(The Center Square) – Unemployment claims are dropping so rapidly that Vermont ranked sixth in the country, according to a new report.
WalletHub ranked the Green Mountain State near the top of its report “States Where Unemployment Claims are Decreasing the Most.” The state currently has 11 in every 100,000 workers in the labor force filing new unemployment claims.
Ariana R. Levinson, a teaching professor at the University of Louisville’s Brandeis School of Law, said the hiring is not tilted in employees’ favor.
“Factors such as the pandemic, retirements of baby boomers, wealth inequality, and workplace safety concerns have coalesced to cause some workers to reject employment they might previously have accepted, cause some employers to have difficulty finding and/or retaining workers, and cause more workers to join together to demand improved working terms and conditions, including through unionization,” Levinson said in the release.
Levinson went on to say that the United States economy “has a cyclical pattern” that does feature recessions, employment-at-will, and laws governing unionization.”
“Only if we see significant labor and employment law reform at the national level and a transition to a shared economy where workers own their own businesses will the hiring dynamic become equalized,” Levison said in the release. “This type of systemic reform does not appear likely given the inability of the Senate to pass significant legislation.”
The state saw a drop of 36.42% of new unemployment claims from the previous week, which ranked the state first, followed by New Hampshire, Michigan, Connecticut and Mississippi.
In addition, according to the report, Vermont had 2.93% decrease in unemployment insurance claims filed last week from prepandemic levels, and a 49.49% drop in claims from the same week in 2021. The number of unemployment claims stands at 58 per 100,000 people in the labor force.
According to the report, the country has witnessed a reduction in unemployment that skyrocketed to record highs at the height of the COVID-19 pandemic. However, inflation and a recession threat may cause unemployment to again spike.
WalletHub reports that new unemployment claims have dropped by 2.6% nationwide since Aug. 29, and 6 million are currently unemployed.