The unemployment situation in New York recently improved, with last week’s claims 6.82% lower than in the previous week but still 1.62% higher than last year, according to WalletHub’s updated rankings for the States Where Unemployment Claims Are Decreasing the Most. 

Unemployment Situation in New York (1=Best; 25=Avg.):

• Overall Rank for New York: 30^th
   
• 20^th – Unemployment Claims Decrease vs. Previous Week
   
• 27^th – Unemployment Claims Decrease vs. Same Week Last Year
   
• 17^th – Cumulative Unemployment Claims in 2024 vs. Same Period Last Year
   
• 44^th – Unemployment Claims per 100,000 People in Labor Force

Expert Commentary

Do you think the hiring dynamic is currently tilted in the employees' favor?

“I do not think we can draw this conclusion, as it depends on many factors. For example, if we look at the medical industry, where we often see a labor shortage, the hiring dynamic is often tilted in the employees' favor; however, for service industries that require relatively low-skilled labor, the hiring dynamic is often tilted in the employer's favor. High-skilled labor, in general, has more leverage in the labor market as they are in higher demand. At the same time, how flexible workers are matters. Those who insist on working in a specific area or during certain periods of the day make the hiring dynamic tilt in the employers' favor.”
Ying Zhen, Ph.D. – Professor; Economics Program Director, Wesleyan College

“As of 2024, the hiring dynamic is still generally tilted in favor of employees, though the situation varies by industry and region. The U.S. labor market remains tight, with unemployment claims at relatively low levels, indicating that jobs are still plentiful, and layoffs are not widespread… The unemployment rate has remained low, which means there are fewer job seekers relative to the number of job openings. This gives employees more leverage in negotiations over wages, benefits, and working conditions… To attract and retain talent, companies have been offering higher wages, better benefits, and more flexible work arrangements. This is especially true in industries facing labor shortages, such as healthcare, technology, and hospitality… There is a growing mismatch between the skills that employers need and those that many job seekers possess. This has led to strong competition for workers with in-demand skills, further tipping the scales in favor of employees… The demand for remote and hybrid work arrangements remains high, and many workers now prioritize flexibility when considering job offers. Companies that fail to offer these options may struggle to attract and retain top talent. However, it is important to note that certain sectors may not experience this dynamic as strongly. For example, industries undergoing technological disruption or facing economic uncertainty might see more balance or even a shift in favor of employers. Overall, while the market continues to favor employees, there are signs that this dynamic could evolve as economic conditions change.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University

With inflation still higher than average, what is your advice for people looking to protect their finances?

“Forming the habit of saving in order to pay off debts is crucial. Refinancing your debts, such as student loans, to secure a lower rate might be a good idea as well. Also, if you are making investments, buying a diversified portfolio is the rule of thumb to spread the risk of inflation.”
Ying Zhen, Ph.D. – Professor; Economics Program Director, Wesleyan College

“When inflation is higher than average, it can erode the purchasing power of money, making it essential to take steps to protect your finances… Monitor your spending closely and adjust your budget to prioritize essential expenses while cutting back on non-essentials… Consider investing in stocks, real estate, and Treasury Inflation-Protected Securities (TIPS) to help your money grow faster than inflation… Negotiate for a raise or explore additional income streams, such as freelance work or a side business, to keep your income in line with rising costs… Focus on paying off high-interest debt and consider refinancing variable-rate loans to fixed-rate options to protect against future interest rate increases… Maintain an emergency fund in a high-yield savings account to ensure you have cash readily available for unexpected expenses. By implementing these strategies, you can better protect your finances from the erosive effects of inflation. Staying proactive and informed will help you maintain your financial stability and purchasing power in an inflationary environment.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University

What are your predictions for the job market as we move forward during 2024 (job gains, hiring confidence, quit rates, etc.)?

“According to the data, the unemployment rate remains relatively low, and employment growth remains positive in 2024. Therefore, there are no unforeseen challenges in the job market in terms of hiring confidence and quit rates as we move forward during 2024. However, as the economy has been in the post-pandemic era for more than a year, employment growth will be at a slower pace than last year. Health care, leisure and hospitality, and government industries remain significant drivers of job growth.”
Ying Zhen, Ph.D. – Professor; Economics Program Director, Wesleyan College

“In the 2024 U.S. Jobs & Hiring Trends Report, experts caution that, while the economic outlook for 2024 is largely positive, whether five trends maintain or accelerate their momentum will directly influence labor market stability throughout the rest of the year… High employer demand for workers will need to continue, either through elevated job postings or worker hoarding… More prime-age workers need to enter the workforce to counteract the long-term drag of an aging population… Quitting will need to maintain its current pace, which is consistent with pre-pandemic rates, though elevated by historical standards… To ease concerns about the labor market fueling inflation, nominal wage growth will need to continue to decrease – but not too much. For workers to maintain and increase purchasing power, wage growth cannot fall below the rate of inflation… Generative AI tools will spread rapidly through the economy, boosting productivity growth and fundamentally changing the labor market.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University