Unemployment

Unemployment Claims Fall 30% In States That Cut Federal UI vs 1.1% in NM

Data from the Department of Labor shows that the four states to cut federal unemployment insurance have seen weekly unemployment claims fall by an average of 29.3%.

Comparing data from a week prior to ending the $300 bonus insurance, Iowa, (17.8%), Mississippi (21.6%), Missouri (34.2%), and Alaska (37.8%) saw significant drops in weekly unemployment claims, as of July 3, 2021 DOL data.

These states, which are serving as a bellwether for job growth for other states looking to end their reliance on federal UI, have continued a downward trend in unemployment since announcing they would stop taking the federal aid.

New Mexico, meanwhile, which was first to request the federal aid and may well be last to give it up, saw a 1.1% drop in weekly unemployment claims during the same period (3,969 as of June 5 versus 3,923 on July 3, 2021).

Mississippi topped the list with a 32% reduction in weekly unemployment claims. Iowa, Missouri, and Alaska also ended federal UI on June 12 and saw initial unemployment claims fall 30%, 25%, and 7%, the very next week, according to DOL data.

The federal unemployment bonus ends September 6, 2021.

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