.
However, job growth throughout the country is healthy as employers have added more 280.000 jobs during the last month. Correlating this with a rise in unemployment seems baffling at first, but the explanation is actually simple: in the context of a recovering labor market, more people are actively searching for a job or even quit their job in search of something better but have not been able to immediately find employment.
For example, employers in California have added more than 54,000 jobs last month, the most throughout the whole country, and despite this the US’ third largest state saw its unemployment rate rise slightly from 6.3 to 6.4 percent. This happened because over 70,000 people who were inactive on the labor market have actively started searching for jobs during the month of May, and 13,000 of them did not manage to find one until the measuring period finished at the end of May.
New York and Texas were the next states in a top of most added jobs, with the former adding 42,700 jobs throughout May and the latter 33,200. Neither of them experienced a drop in unemployment.
In an average done on a period comprising the last 12 months, all American states have added jobs with the exception of West Virginia, whose major lay-offs in mining and construction left it with 17,000 less jobs compared to May 2014. Naturally, it is also the state with the highest unemployment rate, with 7.2 percent, overtaking previous leader Nevada, which is now at 7.1.
In the other end, Nebraska is state with the lowest unemployment rate throughout the country, with only 2.6 percent of its active labor force having no job – it has also gone up from 2.5 percent in April for the same reasons as most. It passed North Dakota in this regard in April, due to the severe drop in oil prices dictating job cutbacks in that state. North Dakota still stands on a low unemployment rate of 3.1 percent.
Image Source: The Sun