December’s jobs report showed a slowdown in growth. The economy gained 223,000 nonfarm payroll jobs, down from 256,000 the previous month. In December, there were notable gains in sectors including leisure and hospitality, health care, construction and social assistance.
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 (December 2022) to key dates in 2022, 2021, 2020 and 2019.
Main Findings
Unemployment Rate Changes by State
| Overall Rank | State | Unemployment Rate (December 2022) | Change in Unemployment (December 2022 vs November 2022) | Change in Unemployment (December 2022 vs December 2021) | Change in Unemployment (December 2022 vs December 2020) | Change in Unemployment (December 2022 vs December 2019) | Not Seasonally Adjusted Continued Claims (December 2022 vs November 2022) |
|---|---|---|---|---|---|---|---|
| 1 | Florida | 2.5% | -3.2% | -25.6% | -58.7% | -8.3% | 11.0% |
| 2 | South Dakota | 2.3% | -2.3% | -19.0% | -31.2% | -11.4% | 86.0% |
| 3 | Missouri | 2.8% | 1.8% | -29.6% | -46.2% | -16.0% | 23.3% |
| 4 | Utah | 2.2% | 1.9% | 0.3% | -33.4% | -5.4% | 40.2% |
| 5 | North Dakota | 2.3% | 0.4% | -27.0% | -54.0% | 11.4% | 117.3% |
| 6 | Minnesota | 2.5% | 8.7% | -14.5% | -44.4% | -32.6% | 47.6% |
| 7 | Montana | 2.8% | -4.2% | -2.7% | -27.6% | -22.3% | 22.2% |
| 8 | Alabama | 2.8% | 0.6% | -8.7% | -36.2% | -12.6% | 30.0% |
| 9 | Georgia | 3.0% | 0.6% | -9.5% | -40.5% | -12.7% | 9.2% |
| 10 | Hawaii | 3.2% | -3.0% | -26.3% | -66.9% | 58.2% | 0.4% |
| 11 | New Hampshire | 2.7% | 5.1% | -8.1% | -39.6% | -0.1% | 25.0% |
| 12 | Vermont | 2.6% | 6.3% | -13.0% | -29.9% | -4.0% | 49.9% |
| 13 | Massachusetts | 3.3% | -0.5% | -28.5% | -57.0% | 9.5% | 32.3% |
| 14 | New Jersey | 3.4% | 1.0% | -30.6% | -52.5% | -4.1% | 22.5% |
| 15 | Colorado | 3.3% | -5.9% | -19.8% | -46.6% | 30.4% | 17.0% |
| 16 | New Mexico | 3.9% | -3.2% | -33.1% | -50.5% | -25.1% | 11.7% |
| 17 | Kansas | 2.9% | 2.9% | 5.8% | -29.8% | -5.7% | 12.7% |
| 18 | Louisiana | 3.5% | 5.8% | -20.8% | -50.0% | -32.4% | 10.7% |
| 19 | Virginia | 3.0% | 4.1% | -8.7% | -39.2% | 8.0% | 26.4% |
| 20 | Rhode Island | 3.5% | -2.4% | -21.7% | -46.9% | -1.6% | 33.6% |
| 21 | Idaho | 2.9% | -2.3% | -3.1% | -25.8% | 5.0% | 69.3% |
| 22 | Nebraska | 2.6% | 3.2% | 11.3% | -5.8% | -15.3% | 51.2% |
| 23 | Indiana | 3.1% | 1.3% | 17.5% | -35.2% | -7.4% | 23.6% |
| 24 | South Carolina | 3.3% | -1.0% | -8.7% | -32.7% | 27.0% | 10.5% |
| 25 | Wisconsin | 3.2% | -2.9% | 2.7% | -32.3% | 0.8% | 55.2% |
| 26 | Pennsylvania | 3.9% | -0.7% | -27.6% | -49.3% | -18.0% | 31.3% |
| 27 | Tennessee | 3.5% | -1.1% | -2.3% | -35.4% | -1.7% | 19.0% |
| 28 | Maryland | 4.0% | -7.2% | -25.7% | -35.4% | -1.4% | 17.6% |
| 29 | Iowa | 3.1% | 1.6% | -17.9% | -28.7% | 15.5% | 87.9% |
| 30 | California | 4.1% | -0.9% | -28.6% | -54.3% | -1.9% | 22.3% |
| 31 | Oklahoma | 3.4% | -1.3% | 20.9% | -33.5% | 11.0% | 5.9% |
| 32 | Wyoming | 3.7% | 2.9% | -7.9% | -28.9% | -18.9% | 19.2% |
| 33 | Texas | 3.9% | -1.3% | -16.9% | -41.6% | 18.0% | 12.1% |
| 34 | Mississippi | 4.0% | 2.2% | -14.5% | -40.5% | -28.1% | 28.5% |
| 35 | Arkansas | 3.6% | -0.7% | 12.6% | -27.1% | 2.5% | 5.1% |
| 36 | Alaska | 4.3% | -2.6% | -20.9% | -38.6% | -14.3% | 15.7% |
| 37 | Arizona | 4.0% | -0.3% | 7.2% | -33.6% | -14.0% | 4.9% |
| 38 | West Virginia | 4.1% | -1.5% | -5.0% | -34.0% | -20.4% | 32.8% |
| 39 | North Carolina | 3.9% | 0.2% | -3.0% | -26.8% | 5.8% | 12.5% |
| 40 | New York | 4.3% | 0.2% | -18.4% | -50.2% | 6.9% | 16.7% |
| 41 | Kentucky | 4.0% | -0.9% | -12.9% | -16.4% | -1.7% | 22.8% |
| 42 | Connecticut | 4.2% | 0.4% | -15.7% | -43.9% | 17.6% | 28.0% |
| 43 | Ohio | 4.2% | 0.3% | -4.7% | -31.7% | -6.0% | 45.0% |
| 44 | Michigan | 4.3% | 0.2% | -15.1% | -36.2% | 10.0% | 36.9% |
| 45 | District of Columbia | 4.7% | -0.2% | -25.7% | -38.7% | -15.8% | 32.5% |
| 46 | Maine | 3.8% | 3.2% | -8.2% | -12.9% | 24.9% | 45.8% |
| 47 | Washington | 4.2% | 4.2% | -5.4% | -33.8% | 8.0% | 45.2% |
| 48 | Delaware | 4.4% | -0.2% | -9.3% | -21.0% | 21.5% | 32.2% |
| 49 | Illinois | 4.7% | 0.0% | -6.6% | -35.6% | 28.7% | 42.4% |
| 50 | Oregon | 4.5% | 4.1% | 9.2% | -29.6% | 39.6% | 17.1% |
| 51 | Nevada | 5.2% | 5.6% | 2.0% | -51.0% | 36.4% | 17.8% |
- Biggest Decrease
- 1. Maryland
- 2. Colorado
- 3. Montana
- 4. New Mexico
- 5. Florida
- Smallest Decrease
- 47. New Hampshire
- 48. Nevada
- 49. Louisiana
- 50. Vermont
- 51. Minnesota
- Biggest Decrease
- 1. New Mexico
- 2. New Jersey
- 3. Missouri
- 4. California
- 5. Massachusetts
- Smallest Decrease
- 47. Oregon
- 48. Nebraska
- 49. Arkansas
- 50. Indiana
- 51. Oklahoma
- Biggest Decrease
- 1. Hawaii
- 2. Florida
- 3. Massachusetts
- 4. California
- 5. North Dakota
- Smallest Decrease
- 47. Idaho
- 48. Delaware
- 49. Kentucky
- 50. Maine
- 51. Nebraska
- Biggest Decrease
- 1. Minnesota
- 2. Louisiana
- 3. Mississippi
- 4. New Mexico
- 5. Montana
- Smallest Decrease
- 47. Illinois
- 48. Colorado
- 49. Nevada
- 50. Oregon
- 51. Hawaii
- Lowest Rate
- 1. Utah
- T-2. North Dakota
- T-2. South Dakota
- T-4. Florida
- T-4. Minnesota
- Highest Rate
- 47. Delaware
- 48. Oregon
- T-49. District of Columbia
- T-49. Illinois
- 51. Nevada
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 current job market?
- What’s in store for the job market in 2023?
Ask the Experts
Associate Professor, Carlson School of Management – University of Minnesota
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Associate Professor of Economics, School of Liberal Arts – Tulane University
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Ph.D. – Professor of History – Western Illinois University
Read More
Associate Professor, Department of Economics – University of St. Thomas
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Adjunct Professor of Economics, Wilbur O. and Ann Powers College of Business – Clemson University
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Assistant Professor of Economics – Occidental College
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 (December 2022) to November 2022, December 2021, December 2020 and December 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 December 2022 to November 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 December 2022 vs. November 2022: Full Weight (~10.00 Points)
- Change in Unemployment in December 2022 vs. December 2021: Full Weight (~10.00 Points)
- Change in Unemployment in December 2022 vs. December 2020: Full Weight (~10.00 Points)
- Change in Unemployment in December 2022 vs. December 2019: Full Weight (~10.00 Points)
- Not Seasonally Adjusted Continued Claims in December 2022 vs. November 2022: Full Weight (~10.00 Points)
Unemployment Rate - Total Points: 50
- Unemployment Rate (December 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.