WalletHub has released an updated ranking of unemployment rates by state, featuring a Q&A with WalletHub analyst Cassandra Happe. Comparing data from all 50 states and the District of Columbia, the report reveals unemployment statistics as recent as December 2023, with reference to key dates from 2019 to 2023.

Happe stated, “The Federal Reserve Board has predicted that the unemployment rate will increase to 4.1% by the end of Q4 2024. Many companies are planning hiring freezes and layoffs in response to rising payroll costs and a tightening job market. She added, Even though consumer confidence in employment stability has increased, overly optimistic expectations may lead to disappointment if the Federal Reserve’s predictions hold true.

She informed that AI is affecting unemployment in various ways. It is creating jobs in fields like data analysis and programming but also causing job displacement due to automation. Jobs in journalism, higher education, graphic and software design are potentially at risk of AI replacement.

In the state-wise analysis, Happe noted that Massachusetts experienced the biggest increase in unemployment at 11.7% from November to December 2023. Conversely, Minnesota experienced the largest decrease with a 5% drop in unemployed persons during the same period.