New York’s expansion led the US to frivolous claims

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California, a more populous state, was fourth in increased unemployment claims at 2,823.

The state Department of Labor in May reported New York’s unemployment rate stood at 4.4%, down slightly from the previous month. New York City’s jobless rate continued to be higher than the rest of the state that month at 6.2%.

Businesses and state officials are girding for a potential recession as high inflation and gas prices have driven uncertainty in the economy. Meanwhile, New York owes billions of dollars in unemployment insurance debt to the federal government, and an interest rate increase could lead to what in effect would be tax increase for employers in November.

Story Highlights

  • Initial unemployment claims increased by 9,000 applications to 244,000. New York state reported the largest increase in initial claims in the country at 5,165, according to the U.S. Department of Labor.

  • New York’s jobless rate has been slow to decline in the wake of the initial weeks and months of the COVID-19 pandemic when public gathering spaces and businesses were closed.