Annual average unemployment rates decreased in 6 states in 2023

In 2023, annual average unemployment rates decreased in 6 states, increased in 2 states, and were little changed in 42 states and the District of Columbia. Employment-population ratios increased in 10 states and were little changed in 40 states and the District. The U.S. jobless rate was unchanged over the year at 3.6 percent, while the national employment–population ratio rose by 0.3 percentage point to 60.3 percent.

North Dakota had the lowest jobless rate among the states in 2023, 1.9 percent. Nevada had the highest unemployment rate, 5.1 percent. Overall, 23 states had unemployment rates lower than the U.S. figure of 3.6 percent, 6 states and the District of Columbia had higher rates, and 21 states had rates that were not appreciably different from that of the nation.

Six states had unemployment rate decreases in 2023, the largest of which were in Maryland (−0.9 percentage point) and Pennsylvania (−0.7 point). The only two states with over-the-year rate increases were California and New Jersey (+0.5 percentage point each). The remaining 42 states and the District of Columbia had annual average jobless rates in 2023 that were not appreciably different from those of the previous year.

The District of Columbia had the highest proportion of employed people in 2023, 68.2 percent, which also set a new high in its annual average series. The next highest ratios were in North Dakota, 67.9 percent, and Utah, 67.7 percent. Mississippi and West Virginia had the lowest employment–population ratios among the states, 52.3 percent and 52.8 percent, respectively. Overall, 21 states and the District had employment-population ratios higher than the U.S. ratio of 60.3 percent, 16 states had lower ratios, and 13 states had ratios that were not appreciably different from that of the nation.

Employment–population ratios increased in 10 states and were little changed in 40 states and the District in 2023. The largest increases among the states occurred in Michigan (+1.6 percentage points), followed by Vermont and Virginia (+1.3 points each).

These data are from the Local Area Unemployment Statistics program. To learn more, see “Regional and State Unemployment – 2023 Annual Averages.” The employment–population ratio is the proportion of the civilian population age 16 years and older who are employed.