Data: Michigan is among states with worst unemployment rate recovery

Michigan in bottom 10 in terms of unemployment recovery since pandemic started

Michigan Works sign

Data shows Michigan ranking among the worst states when it comes to unemployment rate recovery since the pandemic disrupted the workforce.

A collection of data from WalletHub shows which states’ unemployment rates are bouncing back most. WalletHub said it compared the 50 states and the District of Columbia based on five key metrics that compare unemployment rate statistics from the latest month for which data is available (December 2021) to key dates in 2019 and 2020 -- see full methodology below.

Across the nation, the unemployment rate fell last month to a pandemic low 3.9%. When COVID-19 hit, governments ordered lockdowns, consumers stayed at home and many businesses closed or cut back hours. Employers slashed millions of jobs in March and April 2020, and the unemployment rate rocketed to 14.7%.

The state of Michigan’s unemployment rate was 5.6% as of December 2021, well above the national average.

Here’s a look at unemployment recovery in Michigan

44.21% Change in Unemployment (December 2021 vs December 2019)

  • 265,115 unemployed people in December 2021 vs 183,841 in December 2019;
  • 11th worst recovery in the U.S.

44.46% Change in Unemployment (December 2021 vs January 2020)

  • 265,115 unemployed people in December 2021 vs 183,525 in January 2020;
  • 10th worst recovery in the U.S.

-33.78% Change in Unemployment (December 2021 vs December 2020)

  • 265,115 unemployed people in December 2021 vs 400,370 in December 2020;
  • 23rd best recovery in the U.S.

-19.51% Change in Not Seasonally Adjusted Continued Claims (December 2021 vs December 2019)

  • 48,984 continued claims in December 2021 vs 60,861 in December 2019;
  • 22nd best recovery in the U.S.

5.6% Unemployment Rate (December 2021)

  • 10th highest unemployment rate in the U.S.
Source: WalletHub

Methodology

In order to determine the states whose unemployment rates are bouncing back most, WalletHub compared the 50 states and the District of Columbia across two categories. In the first category, we compared the change in unemployment for the latest month for which we had data (December 2021) to December 2019, December 2020 and January 2020, in order to show the impact since 2019 and since the beginning of last year. We also compared not seasonally adjusted continued claims in December 2021 to December 2019. In the second category, we looked at the state’s overall unemployment rate. We then used the average of those categories to rank-order the states.

Change in Unemployment - Total Points: 50

  • Change in Unemployment in December 2021 vs. December 2019: Full Weight (~12.50 Points)
  • Change in Unemployment in December 2021 vs. January 2020: Full Weight (~12.50 Points)
  • Change in Unemployment in December 2021 vs. December 2020: Full Weight (~12.50 Points)
  • Not Seasonally Adjusted Continued Claims in December 2021 vs. December 2019: Full Weight (~12.50 Points)

Unemployment Rate - Total Points: 50

  • Unemployment Rate (December 2021): Full Weight (~50.00 Points)

Sources: Data used to create this ranking were obtained from the U.S. Bureau of Labor Statistics and the U.S. Department of Labor.


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About the Author:

Dave Bartkowiak Jr. is the digital managing editor for ClickOnDetroit.