Half of U.S. States Near Record Low Unemployment Rates

By Reade Pickert and Alex Tanzi, Bloomberg News (via TNS).

Half of U.S. states were experiencing record-low unemployment — or very close to it — in June, underscoring the strength of the nation’s labor market.

The unemployment rates in 25 states are currently at or within 0.1 percentage point of a record low, Bureau of Labor Statistics data showed Friday. New Hampshire and South Dakota had the lowest jobless rates last month, at 1.8%.

Arkansas, Mississippi, Oklahoma, Pennsylvania, Ohio, Massachusetts and Maryland also posted fresh record-low readings.

The strength of the jobs market has both confounded economists and bolstered hope the U.S. economy may ultimately be able to skirt a recession despite a rapid increase in interest rates. And while there are cracks beginning to form — as evident in certain states like California — the broader picture remains one of resilience.

Compared to a year earlier, California’s unemployment rate is up 0.7 percentage point, the largest among all states and the same as seen in the District of Columbia. The state, which has experienced a disproportionate share of tech-related job losses, now has an unemployment rate of 4.6%.

Nevada, at 5.4%, has the highest jobless rate among states. Other states have also seen a pickup in unemployment since last year, but their jobless rates are largely still below the national average. For instance, Minnesota’s unemployment rate is up 0.5 percentage point from last year to a still-low 2.9%.

In a dozen states and DC, the number of people on payrolls remains below pre-pandemic levels. That includes New York and Hawaii. Idaho, Utah, Texas and Florida were among the states with the biggest gains in employment since February 2020.

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