Guide Rankings Economy Updated May 31, 2026

Unemployment Rate by State 2026

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Unemployment Rate by State 2026

Ranking - Economy

Quick Answer

Unemployment Rate by State 2026

  1. 1

    California has the highest unemployment rate at 5.5%, followed by New Jersey (5.4%) and Nevada (5.2%). All three states have large service and hospitality sectors sensitive to economic cycles.

  2. 2

    Hawaii and South Dakota both record the lowest unemployment rates at 2.2%, followed by North Dakota and Vermont at 2.6%. These states have small, tight labor markets with limited seasonal volatility.

  3. 3

    The national unemployment rate has ranged from 3.4% to 4.1% throughout 2024–2025 (BLS). Most states fall within two percentage points of that range; outliers on both ends reflect structural rather than cyclical factors.

Map

Unemployment Rate by State 2026 Map

Unempl. Rate
No data
Nevada and California show the deepest red. The Plains and Mountain states cluster at the light end. South Dakota and Nebraska are consistently the tightest labor markets in the country.
Unemployment Rate by State 2026 Map
Rank State Unempl. Rate
1 California 5.5
2 New Jersey 5.4
3 Delaware 5.2
4 Nevada 5.2
5 Oregon 5.2
6 Alaska 4.8
7 Massachusetts 4.8
8 South Carolina 4.8
9 Washington 4.7
10 Illinois 4.6
11 New York 4.6
12 West Virginia 4.6
13 Kentucky 4.5
14 Michigan 4.5
15 Ohio 4.5
16 Arizona 4.3
17 Florida 4.3
18 New Mexico 4.3
19 Rhode Island 4.3
20 Texas 4.3
21 Arkansas 4.2
22 Connecticut 4.2
23 Louisiana 4.2
24 Maryland 4.2
25 Pennsylvania 4.2
26 Minnesota 4.1
27 Missouri 3.9
28 North Carolina 3.9
29 Colorado 3.8
30 Kansas 3.8
31 Georgia 3.6
32 Idaho 3.6
33 Oklahoma 3.6
34 Tennessee 3.6
35 Utah 3.6
36 Virginia 3.6
37 Indiana 3.5
38 Iowa 3.5
39 Mississippi 3.4
40 Montana 3.4
41 Wyoming 3.4
42 Maine 3.2
43 New Hampshire 3.1
44 Wisconsin 3.1
45 Nebraska 3
46 Alabama 2.7
47 North Dakota 2.6
48 Vermont 2.6
49 Hawaii 2.2
50 South Dakota 2.2

Nevada and California show the deepest red. The Plains and Mountain states cluster at the light end. South Dakota and Nebraska are consistently the tightest labor markets in the country.

Unemployment Rate by State 2026 Table

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Print-ready table — Unemployment Rate by State 2026

States with the Highest and Lowest Unemployment Rates

Highest

5.5
California flag
California #1

Lowest

2.2
South Dakota flag
South Dakota #50

Top 10 Highest — Unemployment Rate (%)

#1 California flag California
5.5
#2 New Jersey flag New Jersey
5.4
#3 Delaware flag Delaware
5.2
#4 Nevada flag Nevada
5.2
#5 Oregon flag Oregon
5.2
#6 Alaska flag Alaska
4.8
#7 Massachusetts flag Massachusetts
4.8
#8 South Carolina flag South Carolina
4.8
#9 Washington flag Washington
4.7
#10 Illinois flag Illinois
4.6

Top 10 Lowest — Unemployment Rate (%)

#50 South Dakota flag South Dakota
2.2
#49 Hawaii flag Hawaii
2.2
#48 Vermont flag Vermont
2.6
#47 North Dakota flag North Dakota
2.6
#46 Alabama flag Alabama
2.7
#45 Nebraska flag Nebraska
3
#44 Wisconsin flag Wisconsin
3.1
#43 New Hampshire flag New Hampshire
3.1
#42 Maine flag Maine
3.2
#41 Wyoming flag Wyoming
3.4

Why the Dakotas and Hawaii Have the Lowest Unemployment

Industrial worker welding metal with bright sparks in a factory
Skilled industrial work is a more direct visual match for tight labor markets in states where production and energy-related jobs stay in demand.

South Dakota and Hawaii both record unemployment rates of 2.2%, the lowest in the country. North Dakota is close at 2.6%. Both states have small, tight labor markets where agriculture, energy, and financial services provide stable year-round employment. North Dakota's oil patch in the Williston Basin generates demand for workers across drilling, logistics, and support industries.

Hawaii (2.2%) matches the Dakotas through a different mechanism: near-full employment in tourism and hospitality during the post-pandemic travel recovery. Vermont (2.6%) and Alabama (2.7%) follow. Population size plays a role, with fewer than 800,000 residents each, the Dakotas see measurable rate changes from relatively small shifts in hiring.

Why California Has the Highest Unemployment Rate

Dense downtown skyline filled with tall office buildings
Large, specialized urban labor markets can take longer to reabsorb displaced workers after major sector layoffs.

California's 5.5% unemployment rate reflects the structural complexity of a labor market with 19 million workers. The state's tech sector shed over 200,000 jobs in 2022 and 2023 through layoffs at companies including Meta, Google, Amazon, and Salesforce. Those workers entered the unemployment pool while seeking comparably specialized roles, extending the average duration of unemployment.

California also has a large share of workers in seasonal agriculture and entertainment production, both of which generate cyclical unemployment. New Jersey (5.4%) and Nevada (5.2%) follow California for different reasons: New Jersey has a large financial services sector sensitive to Wall Street cycles, while Nevada's casino and hospitality economy creates volatility tied to tourism spending.

What the Unemployment Rate Does Not Measure

The official unemployment rate counts only people who are actively looking for work. It excludes discouraged workers, people who want jobs but have stopped applying, as well as part-time workers who want full-time positions. States with high rates of labor force non-participation can show low unemployment figures despite widespread joblessness.

West Virginia illustrates this. Its unemployment rate is 4.6%, near the national average, but its employment-population ratio is only 55.8%, fewer than 56% of working-age adults are employed. Many West Virginians are neither employed nor classified as unemployed because they are not actively searching. The broader U-6 measure, which includes discouraged and underemployed workers, typically runs 3 to 4 points above the headline rate in states with high non-participation.

Quick Answers

Which state has the highest unemployment rate
Nevada and California consistently rank among the states with the highest unemployment rates. Nevada's economy depends heavily on tourism and hospitality — industries that are especially sensitive to recessions and travel slowdowns. California's large size and diverse economy produces both high-wage tech jobs and high unemployment in lower-wage service sectors.
Which state has the lowest unemployment rate
Hawaii and South Dakota record the lowest unemployment rates at 2.2%, followed by North Dakota and Vermont at 2.6%. These states have small, tight labor markets and economies anchored by agriculture, tourism, and energy that offer stable year-round employment.
What counts as unemployed in the BLS data
The BLS counts someone as unemployed only if they are without a job, available to work, and have actively looked for work in the past four weeks. People who have stopped looking (discouraged workers) are not counted in the official unemployment rate, which is why some economists also track U-6, a broader measure.
Does a low unemployment rate mean the economy is strong
A low unemployment rate is a positive indicator, but context matters. A state can have low unemployment because it has a thriving economy or because people have left the labor force entirely. The employment-to-population ratio captures a fuller picture of how many working-age residents are actually employed.

Methodology

Unemployment rates are seasonally adjusted annual averages from the Bureau of Labor Statistics (BLS) Local Area Unemployment Statistics (LAUS) program. The rate measures the percentage of the civilian labor force that is unemployed and actively seeking work.

Sources

Information is cross-referenced with official state archives.
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