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U.S. Unemployment Rate
The national unemployment rate currently stands at 4.3%, up from 3.5% a year ago. However, unemployment rates vary significantly from state to state. Their rates ranged from a low of 2% to a high of 5.8% in July, the latest data available.
Unemployment Rates by State
States With the Highest Unemployment Rate
Puerto Rico topped the list of the nation’s highest unemployment rates at 5.8%, followed by Washington, D.C., at 5.5% and Nevada at 5.4%.
States With the Lowest Unemployment Rate
South Dakota tallied the nation’s highest unemployment rate at 2%, followed by Vermont at 2.1% and North Dakota at 2.2%.
Unemployment Rate by City
You need to look at local data to get an accurate picture of the job market in your area. The unemployment rate in your city may differ significantly from the national rate.
Take a look at how your city’s unemployment rate stacks up.
Different Measures of Unemployment
The unemployment rate gives a big-picture measure of the labor market. But other measures offer a more detailed job picture.
For example, the Bureau of Labor Statistics (BLS) also measures how many people have been unemployed for 15 weeks or longer, as well as “discouraged workers,” those who want to work but haven’t been able to find a job in the past 12 months.
Methodology
The unemployment rate measures the share of working-age people who are currently unemployed while actively looking for work.
People are excluded from the unemployment rate after four weeks of not seeking work, as are people under 16 years old. Unemployment data is gathered each month by the Census Bureau and the Bureau of Labor Statistics.
What Is the Unemployment Rate?
The unemployment rate is an estimate of the share of job-seeking people who are not currently employed.
Those who are under 16 years old or who have not sought work in the last four weeks are excluded from this figure.
What Does the Unemployment Rate Tell Us About the Economy?
The unemployment rate is a key indicator of the health of the economy. It can signal economic downturns, how likely an inflationary cycle is to continue and what level of consumer spending businesses should expect.
Factors That Affect the Unemployment Rate
The unemployment rate is affected by:
- How many people are working (labor force participation)
- How many people are seeking work (unemployed)
- Job openings, layoffs and other labor supply and demand factors
- Industries’ barriers to entry, like degree or skill requirements
Unemployment Rate vs. Labor Force Participation
Unemployment rate measures the share of job-seeking people who are not employed, while the labor force participation rate measures the share of people who are employed.
The shares of people who are employed, seeking work but not employed (unemployed) and not seeking work add up to 100% of the working-age population.
Frequently Asked Questions (FAQs)
Why do state unemployment rates vary so much?
The unemployment rate can vary among states for many reasons. It can be influenced by the types of industries prevalent in each state and how in-demand those industries are. For instance, states with large tourist and hospitality industries, such as California, saw their unemployment rates spike during Covid-19 lockdowns.
What is a healthy unemployment rate?
A reasonable unemployment rate is between 3% and 5%. Low unemployment means many people are receiving an income, which is good for consumer spending and the economy as a whole. However, if the economy is too hot, with very low unemployment and quickly rising salaries, the additional money in circulation can drive inflation higher.
FAQs
States With the Highest Unemployment Rate
Puerto Rico topped the list of the nation's highest unemployment rates at 5.8%, followed by Washington, D.C., at 5.5% and Nevada at 5.4%. Table with 3 columns and 5 rows.
Which states have the highest unemployment rates? ›
States With the Highest Unemployment Rate
Puerto Rico topped the list of the nation's highest unemployment rates at 5.8%, followed by Washington, D.C., at 5.5% and Nevada at 5.4%. Table with 3 columns and 5 rows.
Where does the United States rank in the unemployment rate chart? ›
The United States ranks 42th in our comparison of 75 countries. A bit surprising is the end if the table: Qatar, Cambodia and Niger have an astonishing unemployment rate below one percent. But as always, statistics like this should be taken with caution. Not every country uses the same definition of unemployment.
Where is the lowest unemployment rate? ›
The countries with the lowest unemployment rates are Qatar, Cambodia, and Niger. A low unemployment rate does not mean a nation's citizens are well-off; the standard of living is determined by GDP per capita.
What is the US unemployment rate right now? ›
The current unemployment rate is 4.2%. Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She is also an authority on student loans. She joined NerdWallet in 2014.
What states have the best economy? ›
Key Takeaways
| Rank | State | Economy Score (0-350) |
|---|
| 1 | Florida | 308 |
| 2 | Texas | 292 |
| 3 | Tennessee | 259 |
| 4 | North Carolina | 256 |
6 more rowsSep 3, 2024
If you look at the states with the highest average weekly unemployment payment, Massachusetts and Hawaii were nearly tied at just under $475 each. Massachusetts offered a whopping $855 per week as its maximum benefit, while Hawaii's maximum payment was $648.
What is a good US unemployment rate? ›
What's the natural rate of unemployment? A reasonable unemployment rate is between 3% and 5%.
What is the lowest unemployment rate in US history? ›
The unemployment rate has varied from as low as 1% during World War I to as high as 25% during the Great Depression.
What US state has the least job opportunities? ›
States with the Lowest Employment Rates
- Alaska. Alaska has an employment rate of 93.9%, the lowest in the United States. ...
- Mississippi. ...
- District of Columbia. ...
- West Virginia. ...
- Louisiana.
In 2023, Eswatini had the highest unemployment rate in the world, at 37.6 percent. Of the 10 countries with the highest unemployment rates, nine were in Sub-Saharan Africa.
What is the black unemployment rate? ›
US Unemployment Rate: Black or African American is at 6.10%, compared to 6.30% last month and 5.30% last year. This is lower than the long term average of 11.43%.
What jobs have the highest unemployment rate? ›
In August 2024, the agriculture and related private wage and salary industry had the highest unemployment rate in the United States, at 11.3 percent. In comparison, self-employed workers, unincorporated, and unpaid family workers had the lowest unemployment rate, at 2.9 percent.
What is the SAHM rule? ›
Sahm is the creator of the recession indicator, the "Sahm rule", which has until now accurately predicted every U.S. recession since 1970. The rule indicated a recession last month after data showed U.S. jobless rate reached 4.3% in July.
What is the unemployment rate in China? ›
In August 2024, the surveyed unemployment rate in urban areas of China ranged at 5.3 percent, up from 5.2 percent in the previous month. During the first half of 2024, unemployment stood at 5.1 percent. The annual unemployment rate in China was 5.2 percent in 2023.
Which cities have the highest unemployment rates? ›
The unemployment rate of the West Midlands Metropolitan County was 6.3 percent in the twelve months to March 2023, which was the highest among England's six metropolitan counties and Greater London. By contrast, Merseyside which includes the major city of Liverpool had the lowest unemployment rate of 3.5 percent.
Where does Texas rank in unemployment? ›
Unemployment Rates for States
| State | July 2024(p) rate | Rank |
|---|
| New Mexico | 4.0 | 34 |
| Delaware | 4.1 | 36 |
| Oregon | 4.1 | 36 |
| Texas | 4.1 | 36 |
49 more rowsAug 16, 2024
The four U.S. states with the highest unemployment rates in 1934 were New Mexico, North Dakota, South Dakota, and Oklahoma. The states that had the lowest unemployment rates that year were Nevada, Rhode Island, Illinois, and California.
What is the white unemployment rate? ›
U.S. Unemployment rate of white people 1990-2023
The unemployment rate of the white labor force in the United States decreased from the previous year to 3.3 percent in 2023. This is compared to a high of 8.7 percent in 2010. The national unemployment rate can be found here.
