US unemployment stands at 4.4% overall, but this rate varies significantly across states. States such as California (5.5%), New Jersey (5.4%), Nevada (5.2%), Oregon (5.2%), and Michigan (5.0%) report unemployment rates well above the US unemployment rate of 4.4%. These states are under more pressure due to layoffs, industry slowdowns, and higher living costs.
On the other side, states like South Dakota (2.1%), Hawaii (2.2%), North Dakota (2.6%), and Vermont (2.6%) have some of the lowest unemployment rates in the country.
Key Takeaways
- US unemployment remains uneven, with several major states above the national rate of 4.4%.
- States with stable industries and smaller populations tend to have lower unemployment rates.
US Unemployment by State
The rate of unemployment differs greatly across states within the US, even when the country’s economy appears to be performing well. The state-level US unemployment data comes from the U.S. Bureau of Labor Statistics (BLS).
| Rank | State | Unemployment Rate (%) |
|---|---|---|
| 1 | District of Columbia | 6.5% |
| 2 | California | 5.5% |
| 3 | New Jersey | 5.4% |
| 4 | Nevada | 5.2% |
| 4 | Oregon | 5.2% |
| 6 | Michigan | 5.0% |
| 7 | Delaware | 4.9% |
| 8 | Alaska | 4.7% |
| 8 | Kentucky | 4.7% |
| 8 | Massachusetts | 4.7% |
| 11 | South Carolina | 4.6% |
| 11 | Washington | 4.6% |
| 13 | New York | 4.5% |
| 13 | Ohio | 4.5% |
| 15 | Illinois | 4.4% |
| 15 | West Virginia | 4.4% |
| 17 | Arizona | 4.3% |
| 17 | Louisiana | 4.3% |
| 17 | Rhode Island | 4.3% |
| 20 | Florida | 4.2% |
| 20 | Maryland | 4.2% |
| 20 | New Mexico | 4.2% |
| 20 | Pennsylvania | 4.2% |
| 20 | Texas | 4.2% |
| 25 | Arkansas | 4.1% |
| 26 | Connecticut | 4.0% |
| 26 | Minnesota | 4.0% |
| 26 | Missouri | 4.0% |
| 29 | Colorado | 3.9% |
| 30 | Kansas | 3.8% |
| 30 | Mississippi | 3.8% |
| 30 | North Carolina | 3.8% |
| 33 | Idaho | 3.7% |
| 33 | Indiana | 3.7% |
| 35 | Tennessee | 3.6% |
| 35 | Utah | 3.6% |
| 37 | Georgia | 3.5% |
| 37 | Iowa | 3.5% |
| 37 | Oklahoma | 3.5% |
| 37 | Virginia | 3.5% |
| 41 | Wyoming | 3.4% |
| 42 | Montana | 3.3% |
| 43 | Maine | 3.2% |
| 44 | Wisconsin | 3.1% |
| 45 | Nebraska | 3.0% |
| 45 | New Hampshire | 3.0% |
| 47 | Alabama | 2.7% |
| 48 | North Dakota | 2.6% |
| 48 | Vermont | 2.6% |
| 50 | Hawaii | 2.2% |
| 51 | South Dakota | 2.1% |
Source: Bureau of Labor Statistics (BLS)
US States With High Unemployment Rates
Several US states currently report unemployment rates well above the national US unemployment average of 4.4%. The District of Columbia (D.C.) has consistently had the highest unemployment rate in the United States compared with all 50 states.
California leads all states with an unemployment rate of 5.5%. The state has seen layoffs in technology, entertainment, and real estate. High housing costs and rising business expenses have also made hiring more difficult for employers, which keeps US unemployment elevated in the state.
New Jersey, with an unemployment rate of 5.4%, is also facing job market pressure. The hiring pace has slowed in key sectors, including finance, as well as pharmaceuticals, which cover a larger employment base in the region.
Following California and New Jersey, Nevada and Oregon are among the U.S. states with the highest unemployment rates, both around 5.2 percent. This places them well above the US national average of 4.4%.
Some of the most well-known U.S. states and regions continue to record unemployment rates higher than those of many smaller states. New York, with an unemployment rate of 4.5%, remains slightly above the national US unemployment rate of 4.4%. Washington, D.C., has the highest unemployment rate in the country at 6.5%.
Which U.S. States are in Recession
US States With Low Unemployment Rates
South Dakota, with an unemployment rate of 2.1%, has the lowest jobless rate in the country. Hawaii also has a very low unemployment rate at 2.2%, mainly due to the tourism sector recovery after the pandemic.
States like North Dakota and Vermont, both at 2.6%, also have some of the lowest unemployment rates in the U.S. These states rely on sectors such as energy, healthcare, and agriculture, which help keep unemployment low even during slower economic periods.
Average US Unemployment Rate
The average unemployment rate in the US stands at 4.4%, slightly higher than pre-pandemic levels. In general, unemployment in the US stays between 3 and 4% during normal economic conditions.
The highest unemployment rate in recent US history took place in April 2020. In that month, it surged to 14.8% as the COVID-19 pandemic led to widespread business closures and millions of lost jobs in only a few short weeks. Since then, the labor market has regained previous losses, although recovery has occurred very unevenly among states.
Conclusion
US unemployment data highlights that while the overall US unemployment rate is at 4.4%, some of its states have an unemployment rate way above 4.4%. States with a diversified economy and stable industries usually experience low rates of unemployment. On the other hand, states overly exposed to technology, tourism, and manufacturing usually experience higher rates of unemployment.
