With over 22 million jobs wiped out so far during the COVID-19 pandemic, WalletHub released its report on the Cities with the Biggest Growth in Unemployment Due to COVID-19, along with accompanying videos.
In order to identify where workers have been most affected by the coronavirus pandemic, WalletHub compared 180 cities based on how their unemployment rate has changed over time. We compared unemployment during the latest month for which we have data (March 2020) to March 2019 and January 2020 in order to see the difference from the beginning of the year and from last year. Below, you can see highlights from the report, along with a WalletHub Q&A.
|Most Affected Cities|
|1. Seattle, WA||11. Reno, NV|
|2. Hialeah, FL||12. Dover, DE|
|3. North Las Vegas, NV||13. Orlando, FL|
|4. Miami, FL||14. Port St. Lucie, FL|
|5. Henderson, NV||15. Salt Lake City, UT|
|6. Las Vegas, NV||16. Long Beach, CA|
|7. Aurora, CO||17. Santa Clarita, CA|
|8. Denver, CO||18. Los Angeles, CA|
|9. Cleveland, OH||19. Chicago, IL|
|10. Colorado Springs, CO||20. Fort Lauderdale, FL|
To view the full report and your city’s rank, please visit: https://wallethub.com/edu/cities-with-the-biggest-growth-in-unemployment-due-to-covid-19/73647/
What can cities do to minimize the increase in their unemployment rates?
“Cities can minimize the increase in their unemployment rates by providing support to local industries hit hardest by the COVID-19 pandemic, such as tourism, retail or entertainment. Though cities don’t have control over when these businesses can reopen, they could provide tax breaks (similar to what the federal government is doing) in order to incentivize businesses to keep employees on the payroll,” said Jill Gonzalez, WalletHub analyst. “Some major city mayors are also drawing money from reserve funds or reallocating money that would have been used for less-essential purposes in order to help workers. Mayors can also use their influence to lobby Congress to provide aid to struggling local communities, which several major city mayors have done so far.”
How are city budgets affected by the coronavirus crisis and resulting unemployment?
“Many cities are experiencing massive budget deficits because of the coronavirus crisis, and this will only become more difficult to manage as cities continue to struggle to support affected industries,” said Jill Gonzalez, WalletHub analyst. “Without federal help, many cities may be forced to make big cuts to their budgets, to the detriment of education, recreational programs and other important services that take a backseat to immediate health concerns. For example, New York City’s new proposed budget is $6 billion smaller than last year’s.”
New York City has experienced the current largest number of COVID-19 cases in the U.S. How has New York City’s unemployment rate been affected?
“New York City has experienced an 18% increase in unemployment from January 2020 to March,” said Jill Gonzalez, WalletHub analyst. “This is worse than the average increase of 17%.”