Texas Ranked 20th Among States Bouncing Back From COVID-19

AUSTIN, TX — Texas is among the top 20 states in the U.S. where employment levels increased the most last month in spite of an economy having been largely stilled by the coronavirus, according to a report released Friday.

With the U.S. gaining 1.4 million jobs in August with a national unemployment rate at 8.4 percent — compared to the nearly historic high of 14.7 percent at the peak of the coronavirus pandemic — the personal finance website WalletHub released updated rankings for the States Whose August Unemployment Rates Are Bouncing Back Most in tracking economic recovery.

The report examines unemployment rates on a monthly basis, complementing the weekly analysis in WalletHub’s report on the States Whose Weekly Unemployment Claims Are Recovering the Quickest.

The upshot: Texas ranked 20th overall in terms of recovery sandwiched between Kentucky and Maine, according to the findings. Still, all is relative amid an ongoing pandemic reach. According to the report, the change in employment from August 2020 to August 2019 in Texas is 90.3 percent. Compared to August 2020, the Texas change in employment was 87.1 percent, researchers found.

Related story: Texas Has 9th Slowest Recovery For Weekly Unemployment Claims

Analysts provided key highlights on Texas:

Unemployment Recovery in Texas (1=Most Recovered, 25=Avg.):

• 90.33 percent Change in Unemployment (August 2020 vs August 2019).
  • 996,264 unemployed people in August 2020 vs 523,448 in August 2019;
  • 19th best recovery in the U.S.
• 87.12 percent Change in Unemployment (August 2020 vs January 2020).
  • 996,264 unemployed people in August 2020 vs 532,434 in January 2020;
  • 24th worst recovery in the U.S.
• 781.22 percent Change in Not Seasonally Adjusted Continued Claims (August 2020 vs August 2019).
  • 1,091,961 continued claims in August 2020 vs 123,914 in August 2019.
  • 24th worst recovery in the U.S.
• 7.0 percent Unemployment Rate (August 2020).
  • 23rd lowest unemployment rate in the U.S.

Given the high level of anxiety among those whose livelihoods were negatively impacted by the corrosive economic effects of the pandemic, WalletHub offered advice and further insight:

WALLETHUB Q&A

Is there a big difference in the unemployment rate among various demographics?

“The unemployment rate does differ sharply among different demographics. The unemployment rate for white people is 7.5 percent, while it’s nearly twice that amount, at 13.1 percent, for black people. The racial disparity is troubling, especially in the context of broader discussions of inequality that have taken place this year,” said Jill Gonzalez, WalletHub analyst. “The unemployment rate can fluctuate a lot by age, too; it’s only 6.2 percent for those aged 45 to 54, but 14.1 percent for people aged 20 to 24. It makes sense that people who have been in the workforce longer would have more job stability, but we should be concerned about the difficult conditions faced by young people.”

Many Americans are approaching, or have reached, six months unemployed. What are some financial tips for people who fall into the long-term unemployment bracket?

“People who are unemployed for six months or more should first make sure they have exhausted all benefits or resources available to them, as some states may offer extended unemployment benefits,” said Jill Gonzalez, WalletHub analyst. “People who have run out of benefits and can’t fall back on savings should look critically at their spending and temporarily cut out anything that is non-essential, as well as look into whether they can get temporary relief on their bills through the biller’s hardship program. Some people may need to borrow money, but should avoid extremely costly options like payday loans unless absolutely necessary.”

What can states do to support people who are unemployed, other than provide traditional benefits?

“Aside from financial assistance, the best way for states to support unemployed residents is to facilitate a safe reopening that allows businesses to start rehiring. States should prioritize reopening places that help unemployed people get back to work, such as libraries with free Wi-Fi where they can conduct job searches and childcare programs that allow parents to go to work,” said Jill Gonzalez, WalletHub analyst. “Safety should be the number one concern in any state’s reopening process, so a big part of getting people back to work is requiring face masks in public and other restrictive measures to prevent a resurgence of COVID-19.”

Which state has experienced the biggest increase in unemployment vs. the beginning of the year?“

Hawaii has experienced the biggest increase in unemployment because the number of unemployed persons jumped by 308% from January 2020 to August, compared to the average increase of 94%,” said Jill Gonzalez, WalletHub analyst. “Hawaii’s overall unemployment rate is 12.5%, compared to the average of 8.4%.”

Which state has experienced the biggest decrease in unemployment vs. the beginning of the year?

“Alaska has experienced the biggest decrease in unemployment because it has seen a 4% decrease in the number of unemployed persons from January 2020 to August, compared to the average increase of 94%,” said Jill Gonzalez, WalletHub analyst. “Alaska’s overall unemployment rate is 6.4%, compared to the average of 8.4%.”

For more details, read the full States Whose Weekly Unemployment Claims Are Recovering the Quickest report.

Graphic provided by WalletHub.