Report: West Virginia COVID-19 unemployment situation slightly above average

(The Center Square) – West Virginia’s unemployment recovery from the COVID-19 pandemic has been better than most states, but it still maintains a relatively average rate compared to other states, according to a report from the financial website WalletHub.

The state ranked 21 out of 51 in the report comparing the 50 states and Washington D.C., which listed which states are bouncing back from unemployment increases during the pandemic. The state’s July unemployment rate of 5% is hovering slightly below the national rate, which was 5.4%.

West Virginia’s July 2021 unemployment rate is only 3% higher than its July 2019 unemployment rate, which is low compared to most states. About half of the states had a 30% or higher increase in unemployment. The state also saw a 1% drop in its unemployment rate in July 2021 when compared to January 2020 when all but three states saw an increase.

The state’s unemployment rate also dropped by nearly half from July 2020 to July 2021. Yet, the state did have an increase in non-seasonally adjusted continued unemployment claims, an increase of nearly 32% in July 2021 when compared to July 2019.

West Virginia scored in the top five in two of the main categories: fifth in best recovery from July 2019 and third in best recovery from July 2020. Although the state did better at returning to its earlier numbers, it was brought down in its ranking for still maintaining an average unemployment rate compared to the rest of the country.

In WalletHub’s ranking, 50% of the score was determined by the state’s unemployment rate compared to other states and the other half was determined by its recovery from earlier numbers.

“West Virginia ranks 21st in terms of unemployment rate recovery,” Wallethub Analyst Jill Gonzalez told The Center Square. “The number of unemployed people in July 2021 is almost 1% lower than it was before the pandemic in January 2020 — the third best recovery in the country. Compared to July 2019, the number of unemployed people is 3% higher, making West Virginia the fifth best ranked in this category. Lastly, the number of continued claims in July 2021 versus July 2019 is less than 32% higher — eighth best nationwide.”

Gov. Jim Justice and Republican leadership have been trying to make West Virginia more business friendly over the past year. The House, the Senate and the governor all agreed that the state should abolish the income tax, but none of the three parties could strike an agreement on how it should be done. The state is currently suffering from population decline and an aging population because young people are looking elsewhere for job opportunities.

Nebraska, Utah, Idaho, South Dakota had the best rankings in the report and Hawaii, Nevada, California, New York and Colorado earned the worst rankings.

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