On Wednesday, WalletHub reported that in the Great Lakes states, the percentage of job layoffs is relatively low compared to the rest of the country.
Wisconsin (10th place), Michigan (11th place), Iowa (12th place), Minnesota (14th place) and Illinois (15th place) were among the TOP 15 states with the lowest rates of layoffs in the country.
Using data from the US Bureau of Labor Statistics, it was found that last month Iowa ranked 4th in terms of layoffs — 2.1%. The same indicator was in Vermont, Virginia, Maine, California, Connecticut and Pennsylvania. Lower rates were only in Massachusetts (1.5%), New Jersey (1.8%), the District of Columbia and New York (1.9% each). Along with New Hampshire, Michigan and Wisconsin had a 2.2% layoff rate last month. In Illinois and Minnesota, it was 2.3%. Kentucky had the highest layoff rate last month (3.6%).
Nevertheless, the percentage of layoffs last year in Iowa was 2.73%, which is roughly the same as the state average. New York had the lowest rate (1.8%), and Alaska had the highest (4.24%). Minnesota and Illinois ranked in the top ten for the lowest layoff rates last year with 2.44% and 2.46%, respectively. Wisconsin had 2.48% and Michigan had 2.49%.
The report says that nationwide, the number of vacancies has increased dramatically, and some employers are having problems filling them.
Joshua Rosenblum, professor and head of the Department of Economics at Iowa State University, said in a report that layoffs and early retirement related to the pandemic have contributed to the current labor market tensions. Remote work was a factor influencing employees’ decisions about where to live and how to work, which also led to staff turnover. According to him, employers are struggling to attract workers, and the increase in wages and bonuses for new employees is one of the reasons why employees leave old jobs.
Rosenblum also said that people who have left the labor market can stay away by reducing production, but a strong market attracts young workers and creates opportunities to increase human capital and move forward, which benefits the economy.
“Some workers who have left the workforce may return, but they probably won’t be able to reach the same income level as before,” he said.
Honorary director of the Chicago-Kent College of Law, Henry Perritt, said that people’s savings accumulated during COVID and the high payments associated with COVID helped workers leave the labor market. The reduction of the labor force fuels wage inflation and makes it difficult for employers to provide goods and services. According to him, labor productivity is now the lowest in the history of the United States.