States with highest increase in unemployment claims

WalletHub has published a report identifying the U.S. states that experienced the largest increases in unemployment claims during August.

The personal finance company WalletHub has published a report identifying the U.S. states that experienced the largest increases in unemployment claims during August, comparing data week over week and with the same period in the previous year.

Throughout 2025, unemployment in the United States has shown fluctuations, including a slight overall increase. More recently, however, the labor market continues to show signs of instability. In the week of August 25, new unemployment claims rose by 3.5% compared to the previous week.

According to WalletHub data, approximately 7.2 million Americans are currently unemployed. In light of these figures, the company analyzed a series of key statistics to provide a more comprehensive picture of the current employment situation in the country.

States with the largest weekly increases in unemployment

To identify the states with the most significant increases in unemployment claims, WalletHub compared all 50 states and the District of Columbia, focusing on changes observed during several key reference weeks. The analysis also factored in the number of claims per 100,000 people in the labor force, offering a more accurate perspective adjusted for state population size.

Using these indicators, including weekly change, year-over-year comparison, cumulative variation in 2025, and current unemployment rate, WalletHub created an overall ranking. Each metric carried a different weight in the final assessment.

The states that recorded the largest increases in unemployment claims, according to WalletHub, are:

Connecticut
Tennessee
District of Columbia
Nebraska
Illinois
Oregon
Virginia
Mississippi
New York
California

Connecticut ranked first overall for the largest increase in unemployment claims. Tennessee, Connecticut, and Nebraska showed the sharpest weekly increases, as well as the most significant jumps compared to the same week in 2024.

States with the smallest weekly increases in unemployment

In contrast, Vermont, New Hampshire, and Kentucky saw the smallest weekly increases, while North Dakota, Massachusetts, and Wisconsin showed the smallest year-over-year variations.

Based on WalletHub’s metrics, the states with the lowest weekly increases include:

New Hampshire
Wisconsin
Vermont
Alabama
Indiana
Montana
Arizona
Arkansas
Georgia
Florida

New Hampshire ranked last (51st) on the list, indicating the smallest increase in unemployment claims, while Florida came in at 42nd, according to WalletHub’s analysis.

In response to the report, some experts caution that unemployment is more likely to continue rising in the coming months as the labor market weakens.

Newsweek featured insights from Harry Holzer, a professor of public policy at Georgetown University, who noted that while employers have significantly slowed down hiring, mass layoffs have not yet occurred in most sectors. However, he warned that this could change if the current trend persists.