September’s jobs report showed a slowdown in growth. The economy gained 263,000 nonfarm payroll jobs, down from 315,000 the previous month. In September, there were notable gains in sectors including health care and leisure and hospitality.
Now, the U.S. unemployment rate sits at 3.5%. We have come a long way from the nearly historic high of 14.7% in April 2020, due to a combination of vaccinations and states removing restrictions. However, inflation and the potential of a recession threaten to push the unemployment rate higher again if Federal Reserve rate increases are not able to stave them off.
In order to take stock of how unemployment rates are changing throughout the U.S., WalletHub compared the 50 states and the District of Columbia based on six key metrics that compare unemployment rate statistics from the latest month for which data is available (September 2022) to key dates in 2022, 2021, 2020 and 2019.
Main Findings
Unemployment Rate Changes by State
| Overall Rank | State | Unemployment Rate (September 2022) | Change in Unemployment (September 2022 vs August 2022) | Change in Unemployment (September 2022 vs September 2021) | Change in Unemployment (September 2022 vs September 2020) | Change in Unemployment (September 2022 vs September 2019) | Not Seasonally Adjusted Continued Claims (September 2022 vs August 2022) |
|---|---|---|---|---|---|---|---|
| 1 | Minnesota | 2.0% | 5.9% | -36.1% | -68.3% | -44.1% | -10.5% |
| 2 | North Dakota | 2.2% | -1.8% | -30.1% | -60.5% | 7.0% | -41.0% |
| 3 | Vermont | 2.1% | 3.0% | -30.8% | -51.6% | -20.4% | -32.6% |
| 4 | New Hampshire | 2.2% | 6.9% | -31.5% | -63.8% | -20.1% | -32.9% |
| 5 | Missouri | 2.4% | -2.1% | -39.7% | -59.4% | -23.0% | -28.7% |
| 6 | Florida | 2.5% | -8.9% | -34.0% | -70.0% | -17.1% | -7.1% |
| 7 | Utah | 2.1% | 1.9% | -12.7% | -49.2% | -10.8% | -3.3% |
| 8 | Virginia | 2.6% | -0.8% | -22.8% | -58.7% | -3.1% | -23.8% |
| 9 | South Dakota | 2.3% | 0.9% | -22.9% | -40.1% | -15.6% | -6.2% |
| 10 | Nebraska | 2.2% | 5.7% | -8.7% | -31.6% | -28.9% | -18.9% |
| 11 | New Jersey | 3.3% | -18.0% | -43.1% | -59.4% | -6.3% | -18.3% |
| 12 | Alabama | 2.6% | 1.1% | -17.3% | -57.2% | -10.4% | -17.4% |
| 13 | Rhode Island | 3.1% | 8.0% | -42.7% | -67.9% | -15.3% | -33.2% |
| 14 | Iowa | 2.7% | 4.0% | -32.4% | -41.8% | -3.2% | -20.1% |
| 15 | Georgia | 2.8% | -1.0% | -18.9% | -53.2% | -17.9% | -14.4% |
| 16 | Kansas | 2.6% | 3.4% | -13.2% | -49.1% | -15.8% | -9.0% |
| 17 | Louisiana | 3.4% | -4.9% | -29.3% | -61.7% | -28.8% | -13.4% |
| 18 | Massachusetts | 3.4% | -4.1% | -33.2% | -65.3% | 12.1% | -20.9% |
| 19 | Idaho | 2.8% | 4.8% | -13.1% | -38.1% | -0.9% | -24.9% |
| 20 | Indiana | 2.8% | 1.7% | -4.5% | -54.2% | -13.0% | -6.7% |
| 21 | Montana | 2.9% | 3.4% | -6.8% | -39.6% | -17.0% | -20.9% |
| 22 | Wyoming | 3.3% | 4.6% | -21.3% | -41.9% | -19.0% | -20.1% |
| 23 | Hawaii | 3.5% | -13.1% | -26.7% | -73.1% | 71.6% | -5.9% |
| 24 | Wisconsin | 3.2% | 3.7% | -5.1% | -43.3% | -2.9% | -27.6% |
| 25 | Mississippi | 3.6% | 1.6% | -26.2% | -47.8% | -36.2% | -16.8% |
| 26 | Maine | 3.3% | 5.1% | -27.7% | -25.0% | 11.9% | -23.4% |
| 27 | California | 3.9% | -4.8% | -38.7% | -61.3% | -5.6% | -5.3% |
| 28 | South Carolina | 3.2% | 1.2% | -15.6% | -45.0% | 33.2% | -9.3% |
| 29 | Connecticut | 4.0% | -0.9% | -26.4% | -54.2% | 12.6% | -43.8% |
| 30 | Pennsylvania | 4.1% | -3.3% | -29.2% | -54.6% | -11.4% | -35.2% |
| 31 | Oklahoma | 3.2% | 5.1% | 3.0% | -44.0% | 2.7% | -17.8% |
| 32 | Tennessee | 3.4% | -0.2% | -9.4% | -50.1% | 1.6% | -7.2% |
| 33 | Colorado | 3.4% | -1.9% | -26.8% | -43.8% | 40.3% | -5.9% |
| 34 | Washington | 3.7% | 0.6% | -20.7% | -51.2% | -8.8% | -2.9% |
| 35 | North Carolina | 3.6% | 2.6% | -18.8% | -41.7% | -6.6% | -7.1% |
| 36 | Maryland | 4.0% | -7.0% | -30.2% | -40.6% | 5.2% | -10.1% |
| 37 | Arkansas | 3.5% | 3.9% | 0.9% | -39.7% | -0.8% | -15.1% |
| 38 | New York | 4.3% | -8.9% | -28.5% | -58.6% | 6.1% | -15.1% |
| 39 | Arizona | 3.7% | 6.8% | -9.7% | -46.7% | -20.3% | -9.4% |
| 40 | Michigan | 4.1% | 0.1% | -26.0% | -52.5% | -2.1% | -12.6% |
| 41 | New Mexico | 4.2% | -4.3% | -31.9% | -52.7% | -12.1% | -3.5% |
| 42 | West Virginia | 4.0% | 1.7% | -12.5% | -46.8% | -21.2% | -16.8% |
| 43 | Oregon | 3.8% | 2.7% | -13.5% | -47.5% | 12.0% | -10.1% |
| 44 | Ohio | 4.0% | 1.3% | -14.2% | -46.9% | -7.8% | -12.6% |
| 45 | Kentucky | 3.8% | -0.3% | -19.4% | -22.7% | -7.2% | -8.4% |
| 46 | Texas | 4.0% | -2.3% | -20.3% | -45.9% | 16.9% | -5.5% |
| 47 | Delaware | 4.3% | -4.7% | -14.7% | -43.3% | 14.9% | -28.7% |
| 48 | Nevada | 4.4% | 1.2% | -19.7% | -67.5% | 15.6% | -4.2% |
| 49 | District of Columbia | 4.7% | -9.0% | -27.4% | -46.3% | -9.6% | -8.6% |
| 50 | Alaska | 4.4% | -4.1% | -23.5% | -39.7% | -16.6% | 1.7% |
| 51 | Illinois | 4.5% | 0.2% | -17.3% | -49.0% | 19.7% | -13.6% |
- Biggest Decrease
- 1. New Jersey
- 2. Hawaii
- 3. District of Columbia
- 4. Florida
- 5. New York
- Smallest Decrease
- 47. Nebraska
- 48. Minnesota
- 49. Arizona
- 50. New Hampshire
- 51. Rhode Island
- Biggest Decrease
- 1. New Jersey
- 2. Rhode Island
- 3. Missouri
- 4. California
- 5. Minnesota
- Smallest Decrease
- 47. Montana
- 48. Wisconsin
- 49. Indiana
- 50. Arkansas
- 51. Oklahoma
- Biggest Decrease
- 1. Hawaii
- 2. Florida
- 3. Minnesota
- 4. Rhode Island
- 5. Nevada
- Smallest Decrease
- 47. Montana
- 48. Idaho
- 49. Nebraska
- 50. Maine
- 51. Kentucky
- Biggest Decrease
- 1. Minnesota
- 2. Mississippi
- 3. Nebraska
- 4. Louisiana
- 5. Missouri
- Smallest Decrease
- 47. Texas
- 48. Illinois
- 49. South Carolina
- 50. Colorado
- 51. Hawaii
- Lowest Rate
- 1. Minnesota
- T-2. Utah
- T-2. Vermont
- T-4. Nebraska
- T-4. New Hampshire
- T-4. North Dakota
- Highest Rate
- T-46. Delaware
- T-46. New York
- T-48. Alaska
- T-48. Nevada
- 50. Illinois
- 51. District of Columbia
Ask the Experts
In order to provide further insight on U.S. unemployment, WalletHub turned to a panel of experts. Click on the pictures of experts below to read their bios and responses to the following key questions:
- What are the best ways for state and local authorities to ensure a cost effective rebound from the economic aftermath of the pandemic?
- What are the most resilient industries and fields during the current crisis?
- What job skills do you think will be the most sought after in the post-coronavirus job market?
Ask the Experts
Professor of Economics – University of California, Merced
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Ph.D. – JPMorgan Chase Professor of International Business and Department Chair, Department of Management and Leadership, C.T. Bauer College of Business – University of Houston
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Ph.D. – Professor and Director, MSHRM Program; Sorrell College of Business – Troy University
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Associate Professor, Business Management, Koppelman School of Business – Brooklyn College
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Ph.D. – Assistant Professor, Graduate Business Lead Professor, Academic Internship Mentor, College of Business, Innovation, Leadership and Technology – Marymount University
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Full Professor and Department Head, Public and Nonprofit Management Program, School of Economic, Political and Policy Sciences – The University of Texas at Dallas
Read More
Methodology
In order to examine changes in unemployment rates throughout the U.S., WalletHub compared the 50 states and the District of Columbia across two categories. In the first category, we compared the change in unemployment for the latest month for which we had data (September 2022) to August 2022, September 2021, September 2020 and September 2019, in order to show the impact since the beginning of the pandemic and the recent changes in the job market amid high inflation. We also compared not seasonally adjusted continued claims in September 2022 to August 2022. In the second category, we looked at the state’s overall unemployment rate. We then used the average of those categories to rank-order the states.
Change in Unemployment - Total Points: 50
- Change in Unemployment in September 2022 vs. August 2022: Full Weight (~10.00 Points)
- Change in Unemployment in September 2022 vs. September 2021: Full Weight (~10.00 Points)
- Change in Unemployment in September 2022 vs. September 2020: Full Weight (~10.00 Points)
- Change in Unemployment in September 2022 vs. September 2019: Full Weight (~10.00 Points)
- Not Seasonally Adjusted Continued Claims in September 2022 vs. August 2022: Full Weight (~10.00 Points)
Unemployment Rate - Total Points: 50
- Unemployment Rate (September 2022): Full Weight (~50.00 Points)
Sources: Data used to create this ranking were obtained from the U.S. Bureau of Labor Statistics and the U.S. Department of Labor.