Unemployment in the U.S. has remained relatively stable over the past year, though it has experienced small fluctuations and a slight overall rise. The job market is still in good shape, as new unemployment claims decreased by 1.3% week-over-week on August 4. There are currently 7.2 million Americans unemployed in total, though, and it’s important to look at some key stats for the latest week to get the complete picture:

• The following states had unemployment claims last week that were lower than in the previous week: Florida, North Carolina, Texas, Maryland, Mississippi, South Carolina, Kentucky, Nevada, Pennsylvania, Illinois, New Jersey, Oklahoma, Missouri, Louisiana, Arkansas, Maine, New Hampshire, Virginia, Alabama, Iowa and the District of Columbia and Montana's claims remained unchanged.
• Surprisingly, 24 states – including Rhode Island, Oregon, Wyoming – and the District of Columbia had unemployment claims last week that were worse than the same week last year

To identify where unemployment claims are decreasing the most, WalletHub compared the 50 states and the District of Columbia based on changes in unemployment claims for several key benchmark weeks. We also considered the number of claims per 100,000 people in the labor force.

Main Findings

States Where Unemployment Claims Are Decreasing the Most

*Rank 1 = Decreased Most
**Rank 1 = Fewest

Detailed Findings

*Refers to the change in the number of unemployment insurance initial claims in the week of August 4, 2025 compared to the week of July 28, 2025.
**Refers to the change in the number of unemployment insurance initial claims in the week of August 4, 2025 compared to the week of August 5, 2024.
***Refers to the change in the number of unemployment insurance initial claims between the weeks of December 30, 2024 to August 4, 2025 compared to the weeks of January 1, 2024 to August 5, 2024.

*Refers to the change in the number of unemployment insurance initial claims in the week of August 4, 2025 compared to the week of July 28, 2025.
**Refers to the change in the number of unemployment insurance initial claims in the week of August 4, 2025 compared to the week of August 5, 2024.
***Refers to the change in the number of unemployment insurance initial claims between the weeks of December 30, 2024 to August 4, 2025 compared to the weeks of January 1, 2024 to August 5, 2024.

Blue States vs. Red States

Ask the Experts

To help provide some guidance for Americans who have lost their jobs or are worried about losing them, WalletHub turned to a panel of experts to provide some additional insight. Click on the experts below to view their bios and responses to the following key questions:

1. Do you think the hiring dynamic is currently tilted in the employees’ favor?
2. With inflation still significant, what is your advice for people looking to protect their finances?
3. Given the current circumstances, what trends do you expect to see in terms of unemployment in the foreseeable future?
4. What are your predictions for the job market in 2025 (job gains, hiring confidence, quit rates etc.)?

Methodology

In order to identify where unemployment claims are decreasing the most, WalletHub compared the 50 states and the District of Columbia based on changes in unemployment insurance initial claims for several key weeks. We also considered the number of claims per 100,000 people in the labor force. The metrics are listed below with their corresponding weights. We then used those metrics to rank-order the states.

• Change in Number of Unemployment Insurance Initial Claims in Latest Week vs. Previous Week: Double Weight (~33.33 Points)
  Note: This metric measures the change in the number of unemployment insurance initial claims in the week of August 4, 2025 compared to the week of July 28, 2025.
• Change in Number of Unemployment Insurance Initial Claims in Latest Week vs. Same Week of 2024: Full Weight (~16.67 Points)
  Note: This metric measures the change in the number of unemployment insurance initial claims in the week of August 4, 2025 compared to the week of August 5, 2024.
• Change in Number of Unemployment Insurance Initial Claims Year to Date vs. Same Period of 2024: Double Weight (~33.33 Points)
  Note: This metric measures the change in the number of unemployment insurance initial claims between the weeks of December 30, 2024 to August 4, 2025 compared to the weeks of January 1, 2024 to August 5, 2024.
• Number of Unemployment Insurance Initial Claims per 100,000 People in Labor Force: Full Weight (~16.67 Points)

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

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