This article will look at the 5 states with the highest unemployment rates. We have also discussed important statistics related to employment in the US in another article. If you are interested in reading about that, along with a more extensive list, head straight to the 20 States with the Highest Unemployment Rates.
5. Texas
Unemployment Rate: 4.1%
Despite leading in job growth, Texas maintains a 4.1% unemployment rate. The rate reflects a larger labor force resulting from people’s inflow from other states and residents choosing to stay in the state. Texas’ stable labor force has been accommodating the rising demand for labor, preventing the paralysis of a tight labor market.
4. New Jersey
Unemployment Rate: 4.2%
On October 13, 2023, the New Jersey Department of Labor & Workforce Development announced the receipt of a federal grant of over $11.25 million to further improve its Unemployment Insurance systems. This funding, provided by the U.S. Department of Labor, will be used to introduce new features to streamline the claims process which will enable claimants to access, manage, and resolve initial applications, weekly certifications, and identity verification issues online. These improvements seek to address delays that commonly occur at the beginning of the claims process, ensuring that workers receive their benefits in a more timely manner.
3. California
Unemployment Rate: 4.6%
In August, the number of unemployed individuals in California increased by 9,800 compared to July and reached 894,700. This was up by 171,000 compared to August 2022. The state reported that 394,757 people certified for unemployment insurance benefits during a sample week in August. Moreover, a bill passed by the Legislature, Senate Bill 799, could extend unemployment benefits to striking workers after two weeks. The counties with the highest unemployment rates were Imperial at 19.7%, Tulare at 9.8%, and Colusa at 9.4%, while San Mateo had the lowest rate at 3.3%. The state also added 23,100 non-farm payroll jobs in August.
2. District of Columbia
Unemployment Rate: 5.0%
In 2022, Washington, DC, had a huge disparity in unemployment rates between Black and white residents. While the overall unemployment rate for the DC region was 2.5% in June, the Black unemployment rate in the District was 9.6%, whereas the white unemployment rate was only 1.4%, making it seven times higher. This racial disparity in unemployment rates, which is the worst in the nation, highlights structural issues within the labor market, leading to prolonged unemployment for Black residents.
1. Nevada
Unemployment Rate: 5.4%
Nevada has been struggling to recover from the economic impact of the COVID-19 pandemic, with the state having the highest unemployment rate in the country at 5.4%. The state’s economy heavily relies on gambling, tourism, and hospitality, which left it exceptionally vulnerable during the pandemic. Despite job gains over the past year, Nevada still lags behind other states. Efforts to diversify the economy through projects like Tesla’s Gigafactory and the relocation of the Oakland Athletics may help improve the state’s outlook. Nevada is the state with the highest unemployment rate.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at 25 Best Work from Home Jobs for 2023 and 25 Best Summer Jobs for College Students.
