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With certain businesses reopening all across the country in an effort to reverse some of the nearly 41 million job losses caused by the coronavirus pandemic, WalletHub today released updated rankings for the Cities with the Biggest Increases in Unemployment Rates Due to COVID-19, as a follow-up to our report on the States Hit Most by Unemployment Claims.
This report uses new data from the Bureau of Labor Statistics, which recently disclosed that it erroneously didn’t count many workers on temporary layoffs as unemployed. Therefore, the real unemployment rate may be around 33 percent higher than reported, and our report includes both the official rate and an “adjusted” rate based on this error.
Below, you can see highlights from the report, along with a WalletHub Q&A.
| Most Affected Cities | |
| 1. Las Vegas, NV | 11. Toledo, OH |
| 2. North Las Vegas, NV | 12. Cleveland, OH |
| 3. Detroit, MI | 13. Gulfport, MS |
| 4. Henderson, NV | 14. Charleston, SC |
| 5. Grand Rapids, MI | 15. Wichita, KS |
| 6. Burlington, VT | 16. Orlando, FL |
| 7. Honolulu, HI | 17. Garden Grove, CA |
| 8. Fort Wayne, IN | 18. Reno, NV |
| 9. South Burlington, VT | 19. Nashville, TN |
| 10. Manchester, NH | 20. New Orleans, LA |
To view the full report and your city’s rank, please visit: https://wallethub.com/edu/cities-with-biggest-increases-in-unemployment-rates-due-to-covid-19/73647/
WalletHub Q&A
Will promoting social distancing in public help cities’ unemployment rates recover more quickly?
“Promoting social distancing in public will have a positive impact on the recovery of cities’ unemployment rates. WalletHub’s research shows that around only around 30 percent of consumers would be comfortable shopping in person without protective measures, but another 47 percent would be comfortable if various protections were put in place, like mandatory mask-wearing or plexiglass shields at the register,” said Jill Gonzalez, WalletHub analyst. “Social distancing while reopening inspires greater consumer confidence, which in turn will lead to more people shopping and greater cash flow to businesses, enabling them to start hiring again sooner.”
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.”
Why have certain cities experienced greater rises in unemployment than others during the coronavirus pandemic?
“Certain cities have experienced greater rises in unemployment than others because their industries were highly affected by the social distancing policies put in place due to the coronavirus pandemic,” said Jill Gonzalez, WalletHub analyst. “Cities that rely heavily on travel and tourism have seen those industries closed for months, which has naturally led to greater layoffs than in cities where the main industries are the production of essential, non-durable goods like food and medical equipment.”
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 a 281% increase in unemployment from January 2020 to April,” said Jill Gonzalez, WalletHub analyst. “This is better than the average increase of 288%. New York City’s overall unemployment rate is 14.6%, compared to the average of 14.7%.”
