The second quarter of 2024 brought a nuanced landscape in state-level unemployment and job growth across the United States, according to recent data from the U.S. Bureau of Labor Statistics.
Understanding these trends is crucial for recruitment firms aiming to navigate the dynamic job market effectively. Here’s a breakdown of the key insights from April, May, and June 2024.
April 2024: A stable start with minor shifts
In April, the national unemployment rate was stable at 3.9%, slightly higher than the previous year by 0.5 percentage points. The unemployment rates decreased in five states, increased in two, and remained stable in 43 states and the District of Columbia. Notably, North Dakota and South Dakota reported the lowest unemployment rates at 2.0%, while California had the highest at 5.3%.
States with statistically significant unemployment rate changes from March 2024 to April 2024, seasonally adjusted.
| State | March % | April % | Over-the-month change |
| Arizona | 3.8 | 3.6 | -0.2 |
| Florida | 3.2 | 3.3 | 1 |
| Maine | 3.3 | 3.1 | -2 |
| Maryland | 2.5 | 2.6 | 1 |
| Mississippi | 3.0 | 2.8 | -2 |
| Montana | 3.3 | 3.1 | -2 |
| Virginia | 2.9 | 2.8 | -1 |
Nonfarm payroll employment showed growth in six states, with Florida, Texas, and Missouri seeing the most significant gains. Over the year, 31 states experienced an increase in nonfarm payroll employment, highlighting a strong job market in these areas.
States with statistically significant employment changes from March 2024 to April 2024, seasonally adjusted.
| State | March | April | Over the month change – level | Over the month change % |
| Alabama | 2,193,500 | 2,202,600 | 9,100 | 0.4 |
| Florida | 9,904,300 | 9,949,600 | 45,300 | 5 |
| Georgia | 4,951,900 | 4,967,400 | 15,500 | 3 |
| Michigan | 4,479,300 | 4,494,100 | 14,800 | 3 |
| Missouri | 3,025,900 | 3,042,600 | 16,700 | 6 |
| Texas | 14,116,400 | 14,159,000 | 42,600 | 3 |
May 2024: Incremental changes and regional highlights
The unemployment rate edged up slightly to 4.0% nationally, with North Dakota and South Dakota maintaining the lowest rates at 2.0%. New records were set in Arizona and Tennessee, with unemployment rates at 3.4% and 3.0%, respectively. The District of Columbia continued to have the highest unemployment rate at 5.3%.
States with statistically significant unemployment rate changes from April 2024 to May 2024, seasonally adjusted.
| State | April % | May % | Over-the-month change % |
| Arizona | 3.6 | 3.4 | -0.2 |
| California | 5.3 | 5.2 | -1 |
| Kansas | 2.8 | 2.9 | 1 |
| Maine | 3.1 | 3.0 | -1 |
| Massachusetts | 2.9 | 3.0 | 1 |
| Ohio | 4.0 | 4.2 | 2 |
| Virginia | 2.8 | 2.7 | -1 |
Seven states and the District of Columbia saw increases in nonfarm payroll employment, with notable job gains in California, Texas, and Ohio. Over the year, 30 states reported increased employment, with Alaska and South Carolina leading in percentage gains at 3.5%.
States with statistically significant employment changes from April 2024 to May 2024, seasonally adjusted.
| State | April | May | Over the month change – level | Over the month change % |
| California | 17,990,200 | 18,033,900 | 43,700 | 0.2 |
| District of Columbia | 770,100 | 775,100 | 5,000 | 6 |
| Idaho | 863,400 | 871,000 | 7,600 | 9 |
| New Jersey | 4,377,200 | 4,393,700 | 16,500 | 4 |
| Ohio | 5,641,400 | 5,662,600 | 21,200 | 4 |
| Pennsylvania | 6,147,900 | 6,167,700 | 19,800 | 3 |
| Texas | 14,153,800 | 14,195,600 | 41,800 | 3 |
| Washington | 3,647,300 | 3,663,300 | 16,000 | 4 |
June 2024: A continued trend of stability with specific state variations
June saw the national unemployment rate slightly increase to 4.1%. South Dakota reported the lowest unemployment rate at 2.0%, while the District of Columbia had the highest at 5.4%. Arizona achieved a new series low of 3.3% unemployment.
States with statistically significant unemployment rate changes from May 2024 to June 2024, seasonally adjusted.
| State | May % | June % | Over-the-month change % |
| Connecticut | 4.3 | 3.9 | -0.4 |
| Georgia | 3.2 | 3.3 | 1 |
| Kansas | 2.9 | 3.1 | 2 |
| Massachusetts | 3.0 | 3.2 | 2 |
| Minnesota | 2.8 | 2.9 | 1 |
| Missouri | 3.5 | 3.7 | 2 |
| Ohio | 2.8 | 2.7 | 2 |
| South Carolina | 3.4 | 3.6 | 2 |
| Utah | 2.9 | 3.0 | 1 |
Employment data indicated growth in eight states, including North Carolina, Massachusetts, and Virginia. Over the year, Texas, California, and Florida reported the most substantial job gains. South Carolina, Missouri, and Nevada recorded the highest percentage increases in employment.
| State | May | June | Over the month change – level | Over the month change % |
| Arkansas | 1,368,700 | 1,377,400 | 8,700 | 0.6 |
| Kansas | 1,457,000 | 1,464,600 | 7,600 | 5 |
| Massachusetts | 3,736,100 | 3,755,100 | 19,000 | 5 |
| Missouri | 3,057,600 | 3,072,300 | 14,700 | 5 |
| New Hampshire | 706,800 | 711,300 | 4,500 | 6 |
| New Mexico | 886,600 | 892,000 | 5,400 | 6 |
| North Carolina | 5,008,500 | 5,031,600 | 23,100 | 5 |
| Virginia | 4,245,900 | 4,260,900 | 15,000 | 4 |
Why should recruitment companies know this?
For recruitment firms, these data points suggest a mixed but stable economic environment. States with low unemployment rates, like North and South Dakota, may present challenges in finding available talent due to tighter labor markets. In contrast, states like California and the District of Columbia, with higher unemployment rates, may offer more opportunities for talent acquisition but could also indicate economic challenges affecting job growth.
The increase in nonfarm payroll employment in several states, particularly in Texas, Florida, and California, highlights regions with expanding job markets. Recruitment firms should focus on these areas for industries showing robust growth, particularly in sectors that are driving these employment gains.
Conclusion
The Q2 2024 data presents a landscape of overall stability with regional variations that recruitment firms should note. States with consistently low unemployment rates might present challenges in finding candidates, while those with higher rates could offer more available talent. With nonfarm payroll employment generally on the rise, particularly in certain states, there are ample opportunities for recruitment firms to help businesses navigate the labor market and secure the talent they need.
You can view Q1 2024 State-Level Unemployment data in our previous blog.