More States Hit Double-Digit Unemployment Rates

By Elizabeth Fairchild, your economic news source

5.1 million drawing unemployment in U.S.

unemploymentIn December, only Michigan had an unemployment higher than 10 percent. In January three more states joined that club: Rhode Island, California and South Carolina. Nationwide, 5.1 million people are collecting state unemployment benefits.

Some economists have expressed concerns that the national unemployment rate would reach 10 percent by the end of the year. Now even more are predicting that could happen.

Top four breakdown

Michigan still has the highest unemployment rate in the country, and that rate hit 11.6 percent in January. Next on the list, with the dubious honor of second-highest unemployment rate, is South Carolina with 10.4 percent. Rhode Island is third with 10.3 percent.

Finally, the most populous state in the country, California, has a 10.1 percent unemployment rate. California is also seeking cash advances from the federal government to help with its huge budget gap.

Unemployment up everywhere — almost

In January, 49 states  and District of Columbia all had higher unemployment rates than they did in December. The lucky state that actually saw a drop in unemployment? Louisiana. Unemployment fell from 5.5 percent in December to 5.1 percent in January.

Of course, the unemployment rate only measures the number of people drawing benefits while actively looking for a job. People who are looking for work but living on some other money source and not drawing state unemployment aren’t counted in the rating. Reports say 12.5 million Americans are looking for jobs.

Some states tapped out

resumeSome states, including New York and California, have run out of unemployment benefits to give. These states have to turn to the federal government for money to continue paying jobless workers. Overall unemployment is the highest in the Midwest. The housing crisis has been the worst in the West.

Wyoming had the lowest January rate of joblessness in the country at 3.7 percent. The national unemployment rate is 8.1 percent.

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