Unemployment claims in New York have fallen slightly week-over-week, but they remain significantly higher than this time last year, according to a newly updated report from WalletHub.
The personal finance website ranked states based on the growth of unemployment claims using U.S. Department of Labor data. New York ranked 20th overall for states where unemployment claims are rising the most.
Breaking down the numbers
Here’s where New York stands in several key unemployment metrics:
- 23rd for unemployment claim increase vs. the previous week
- 12th for unemployment claim increase vs. the same week last year
- 30th for cumulative claims in 2025 vs. the same period in 2024
- 13th for unemployment claims per 100,000 people in the labor force
The state saw a 1.66% drop in claims compared to the previous week. However, claims are still 16.71% higher than the same period last year, signaling ongoing instability in the labor market.
Full rankings and state-by-state data are available at WalletHub’s official report.
What experts are saying about the job market
Economists say the labor market is facing mixed signals in 2025. While some indicators suggest steady conditions, others point to tightening by employers.
“Hiring has definitely shifted in favor of employers,” said Aaron L. Jackson, Ph.D., professor at Bentley University. “Job openings are down, remote work is being rolled back, and wage growth has moderated.”
David J. Kuenzel, associate professor at Wesleyan University, offered a more optimistic take:
“In historical comparison, the U.S. labor market is currently tighter and tilted more in favor of employees than during most periods.”
What’s driving New York’s unemployment trend?
Several factors could be contributing to New York’s elevated claims:
- Economic volatility: Shifts in technology, AI, and remote work policies
- Government layoffs: Budget constraints affecting state and municipal jobs
- Inflation pressure: Leading to reduced consumer demand in some sectors
What happens next?
Experts remain cautious in their forecasts for the remainder of 2025. Kuenzel expects conditions to “hold fairly steady,” while Jackson warns of potential softness in the job market later this year.
Workers and job seekers are advised to:
- Monitor weekly unemployment trends
- Be cautious with major career changes
- Consider upskilling or reskilling for changing industries
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