Unemployment levels in certain regions provide valuable insights that help recruitment businesses make informed decisions about supply of labor, competition they may be facing, broader economic trends and strategic planning.
So far in 2024, the US recorded unemployment rates of 3.7% in January and 3.9% in February, and 3.8% in March. Job creation exceeded expectations in January and February but failed to meet projections in March.
January 2024
In January, the national unemployment rate held steady at 3.7 percent, mirroring the figures from January 2023. However, the state-level data revealed a more nuanced picture. While unemployment rates increased in four states, decreased in two, and remained stable in the majority, nonfarm payroll employment saw growth in eight states, with no significant change in the rest.
North Dakota had the lowest jobless rate in January, 1.9 percent. The next lowest rate was in South Dakota, 2.1 percent. Nevada had the highest unemployment rate, 5.3 percent, closely followed by California, 5.2 percent. In total, 16 states had unemployment rates lower than the US rate of 3.7%.
States with statistically significant unemployment rate changes from December 2023 to January 2024, seasonally adjusted.
| State | December 2023 Rate | January 2024 Rate | Over-the-month change |
| California | 5.1 | 5.2 | 0.1 |
| Connecticut | 4.2 | 4.4 | 2 |
| Massachusetts | 3.2 | 3.0 | -2 |
| Rhode Island | 3.4 | 3.6 | 2 |
| Washington | 4.4 | 4.6 | 2 |
| Wisconsin | 3.4 | 3.2 | -2 |
Nonfarm payroll employment increased in 8 states and was essentially unchanged in 42 states and the District of Columbia in January 2024. The largest job gains occurred in New York (+59,300), California (+58,100), and Florida (+38,800). The largest percentage increases occurred in New York and Vermont (+0.6 percent each), followed by Massachusetts and New Jersey (+0.5 percent each).
States with statistically significant employment changes from December 2023 to January 2024, seasonally adjusted.
| State | December 2023 Rate | January 2024 Rate | Over-the-month change (%) |
| California | 17,948,900 | 18,007,000 | 0.3 |
| Connecticut | 1,695,800 | 1,703,200 | 4 |
| Florida | 9,865,800 | 9,904,600 | 4 |
| Massachusetts | 3,721,100 | 3,739,400 | 5 |
| New Jersey | 4,366,300 | 4,387,100 | 5 |
| New York | 9,762,500 | 9,821,800 | 6 |
| South Carolina | 2,336,600 | 2,345,800 | 4 |
| Vermont | 309,600 | 311,600 | 6 |
February 2024
Moving into February, the national unemployment rate saw a slight uptick to 3.9 percent, marking a 0.2 percentage point increase from the previous month and a 0.3 point rise from February 2023. Similar to January, variations were observed at the state level, with three states experiencing higher unemployment rates, three seeing decreases, and the majority maintaining stability.
North Dakota had the lowest jobless rate in February, 2.0 percent. The next lowest rate was in South Dakota, 2.1 percent. California had the highest unemployment rate, 5.3 percent, closely followed by Nevada, 5.2 percent.
States with statistically significant unemployment rate changes from January 2024 to February 2024, seasonally adjusted.
| State | January 2024 Rate | February 2024 Rate | Over-the-month change |
| Connecticut | 4.4 | 4.5 | 0.1 |
| Massachusetts | 3.0 | 2.9 | -1 |
| Rhode Island | 3.6 | 3.9 | 3 |
| Tennessee | 3.5 | 3.3 | -2 |
| Washington | 4.6 | 4.7 | 1 |
| Wisconsin | 3.2 | 3.0 | -2 |
Nonfarm payroll employment, however, showed more subdued growth, with only four states witnessing increases. The rest of the states reported essentially unchanged employment figures.
Nonfarm payroll employment increased in 4 states and was essentially unchanged in 46 states and the District of Columbia in February 2024. Job gains occurred in Texas (+49,800, or +0.4 percent), Illinois (+23,100, or +0.4 percent), Michigan (+15,200, or +0.3 percent), and Iowa (+11,000, or +0.7 percent).
States with statistically significant employment rate changes from January 2024 to February 2024, seasonally adjusted.
| State | January 2024 | February 2024 | Over-the-month change (%) |
| Illinois | 6,099,700 | 6,122,800 | 0.4 |
| Iowa | 1,596,200 | 1,607,200 | 7 |
| Michigan | 4,457,100 | 4,472,300 | 3 |
| Texas | 14,053,900 | 14,103,700 | 4 |
March 2024
As Q1 2024 drew to a close, March brought a mix of improvements and challenges. While the national unemployment rate remained relatively steady at 3.8 percent, up slightly from the previous month and reflecting a 0.3 point increase from March 2023, six states saw lower unemployment rates compared to February.
North Dakota had the lowest jobless rate in March, 2.0 percent, closely followed by South Dakota, 2.1 percent, and Vermont, 2.2 percent. The rate in Mississippi, 3.0 percent, set a new series low. (All state series begin in 1976.) California had the highest unemployment rate, 5.3 percent, closely followed by the District of Columbia, 5.2 percent.
States with statistically significant unemployment rate changes from February 2024 to March 2024, seasonally adjusted.
| State | February 2024 Rate | March 2024 Rate | Over-the-month change |
| Arizona | 4.1 | 3.8 | -0.3 |
| Florida | 3.1 | 3.2 | 1 |
| Maine | 3.4 | 3.3 | -1 |
| Montana | 3.4 | 3.3 | -1 |
| New York | 4.4 | 4.3 | -1 |
| Vermont | 2.3 | 2.2 | -1 |
| Virginia | 3.0 | 2.9 | -1 |
On the employment front, five states experienced growth in nonfarm payroll employment, indicating pockets of opportunity amidst broader stability.
States with statistically significant employment rate changes from February 2024 to March 2024, seasonally adjusted.
| State | February 2024 | March 2024 | Over-the-month change (%) |
| Arkansas | 1,360,700 | 1,367,200 | 0.5 |
| Georgia | 4,933,300 | 4,949,500 | 3 |
| Kansas | 1,455,100 | 1,461,500 | 4 |
| Kentucky | 2,027,500 | 2,036,900 | 5 |
| Virginia | 4,211,800 | 4,228,300 | 4 |
Why recruitment companies should know this?
- Regional Insights: State-level data provides valuable insights into localized labor market trends, enabling recruitment firms to tailor their strategies to specific regions with the most promising opportunities.
- Adaptive Strategies: By being aware of which states are experiencing job growth and which ones are struggling with unemployment, recruiters can proactively position themselves to meet the demands of both clients and candidates.
You can view the US Bureau of Labor Statistics 2023 Annual Unemployment Average State and Regional Summary on our blog.