Unemployment Rate by State



When it comes to unemployment, different parts of the United States are affected in distinct ways by the current economic circumstances. While the national unemployment rate provides a good indicator of how the country is doing as a whole, it can diverge considerably from what you might be facing in your home state. That’s where the state unemployment rate comes into play.

Key Takeaways

  • Unemployment is the state of being unemployed.
  • Unemployment is measured and published by the federal and individual state governments on a monthly basis.
  • A state’s individual unemployment rate makes it easier to determine how different parts of the U.S. are affected by the current economic circumstances.
  • A state’s unemployment rate is measured as part of the Local Area Unemployment Statistics program, run by the U.S. Bureau of Labor Statistics.
  • The unemployment rate is calculated by dividing the number of unemployed individuals in a state by its total labor force.

How Are State Unemployment Rates Determined?

Each state’s unemployment rate is measured as part of the Local Area Unemployment Statistics (LAUS) program, run by the BLS. These figures are updated monthly and are freely available on the BLS’s website, along with historical unemployment data. LAUS also provides employment data for locations in the U.S. other than the 50 states, such as counties, metropolitan areas, and even several cities.

A state’s unemployment rate is a good indicator of its economic strength; however, it’s important to keep in mind how the rate is determined so as not to make an incorrect assumption. The simplest way to calculate the unemployment rate is to divide the number of unemployed individuals in a state by its total labor force.

For example, say State A has a population of 600,000 residents and an unemployment rate of 5%, while State B has a population of 1,200,000 and an unemployment rate of 2.5%. Although State A has a higher unemployment rate, they each have the same number of unemployed workers (i.e, 300,000). So, while it would be correct to say that State A has been hit harder by unemployment, it would be wrong to assume State A has more jobless persons based solely on the rate.

The national unemployment rate in the United States was 3.7% in January 2023. It remained flat from the previous month.

Unemployment in Each State

The unemployment figures listed below are current as of January 2024.

Alabama Unemployment Rate

Alabama’s economy features a wide variety of industries, with one of its most prominent being wood pulp production; however, it’s the growing hospitality, food service, and tourism sector that is the second-largest employer of the state’s non-agricultural workforce. With its median family income falling short of the national average, Alabama is the sixth poorest state in the country—seventh overall when you count Puerto Rico.

  • Historic High: 14.9% (January 1983)
  • Historic Low: 2.1% (August 2023)
  • Current Unemployment: 2.6%

Alaska Unemployment Rate

One of the last states to join the union, Alaska’s abundant natural resources and beautiful geography combine for an economy primarily driven by fishing, tourism, and oil. The latter is especially important for the 49th state, with oil revenues providing almost 85% of its budget. Despite its size, Alaska has the lowest population density of any state in the country.

  • Historic High: 11.9% (May 2020)
  • Historic Low: 3.6% (May 2023)
  • Current Unemployment: 4.5%

Arizona Unemployment Rate

Home to the fifth most populous city in the nation, Arizona was once known best for its agricultural production and mining. These days, the Copper State’s real estate/rental, manufacturing, and healthcare industries represent its biggest economic sectors.

  • Historic High: 13.8% (April 2020)
  • Historic Low: 3.4% (May 2023)
  • Current Unemployment: 4.3%

Arkansas Unemployment Rate

Arkansas is home to the headquarters of several major companies, including Walmart and Tyson Foods. Aerospace and defense, however, make up the Natural State’s biggest export. Other prominent sectors include lumber, technology, and distribution and logistics.

  • Historic High: 10.1% (April 2020)
  • Historic Low: 2.6% (July 2023)
  • Current Unemployment: 3.4%

California Unemployment Rate

Home to Hollywood and Silicon Valley, it may be surprising to learn that California’s biggest leading industry is information, followed by manufacturing and real estate. It also includes the largest agricultural sector in the U.S. The Golden State has the highest population of any state in the country, originally resulting from a population boom caused by the Gold Rush.

  • Historic High: 16.1% (April 2020)
  • Historic Low: 3.8% (August 2022)
  • Current Unemployment: 5.1%

Colorado Unemployment Rate

With its diverse landscape, ranging from massive mountains to breathtaking canyons, it’s no surprise that tourism is one of Colorado’s biggest industries; however, the financial services sector in the Centennial State has a high employment rate, and Denver ranks in the top 10 cities for financial start-ups. This isn’t that startling, given that the cost of doing business in Colorado is well below the national average.

  • Historic High: 11.6% (May 2020)
  • Historic Low: 2.4% (May 2017)
  • Current Unemployment: 3.4%

Connecticut Unemployment Rate

Connecticut has a rather inventive history, with everything from submarines to lollipops getting their start in this state. While advanced manufacturing is in the Constitution State’s blood, it also earned the « Insurance Capital of the World » title for a reason. As the birthplace of America’s first insurance companies, it’s unsurprising that financial services make up over one-fifth of its gross state product.

  • Historic High: 11.7% (May 2020)
  • Historic Low: 2.0% (August 2000)
  • Current Unemployment: 3.8%

Delaware Unemployment Rate

The first state in the union is host to a wide variety of industries, ranging from agriculture to education. The Diamond State may be best known for its contributions via chemical manufacturing, such as in the pharmaceuticals market. As is a trend in many states, however, Delaware’s biggest industry is financial services.

  • Historic High: 13.4% (May 2020)
  • Historic Low: 2.8% (May 1988)
  • Current Unemployment: 4.2%

District of Columbia Unemployment Rate

Although technically a city, the BLS still records a state unemployment rate for the District of Columbia. While it may come as little surprise that the U.S. capital’s workforce is heavily represented in its government sector, the leisure and hospitality industry has actually been the largest and fastest growing sector from 2021 to 2022. It also has the highest population density in the country, when compared to the 50 states.

  • Historic High: 11.3% (March 1983)
  • Historic Low: 3.9% (August 2022)
  • Current Unemployment: 5.1%

Florida Unemployment Rate

The third most populous state in the country, Florida’s tourism industry resulted in 122 million visitors in 2021; however, while the Sunshine State’s beaches may be a beloved destination for vacationing families and students on spring break, Florida’s economy features several other sectors. The growing manufacturing industry alone added 4,500 new jobs in 2022 while the professional, business, and financial services together added over 13,000 new jobs.

  • Historic High: 14.1% (May 2020)
  • Historic Low: 2.4% (June 2006)
  • Current Unemployment: 3.0%

Georgia Unemployment Rate

Georgia’s economy has a long history when it comes to agriculture. Originally heavily reliant on cotton, the Peach State is best known (despite the name) for its peanut production. One in seven Georgians works in agriculture, while the service sector experienced the most annual workforce growth. Real estate, rentals, and leasing is Georgia’s most profitable industry.

  • Historic High: 12.4% (April 2020)
  • Historic Low: 2.9% (May 2022)
  • Current Unemployment: 3.4%

Hawaii Unemployment Rate

Hawaii is, to date, the last territory to become a U.S. state. The dominant income generator in the archipelago is the « visitor sector » which is itself comprised of several industries related to tourism. The biggest of these sectors is hospitality, representing an average workforce of 119,000 in 2023.

  • Historic High: 22.6% (April 2020)
  • Historic Low: 1.9% (December 2017)
  • Current Unemployment: 2.9%

Idaho Unemployment Rate

Although Idaho has long been known as a major agricultural center, its economy is rather diverse. The Gem State became prominent following the California Gold Rush, which led to the development of a robust mining industry. Key sectors in its modern economy range from manufacturing, making up 6% of the state’s workforce, to tourism, which employs over 45,800 people.

  • Historic High: 11.7% (April 2020)
  • Historic Low: 2.5% (May 2022)
  • Current Unemployment: 3.3%

Illinois Unemployment Rate

With the fifth highest GDP in the U.S., it’s no surprise that 34 Fortune 500 companies are based in Illinois. The trade, transportation, and utilities sector employs the most people in the Fortune 500 Prairie State, although manufacturing pulls in the highest profits.

  • Historic High: 18.0% (April 2020)
  • Historic Low: 3.6% (December 2019)
  • Current Unemployment: 4.8%

Indiana Unemployment Rate

Indiana has the world’s second-largest automotive industry, in addition to being home to the « Orthopedics Capital of the World. » Not surprisingly, manufacturing is one of the Hoosier State’s most profitable and fastest-growing sectors, employing about 116,000 workers. Mining mineral resources is also a major industry in Indiana, most notably the 36 million tons of coal collected annually.

  • Historic High: 16.8% (April 2020)
  • Historic Low: 2.8% (April 2022)
  • Current Unemployment: 3.6%

Iowa Unemployment Rate

As the state with the highest concentration of agricultural equipment operator employment, it’s easy to think of Iowa as primarily driven by farming. The Hawkeye State is the largest producer of corn, pork, and eggs in the U.S., producing one-fourteenth of the country’s food supply; however, Iowa’s biggest industries in terms of employment are leisure and hospitality; trade, transportation, and warehousing; and manufacturing.

  • Historic High: 10.9% (April 2020)
  • Historic Low: 2.3% (April 2022)
  • Current Unemployment: 3.2%

Kansas Unemployment Rate

Although the trade, transportation, and utilities sector is Kansas’ biggest sector in terms of employment, education & health services are right behind it. As the production site of many B-29 and B-52 bombers in the 1940s and 1950s, Kansas remains a powerhouse in the aerospace and defense industries today. Other prominent industries include biosciences, which employs more than 16,000 people, and renewable energy. Kansas is second in the country for wind energy potential.

  • Historic High: 12.4% (April 2020)
  • Historic Low: 2.4% (April 2022)
  • Current Unemployment: 2.8%

Kentucky Unemployment Rate

Kentucky is the top producer of cars, light trucks, and SUVs per capita; its automotive sector employs more than 100,000 people. That said, the Bluegrass State is probably best known for its bourbon, given that it provides 95% of the world’s bourbon supply; however, the food and beverage industry only employs 57,000 people, compared to over 250,000 working in the overall manufacturing sector.

  • Historic High: 16.7% (April 2020)
  • Historic Low: 3.7% (April 2023)
  • Current Unemployment: 4.3%

Louisiana Unemployment Rate

Louisiana’s biggest industries are well-suited to its location and its abundant natural resources. The Pelican State is ranked second in crude oil, with more than 90% of U.S. oil rigs located off its coast, and third in natural gas production. Louisiana’s shipbuilding sector is unique with many of the ships produced being oil and gas rigs.

  • Historic High: 13.5% (April 2020)
  • Historic Low: 3.3% (October 2023)
  • Current Unemployment: 3.7%

Maine Unemployment Rate

The state of Maine is estimated to be 90% woodland, so, unsurprisingly, lumber became a major industry. Although its prominence has diminished somewhat as competition has risen in other parts of the U.S., forestry still accounts for almost 14,000 jobs, as of 2022. Education and health services make up the biggest employers in the Pine Tree State, followed closely by trade, transportation, and utilities.

  • Historic High: 9.4% (May 2020)
  • Historic Low: 2.4% (July 2023)
  • Current Unemployment: 3.2%

Maryland Unemployment Rate

Maryland has a lot to brag about: The Free State is ranked first in median household income in the U.S. and has a AAA rating from S&P Global, Moody’s, and Fitch ratings. Perhaps most impressive is that Maryland’s government sector has the highest percentage of employed persons per capita of any state. Maryland also features a $57.5 billion military industry, along with $17 billion in federal obligations for research and development.

  • Historic High: 9.0% (April 2020)
  • Historic Low: 1.6% (September 2023)
  • Current Unemployment: 1.9%

Massachusetts Unemployment Rate

Although Massachusetts was once best known for agriculture and maritime trading, its modern economy revolves heavily around the health service industry, in addition to education services. The healthcare and social assistance sector has the highest number of employed persons in the Bay State, at nearly 760,000. The second largest, educational service workers are about 25% lower than that number.

  • Historic High: 16.9% (April 2020)
  • Historic Low: 2.5% (July 2023)
  • Current Unemployment: 3.2%

Michigan Unemployment Rate

Michigan, the headquarters for Ford and Chevrolet, was once a major manufacturing state in terms of employment. Detroit was Motown for cars before it became Motown for music. Although nearly 19% of North American autos are still produced in the Great Lake State, a majority of Michigan’s workforce is now in the healthcare sector. Despite all this, manufacturing remains Michigan’s most profitable industry.

  • Historic High: 22.6% (April 2020)
  • Historic Low: 3.2% (February 2000)
  • Current Unemployment: 4.3%

Minnesota Unemployment Rate

The manufacturing sector is responsible for the largest portion of Minnesota’s GDP, 14% of roughly $350 billion. The North Star State—home base of the world-famous Mayo Clinic—is a leader in the U.S. healthcare industry, and has the 8th highest concentration of healthcare services jobs in the country.

  • Historic High: 11.1% (May 2020)
  • Historic Low: 2.3% (April 2022)
  • Current Unemployment: 2.9%

Mississippi Unemployment Rate

Mississippi’s biggest claim to fame is likely its agricultural industry, which employs 17.4% of its population. That being said, the industries in Mississippi with the most employed persons are the federal government and trade, transportation, and utilities, each employing about the same amount of people.

  • Historic High: 15.6% (April 2020)
  • Historic Low: 3.0% (July 2023)
  • Current Unemployment: 3.3%

Missouri Unemployment Rate

A uniquely diverse economy, the Show-Me State boasts advancements in everything from biosciences to energy solutions to information technology. Manufacturing alone accounts for almost 12% of the state’s GDP. Along with the seventh largest highway system, Missouri also has the largest waterway system, providing opportunities for trade and transportation that much of the country can’t match. Missouri is also the only state that hosts two Federal Reserve banks.

  • Historic High: 11.4% (April 2020)
  • Historic Low: 2.1% (June 2022)
  • Current Unemployment: 3.3%

Montana Unemployment Rate

Montana’s trade, transportation, and utilities sector is its biggest employer, followed relatively closely by the government. Despite representing less than 6% of the Treasure State’s workforce, the financial services sector is responsible for the largest share of its GDP.

  • Historic High: 11.9% (April 2020)
  • Historic Low: 2.3% (May 2023)
  • Current Unemployment: 3.2%

Nebraska Unemployment Rate

The « breadbasket of the world » is responsible for generating $10.6 billion worth of beef annually—easy to do when your cattle outnumber your citizens by three to one. Nebraska’s status as the Cornhusker State is also well-earned; it’s the third-largest producer of corn in the U.S. Even so, the health and medical services sector is a leading employer of the state and generates millions for the economy.

  • Historic High: 8.1% (April 2020)
  • Historic Low: 1.9% (June 2023)
  • Current Unemployment: 2.3%

Nevada Unemployment Rate

Although the Silver State may be better known for Las Vegas’s casinos, Nevada originally got its start as a major mining hub. That said, the Entertainment Capital of the World is responsible for employing roughly 84% of the state’s workforce, with casino hotels and restaurants as the biggest employers. Nevada achieved the highest state unemployment rate in the country’s history in 2020 as a result of the coronavirus outbreak.

  • Historic High: 30.6% (April 2020)
  • Historic Low: 3.8% (February 1999)
  • Current Unemployment: 5.4%

New Hampshire Unemployment Rate

New Hampshire has a long history as a manufacturing state, specifically with the production of paper and grain. As the use of mills began to decline over the 20th century, the Granite State turned to more traditional manufacturing. Although modern manufacturing has become far more high-tech, it remains the biggest sector of New Hampshire’s economy.

  • Historic High: 16.0% (April 2020)
  • Historic Low: 1.7% (July 2023)
  • Current Unemployment: 2.5%

New Jersey Unemployment Rate


New Jersey’s biggest industry by employment is leisure, hospitality, and retail, which accounts for roughly 18% of the Garden State’s workforce, though a significant portion of retail employees works seasonal or part-time. Second is healthcare, which has continued to grow ever since 1990.

  • Historic High: 15.3% (May 2020)
  • Historic Low: 3.0% (August 2022)
  • Current Unemployment: 4.8%

New Mexico Unemployment Rate

Although New Mexico is no longer thought of as a mining state, the oil and gas industry still pulled in $13.9 billion in revenue in the 2023 fiscal year. However, mining only represents a small portion of the workforce, with the government sector employing more than the private sector. The federal government has some installations in the Land of Enchantment, including the Los Alamos National Laboratory and three Air Force bases.

  • Historic High: 10.5% (March 1983)
  • Historic Low: 3.4% (August 2022)
  • Current Unemployment: 4.0%

New York Unemployment Rate

If you’ve either visited the Big Apple or called it home, it’s easy to think everyone in the U.S. lives there; however, although NYC does have the largest population of any U.S. city, New York itself is only the fourth most populous state. Even so, many significant industries in N.Y.—such as financial services—are based primarily in the Big Apple. Regarding the latter, NYC is the home of Wall Street and the New York Stock Exchange, currently the world’s largest stock market.

  • Historic High: 16.6% (May 2020)
  • Historic Low: 3.7% (June 2019)
  • Current Unemployment: 4.5%

North Carolina Unemployment Rate

Formerly an agricultural state, North Carolina’s economy was heavily industrialized after the Civil War. Much of this remains the case today. N.C.’s famous furniture manufacturers and High Point Market trade show make it still the « Furniture Capital of the World, » and its aerospace industry is built upon the legacy of the Wright brothers. N.C. also features the third-largest financial center in the U.S. and the second-fastest growing IT sector in the country.

  • Historic High: 14.2% (April 2020)
  • Historic Low: 3.1% (March 1999)
  • Current Unemployment: 3.5%

North Dakota Unemployment Rate

Approximately 90% of North Dakota is made up of farms and ranches, a factor that allows agriculture to be the state’s biggest economic contributor and responsible for one-fourth of its workforce. The Roughrider State is one of the few states where the advanced manufacturing sector has grown; most have seen their industry shrink over time.

  • Historic High: 8.7% (April 2020)
  • Historic Low: 1.9% (November 2023)
  • Current Unemployment: 1.9%

Ohio Unemployment Rate

Ohio was once the second-largest producer of steel in the U.S. While manufacturing is still a significant employer in the Buckeye State’s modern economy, trade, transportation, and utilities currently hold the biggest share of the workforce. Ohio is also fourth among the ranks of states that receive the largest individual share of GDP from the manufacturing sector.

  • Historic High: 16.4% (April 2020)
  • Historic Low: 3.3% (July 2023)
  • Current Unemployment: 3.7%

Oklahoma Unemployment Rate

Trade, transportation, and utilities make up the largest share of Oklahoma’s GDP, followed closely by the government, mining, finance, and professional and business services. Harvested oil and gas contribute to the Sooner State’s energy sector; Oklahoma is the third biggest producer of natural gas in the country. Outside of traditional energy, 40% of Oklahoma’s electricity is now generated from renewable sources, such as wind and solar.

  • Historic High: 12.5% (April 2020)
  • Historic Low: 2.7% (July 2023)
  • Current Unemployment: 3.4%

Oregon Unemployment Rate

Oregon is far more dependent on trade than other parts of the U.S., with most of its exports going to other states rather than foreign countries. Outside of trade, healthcare and education represent the biggest employment sector in the Beaver State. Additionally, Oregon has a larger percentage of its workforce employed in the clean energy sector than any other state.

  • Historic High: 13.7% (April 2020)
  • Historic Low: 3.4% (August 2023)
  • Current Unemployment: 3.7%

Pennsylvania Unemployment Rate

Over a fifth of Pennsylvania’s population works in healthcare, which makes it the largest employer in the state. The Keystone State’s history in the healthcare industry began with the founding of the first hospital in the U.S. Pennsylvania can also be counted among the ranks of states where the manufacturing sector is the most profitable.

  • Historic High: 16.2% (April 2020)
  • Historic Low: 3.4% (November 2023)
  • Current Unemployment: 3.5%

Rhode Island Unemployment Rate

Following the American Revolution, Rhode Island had a prominent manufacturing sector. Deindustrialization eventually led to the decline of manufacturing, which was slowly replaced with a more service-based economy. Healthcare and education is the dominant employer in Rhode Island.

  • Historic High: 18.0% (April 2020)
  • Historic Low: 2.6% (September 2023)
  • Current Unemployment: 3.2%

South Carolina Unemployment Rate

Trade, transportation, and utilities make up the largest sector in South Carolina by employment, comprising more than 440,000 jobs. Despite this, finance, insurance & real estate is the most profitable industry in the Palmetto State, in terms of GDP. While not the largest workforce, manufacturing in South Carolina still accounts for approximately 263,000 employees.

  • Historic High: 12.1% (December 2009)
  • Historic Low: 2.4% (September 2019)
  • Current Unemployment: 3.0%

South Dakota Unemployment Rate

Finance, insurance, and real estate are the most prominent sectors in the South Dakota economy, though most of the state’s workforce is employed in the government and health and education services sectors. Rebounding from the pandemic, the tourism industry in Mount Rushmore State has an impact of $4.7 billion in 2022, due to its many notable attractions, including that iconic carved mountain. The state also identified three supersectors that are expected to grow over the next few years: Trade, Transportation and Utilities, Professional and Business Services, and Leisure and Hospitality Services.

  • Historic High: 8.8% (April 2020)
  • Historic Low: 1.8% (June 2023)
  • Current Unemployment: 2.0%

Tennessee Unemployment Rate

As is the case in a couple of other states, Tennessee’s biggest employers are the trade, transportation, and utilities sectors. The sector has also seen the most job growth in the last few years, followed by mining, logging, and construction; financial activities; and professional and business services. Combined, manufacturing, real estate, and healthcare services sectors account for almost 40% of GDP in the Volunteer State.

  • Historic High: 15.8% (April 2020)
  • Historic Low: 3.1% (August 2023)
  • Current Unemployment: 3.5%

Texas Unemployment Rate

As is probably no surprise, the energy sector is responsible for an estimated nine percent of the GDP in Texas, generating $172 billion in 2021. The Lone Star State is the biggest energy producer in the country, and it even has its power grid. All the same, manufacturing employs far more people than the traditional energy industry, at approximately 906,600.

  • Historic High: 12.8% (April 2020)
  • Historic Low: 3.4% (June 2019)
  • Current Unemployment: 4.0%

Utah Unemployment Rate

The trade, transportation, and utilities industry make up the largest share of the workforce, though the government sector is close behind. The Beehive State has a rather diverse economy; it was formerly driven by agriculture, but this began to shrink during the 20th century. Meanwhile, aerospace and manufacturing have grown into rising industries in Utah’s economy.

  • Historic High: 10.0% (April 2020)
  • Historic Low: 2.2% (May 2022)
  • Current Unemployment: 2.8%

Vermont Unemployment Rate

Vermont’s major employer is the agricultural sector. Over $1 billion of the Green Mountain State’s farm income is derived from dairy products, and 80% of its agricultural sector is actually comprised of dairy farms and production. As is often the case, the financial services sector is responsible for a substantial share of Vermont’s economy.

  • Historic High: 14.0% (April 2020)
  • Historic Low: 1.8% (August 2023)
  • Current Unemployment: 2.2%

Virginia Unemployment Rate

Virginia’s diverse geography has allowed a wide variety of key industries to crop up. The Mother of States features the largest data center market in the U.S., the third-largest port on the East Coast, and the highest concentration of tech workers in the country.

  • Historic High: 12.0% (April 2020)
  • Historic Low: 2.1% (November 2000)
  • Current Unemployment: 3.0%

Washington Unemployment Rate

The birthplace of Amazon and Microsoft has the highest share of its workforce in the information and communication technology sector. The Evergreen State’s second-largest employer is the government, particularly in military and defense, and it has the sixth-largest number of active duty personnel. Even so, the information sector still makes up the biggest share of Washington’s GDP.

  • Historic High: 16.6% (April 2020)
  • Historic Low: 3.6% (September 2023)
  • Current Unemployment: 4.2%

West Virginia Unemployment Rate

Following the Reconstruction Era, West Virginia’s economy revolved heavily around its abundant natural resources and growing extraction industry. Coal had a particularly prominent place in the early West Virginian economy, and the state remains the second-largest coal producer in the U.S. In 1983, West Virginia reached the highest state unemployment rate in the country’s history, before the coronavirus outbreak.

  • Historic High: 18.4% (March 1983)
  • Historic Low: 3.3% (June 2023)
  • Current Unemployment: 4.3%

Wisconsin Unemployment Rate

Trade, transportation, and utilities are the biggest employers in Wisconsin, with manufacturing fairly close behind it. The Badger State earned $23.3 billion in 2022 exporting manufactured goods, supporting 470,000 jobs, according to the Wisconsin Economic Development Corporation. Although manufacturing is also responsible for the largest percentage of the state’s GDP, real estate is close behind.

  • Historic High: 14.1% (April 2020)
  • Historic Low: 2.4% (May 2023)
  • Current Unemployment: 3.3%

Wyoming Unemployment Rate

Wyoming is another state where natural resources play a critical role, making mining one of its key industries. The Equality State also pulls in a noteworthy amount of revenue from tourism, thanks to its many national parks. Wyoming is currently the least populous state in the country.

  • Historic High: 9.1% (January 1987)
  • Historic Low: 2.3% (May 1979)
  • Current Unemployment: 3.0%

What Do Unemployment Rates Tell Us?

The unemployment rate measures what percent of the labor force is out of work; however, it is a lagging indicator. It rises or falls based on changing economic conditions and is not a forward-looking indicator.

What Happens If the Unemployment Rate Is High?

High unemployment rates suggest the economy is not creating or supporting enough jobs for people willing to work.

How Does the Unemployment Rate Affect Everyone?

The unemployment rate, if high, suggests individuals are having a difficult time finding jobs. Unemployment can negatively affect the economy and households; particularly, purchasing power and disposable income will decline. This can put negative pressure on the economy and lead to consumer spending reductions and decreased output by companies.

The Bottom Line

Unemployment is the state of being unemployed. In the United States, it is measured at several different levels. The federal government measures and releases the national unemployment rate on a monthly basis. But each individual state also does the same with its own unemployment rate. This is a great indicator of the economy of each state. If you want to figure out how to determine your state’s unemployment rate, divide the total number of unemployed people by the total work force.

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