In this article, we will take a look at the 25 best states for job seekers right now. If you want to skip our discussion, you can go directly to the 5 Best States for Job Seekers Right Now.
American Job Market
The job market around the world is changing with new work dynamics and the involvement of AI. Increasing hybrid work models and remote jobs are defining a new era for jobs and how employers need to find the best fit for the company. During the COVID-19 pandemic, the US labor market recorded 8.6 million occupational shifts, with most people looking to work from home. AI is going to create jobs and people will have to go through occupational transitions to find relevant jobs in the coming years. According to a study by McKinsey, current activities that account for almost 30% of hours worked across the US could be automated by 2030 – mainly driven by generative AI. In addition, 12 million occupational transitions may be necessary by 2030.
The US states with the most competitive job markets also tend to be the hardest states to find a job. California, Illinois, and New York are competitive marketplaces with high unemployment rates of 5.1%, 4.8%, and 4.5%, respectively. Due to high market saturation, it is difficult to obtain jobs in such states.
At the moment, the US economy seems to be getting better compared to the last few years, especially since the pandemic. S&P Global Market Intelligence now expects the US GDP growth forecast to be 2.4% in 2024 compared to its previous forecast of 1.7%. Economists at S&P Global Intelligence expect the US economy’s late 2023 growth momentum to continue into 2024. The boosting economy of the US is helping the job market as well.
In January 2024, US employers added 353,000 new jobs, as per the US Bureau of Labor Statistics. Over the last three months from November 2023 to January 2024, the US economy has added approximately 900,000 new jobs. Since March 2023, this is the fastest three-month period of job growth. Between November 2023 to January 2024, the unemployment rate remained steady at 3.7%. In 2023, payroll employment surged by an average of 255,000 jobs per month.
In January 2024, job growth was high in professional and business services, health care, retail trade, and social assistance. Each of the following segments added 74,000, 70,000, 45,000, and 30,000 jobs in January 2024, respectively. These numbers reflect the US economy’s resilience. In January 2024, the average hourly earnings on private nonfarm payrolls was almost $34.55. Whereas, the average hourly earnings of private-sector production and nonsupervisory employees was $29.66 in January.
America’s job market is improving despite elevated interest rates maintained by the Fed. As we mentioned earlier, Federal Reserve Chair Jerome Powell mentioned that the central bank will proceed carefully with interest rate cuts in 2024. Powell said the Fed wants to see more evidence that inflation is heading towards 2%.
Most In-Demand Jobs
America is the land of opportunities and it has some of the most competitive job markets in the world across 50 states. Medical and Health Services Managers, Data Scientists, AI and Machine Learning Specialists, Software Developers, and Cloud System Engineers were some of the most needed jobs in America in 2023. Companies are prioritizing big data and generative AI in upgrading their offerings. Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and Adobe Inc. (NASDAQ:ADBE) are some of the leading American companies that provide top work opportunities.
Amazon.com, Inc. (NASDAQ:AMZN) the giant e-commerce giant has created thousands of jobs across the US over the years. On February 6, Amazon.com, Inc. (NASDAQ:AMZN) updated that it is accepting grant applications from nonprofit literary organizations through Amazon Literary Partnership. The applicants can apply through April 15, 2024. Amazon Literary Partnership has aided more than $16 million in grant funding to empower writers by helping them learn, teach, create, publish, and experiment.
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the leading financial services companies in the US. The company has several technical and non-technical job openings in the US. On January 25, the company announced six innovations that it is bringing to the market in 2024. The company wants to revolutionize commerce via AI-driven personalization for both merchants and consumers. Such developments in AI will pave the way for experts in AI and Machine Learning.
Adobe Inc. (NASDAQ:ADBE) is one of the top computer software companies in the US. On January 16, Adobe Inc. (NASDAQ:ADBE) and the Adobe Foundation announced their first-ever Adobe Film & TV Fund. Adobe Inc.’s (NASDAQ:ADBE) fund will be granting $6 million to support underrepresented creators and filmmakers in finding career opportunities in the film and TV industry.
Now, let’s take a look at the best states for job seekers right now.
25 Best States for Job Seekers Right Now
Our Methodology
To compile or list the 25 best states for job seekers right now, we considered three metrics: Unemployment Rate, Labor Force Participation Rate, and Change in Nonfarm Employment by State, or Job Growth Rate.
Firstly, we sorted the states based on the unemployment rate and gathered a list of 28 states with the lowest unemployment rates, as of December 2023. The unemployment rate measures the percentage of the labor force that is out of work.
After forming the list of states with low unemployment rates, we ranked the states based on the year-over-year job growth rate, as of December 2023. The job growth rate shows the percentage change in employment between December 2022 and December 2023. The job growth rate potentially reflects the dynamism and expansion of the job market.
The Labor Force Participation Rate represents the proportion of each state’s working-age population that is either looking for jobs or actively engaging in the labor market. The data for the Labor Force Participation Rate is also from December 2023.
We have ranked the states in ascending order of their year-over-year job growth rate, primarily. We used the unemployment rate, our secondary metric, for tie-breaking. Finally, we used our tertiary metric, the labor force participation rate, for further tie-breaking if it was needed.
The data for both the unemployment rate and job growth rate for the states is taken from the US Bureau of Labor Statistics and the data for Labor Force Participation Rate is collected from the Federal Reserve Economic Data. We have also mentioned the annual average salary of each state and the data for that is taken from Forbes.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
25 Best States for Job Seekers Right Now
25. Iowa
Unemployment Rate: 3.2%
Job Growth Rate: 0.6%
Labor Force Participation Rate: 67.7%
Iowa is one of the best states for job seekers right now with a job growth rate of 0.6%, as of December 2023. Iowa has an average salary of $53,520.
24. Colorado
Unemployment Rate: 3.4%
Job Growth Rate: 0.8%
Labor Force Participation Rate: 68.4%
Colorado has a 0.8% job growth rate and an unemployment rate of 3.4%. Colorado has a $67,870 average salary in the state.
23. Kansas
Unemployment Rate: 2.8%
Job Growth Rate: 0.8%
Labor Force Participation Rate: 66.4%
Kansas has an unemployment rate of 2.8% and a job growth rate of 0.8%, as of December 2023. Kansas has an average salary of $52,850.
22. Oklahoma
Unemployment Rate: 3.4%
Job Growth Rate: 1%
Labor Force Participation Rate: 62.7%
Oklahoma has an average salary of $50,940 and a job growth rate of 1%. Oklahoma ranks 22nd among the best states for job seekers right now.
21. Nebraska
Unemployment Rate: 2.3%
Job Growth Rate: 1%
Labor Force Participation Rate: 68.9%
Nebraska has an unemployment rate of 2.3% and a job growth rate of 1%, as of December 2023. With an average salary of $55,070, Nebraska is one of the best states to find a job.
20. Arkansas
Unemployment Rate: 3.4%
Job Growth Rate: 1.1%
Labor Force Participation Rate: 57.6%
Arkansas has an average salary of $48,570 and a job growth rate of 1.1%. Arkansas is ranked 20th among the best states for job seekers right now.
19. Virginia
Unemployment Rate: 3%
Job Growth Rate: 1.1%
Labor Force Participation Rate: 66.9%
Virginia has a job growth rate of 1.1% and an unemployment rate of 3%. Virginia has an average salary of $65,590 and is one of the best states to find a job.
18. Hawaii
Unemployment Rate: 2.9%
Job Growth Rate: 1.1%
Labor Force Participation Rate: 60.1%
Hawaii has an average salary of $61,420 and a job growth rate of 1.1%. Hawaii is one of the best states to search for a job.
17. Maryland
Unemployment Rate: 1.9%
Job Growth Rate: 1.2%
Labor Force Participation Rate: 65.2%
Maryland has a job growth rate of 1.2% and an unemployment rate of 1.9%, as of December 2023. Maryland has an average salary of $69,750 and is one of the states with the highest average salaries.
16. Wisconsin
Unemployment Rate: 3.3%
Job Growth Rate: 1.4%
Labor Force Participation Rate: 65.9%
Wisconsin has an unemployment rate of 3.3% and a job growth rate of 1.4%, as of December 2023. Wisconsin has an average salary of $56,120.
15. Maine
Unemployment Rate: 3.2%
Job Growth Rate: 1.5%
Labor Force Participation Rate: 59%
Maine is one of the states with the highest year-over-year job growth, as of December 2023. Maine has an average salary of $55,960.
14. Missouri
Unemployment Rate: 3.3%
Job Growth Rate: 1.6%
Labor Force Participation Rate: 63.3%
Missouri is one of the best states to search for a job. Missouri has a job growth rate of 1.6% and an average salary of $54,620.
13. Montana
Unemployment Rate: 3.2%
Job Growth Rate: 1.6%
Labor Force Participation Rate: 62.7%
Montana has a similar job growth rate as Missouri. Montana has an average salary of $52,200 and ranks 13th among the best states for job seekers right now.
12. Alabama
Unemployment Rate: 2.6%
Job Growth Rate: 1.6%
Labor Force Participation Rate: 57.2%
Alabama has an average salary of $50,620 and a job growth rate of 1.6%. Alabama is one of the best states to find a job.
11. Minnesota
Unemployment Rate: 2.9%
Job Growth Rate: 1.7%
Labor Force Participation Rate: 68.1%
Minnesota has a job growth rate of 1.7% and an unemployment rate of 2.9%, as of December 2023. Minnesota has an average salary of $63,640.
10. New Hampshire
Unemployment Rate: 2.5%
Job Growth Rate: 1.7%
Labor Force Participation Rate: 64.8%
New Hampshire has an average salary of $62,550 and a job growth rate of 1.7%. New Hampshire is one of the best states to find a job.
9. Massachusetts
Unemployment Rate: 3.2%
Job Growth Rate: 1.9%
Labor Force Participation Rate: 64.9%
Massachusetts is placed ninth among the best states for job seekers right now. Massachusetts has a job growth rate of 1.9% and an average salary of $76,600.
8. Utah
Unemployment Rate: 2.8%
Job Growth Rate: 1.9%
Labor Force Participation Rate: 69.3%
Utah has a job growth rate of 1.9% and an unemployment rate of 2.8%, as of December 2023. Utah has an average salary of $57,360.
7. Georgia
Unemployment Rate: 3.4%
Job Growth Rate: 2%
Labor Force Participation Rate: 61.6%
Georgia has an unemployment rate of 3.4% and a job growth rate of 2%, as of December 2023. With an average salary of $58,000, Georgia is one of the best states to search for a job.
6. North Dakota
Unemployment Rate: 1.9%
Job Growth Rate: 2.2%
Labor Force Participation Rate: 69.1%
North Dakota has an average salary of $55,800 and a job growth rate of 2.2%. North Dakota is ranked sixth among the best states for job seekers right now.
Click to continue reading and see the 5 Best States for Job Seekers Right Now.
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Disclosure: None. 25 Best States for Job Seekers Right Now is published on Insider Monkey.
