Job Market

Facts About Unemployment That You May Not Have Known

If you’re filing for your unemployment this year, you are not alone. According to the Department of US Labor, periodical claims for unemployment increased by 23,000 in the week of December 12th. That is up from the previous week of 9,000.

Because so many factors contribute to the unemployment increase, including the pandemic, many will have to face the unemployment line this year. To keep from becoming complacent, while searching for your next job, stay focused by doing activities outside your home. Performing outside activity is vital for your health and keeping your focus on job hunting. In the meantime, here are five essential facts about unemployment.

Fact 1. The History of Unemployment Rate.
Thanks in part to the coronavirus, unemployment shot-up. Recently, the Bureau of Labor Statistics suggested the numbers have edged down a little. Still, many businesses closed their doors because of the virus and other factors. Those numbers are not the highest this country has ever faced. As a matter-of-fact, unemployment reached its highest back in 1933 when its unemployment rate went up to a whopping twenty-four percent, and it stayed at fourteen percent from the mid-30s to 1941. It took another leap back into the double digits in the 80s.

Fact 2. States With The Highest Record.
Did you know that Hawaii has the highest unemployment rate in the country with a 15.1 rate? Nevada came in second with a rate of 12.6 and California a third came in with an 11% rate. Again Coronavirus plays a hand in a loss of revenue because of tourism drop. In a report by the Hawaii State Department of Labor for over a year, Hawaii lost over 120, 800 jobs. Hawaii’s high rate climbed during April and stayed at a high-level into May. The statistic given by the state Department of Labor and Industrial Relations has the number of around 23.8% in April, and many of the top economic experts believe that number will probably stay high. Nevada isn’t in any better shape as over 41% of the jobs deal with food and accommodation disappeared. Even though California has increased its job rate to over 140,000 in May, that’s hardly a drop in the bucket considering that its April unemployment record was as high as 16.4%. Rhode Island has also had a hard time with its unemployment rates soaring with almost 3,000 Rhode Island citizens applying for their benefits on October 10th.

Fact 3: Filing Taxes On Unemployment Benefits.
The federal government has had to increase unemployment benefits because of the high unemployment Americans are facing and because of the virus. Since the coronavirus has forced more people out of a job and into the unemployment line, they are finding themselves having to ask many questions about filing taxes on unemployment benefits. When it comes to federal taxes, you will probably have to file taxes through a form called 1099 – G. However, whether you pay state taxes on your benefits depends on where you live. Some states will not have you filing your unemployment benefits for taxes, but others do, and in a few states, you only have to file partially. Residents who live in states like California and Alabama do not pay taxes from unemployment earnings. Alaska, Nevada, Florida, Washington, Wyoming, New Jersey, Pennsylvania, Virginia, South Dakota don’t have to pay taxes to the state on their benefits either. Other states such as Mississippi required taxes from unemployment benefits to their state.

Fact 4. The Effects Unemployment Has On Your Credit.
You may have questions about your credit rating now that you’re unemployed. Questions like will my being unemployed affect my credit rating, or does it even go on my credit rating? You should know that even though your employer will be listed on your credit reports they belong to, your time with your employer does not reflect on your credit score. However, unemployment may affect you negatively now that you’re out of a job, you may have to struggle to meet payments on your credit card.

Fact 5. Learning Frugal Ways During Tough Times And Relieve Stress.
Now that you’re unemployed, you’re going to have to learn how to save money and watch those pennies. Only 18% of the people who live in America could make it off their savings for six months. Over twenty-eight percent of adults don’t have enough savings for an emergency. Those who do, don’t have nearly enough that will last them for three months of their living cost. Over thirty-six million Americans have had to file unemployment, and even though the government has increased the amount by $600 more for those eligible, you will still probably need to cut back on your spending habits. Since it will take time before things get back to normal, you will probably need to set a budget. Setting a budget and making extra money while you draw unemployment benefits to make ends meet will keep you from having to dip into any savings too deep. Seek to earn extra money from part-time gigs. For example, Door Dash’s opportunities have increased because of the coronavirus.

While you’re seeking ways to earn extra cash, remember to take care of your mental health. Studies have proven unemployment may increase anxiety, so performing exercise outside will help increase your mental awareness and diminish the anxiety you may feel over your current situation. An associate professor of Sociology and studying COVID-19 cases says that more people stressed about the virus and being unemployed are feeling pushed toward the breaking point. More Americans feel shut-out and afraid. No one can predict the future with the unemployment rate soaring, but taking care of yourself will combat some of those negative feelings and help improve your self-esteem, and may even improve your chances of finding a job quicker.