U.S. Unemployment Statistics by State 2026
Unemployment rates for all 50 states and DC, with SNAP enrollment rates and State ADI distress scores for cross-reference. The gap between the best and worst labor markets is 4.5 percentage points — and it maps closely to the geography of household financial distress.
Data period: 2025-12 · Last updated: 2026-03-22
Which States Have the Highest Unemployment?
District of Columbia has the highest unemployment rate at 6.7%, followed by California (5.5%) and New Jersey (5.4%). The national average is 4.0% with a median of 4.2%.
At the other end, Hawaii (2.2%), South Dakota (2.2%), and North Dakota (2.6%) have the tightest labor markets. 27 states currently exceed the national average. Unemployment feeds the American Distress Index as the Labor Market component (15% weight) in the State ADI.
At a Glance
The American Distress Index reads 59.0 (Elevated). State unemployment feeds the ADI through two channels: the national-level Labor Market component (15% of the composite ADI) and the state-level Labor Market component (15% of each State ADI score). States with persistently elevated unemployment also tend to show higher delinquency rates, higher credit card default rates, and elevated SNAP enrollment, creating compounding distress. The State ADI rankings analysis maps how these intersecting pressures cluster geographically.
The 15 Highest-Unemployment States
District of Columbia stands well above the pack at 6.7% — 1.7x the national average. The top 15 skew toward states with large service sectors, high cost-of-living coastal markets, and post-industrial economies where labor market recovery has been uneven.
Unemployment Rate by State — Top 15 (2025-12)
Source: BLS Local Area Unemployment Statistics (LAUS). Seasonally adjusted annual averages.
Unemployment and State Distress: The Correlation
The scatter plot below maps each state's unemployment rate against its State ADI score. States in the upper-right quadrant — high unemployment and high composite distress — are the ones where labor market weakness compounds other stressors: elevated delinquency, high SNAP enrollment, and weaker safety nets. States with weak labor markets also face different foreclosure timelines and legal protections — a critical dimension that shapes how economic distress translates into housing loss.
Unemployment Rate vs. State ADI Score (All 51 Jurisdictions)
Source: BLS LAUS (2025-12) × American Default State ADI composite.
Full state rankings: State Financial Distress Rankings 2026
Monthly Trend: National Average and Top 5 States
Monthly unemployment rates since January 2022 for the five highest-unemployment states alongside the national average. The post-COVID recovery brought most states below 4% by mid-2022, but a subset has drifted back upward — diverging from the national trajectory.
Monthly Unemployment Rate: National Average vs. Top 5 States (2022–2025)
Source: BLS LAUS. Seasonally adjusted monthly rates.
National labor market indicators: Unemployment & Job Market Statistics 2026
SNAP Enrollment and Unemployment: The Safety Net Signal
SNAP enrollment rates correlate with unemployment but tell a different story. Some states with moderate unemployment have very high SNAP enrollment — reflecting low wages and high cost burdens rather than job loss. States in the upper-right quadrant face both: weak labor markets and widespread reliance on food assistance, a combination that signals deep household distress.
Unemployment Rate vs. SNAP Enrollment Rate (All 51 Jurisdictions)
Source: BLS LAUS (2025-12) × USDA FNS SNAP participation data.
SNAP indicator: SNAP Enrollment Rate time series
State Rankings
The top 10 and bottom 10 states by unemployment rate, plus the biggest year-over-year movers.
Highest Unemployment
| # | State | Rate |
|---|---|---|
| 1 | District of Columbia | 6.7% |
| 2 | California | 5.5% |
| 3 | New Jersey | 5.4% |
| 4 | Delaware | 5.2% |
| 5 | Nevada | 5.2% |
| 6 | Oregon | 5.2% |
| 7 | Michigan | 5.0% |
| 8 | Alaska | 4.8% |
| 9 | Massachusetts | 4.8% |
| 10 | South Carolina | 4.8% |
Lowest Unemployment
| # | State | Rate |
|---|---|---|
| 1 | Hawaii | 2.2% |
| 2 | South Dakota | 2.2% |
| 3 | North Dakota | 2.6% |
| 4 | Vermont | 2.6% |
| 5 | Alabama | 2.7% |
| 6 | Nebraska | 3.0% |
| 7 | New Hampshire | 3.1% |
| 8 | Wisconsin | 3.1% |
| 9 | Maine | 3.2% |
| 10 | Montana | 3.4% |
Biggest YoY Increase
| # | State | Change |
|---|---|---|
| 1 | Delaware | +1.6pp |
| 2 | District of Columbia | +1.4pp |
| 3 | Maryland | +1.1pp |
| 4 | Minnesota | +1.1pp |
| 5 | Connecticut | +1.0pp |
| 6 | Oregon | +0.9pp |
| 7 | Florida | +0.9pp |
| 8 | New Jersey | +0.8pp |
| 9 | Massachusetts | +0.7pp |
| 10 | Virginia | +0.7pp |
All States: Unemployment, SNAP, and Distress
The full dataset for all 50 states and DC. Unemployment rate from BLS LAUS, SNAP enrollment rate from USDA FNS, and composite State ADI score from American Default. States with unemployment above the national average are highlighted in red.
| State | Unemp. % | YoY Chg | SNAP % | State ADI | ADI Zone |
|---|---|---|---|---|---|
| Alabama | 2.7 | -0.6 | 13.8 | 58.8 | Elevated |
| Alaska | 4.8 | +0.1 | 8.9 | 40.8 | Normal |
| Arizona | 4.3 | +0.5 | 8.7 | 52.1 | Elevated |
| Arkansas | 4.2 | +0.6 | 7.7 | 54.1 | Elevated |
| California | 5.5 | 0.0 | 13.5 | 59.8 | Elevated |
| Colorado | 3.8 | -0.8 | 9.9 | 45.8 | Normal |
| Connecticut | 4.2 | +1.0 | 9.3 | 44.4 | Normal |
| Delaware | 5.2 | +1.6 | 11.7 | 62.1 | Elevated |
| District of Columbia | 6.7 | +1.4 | 20.6 | 76.0 | Serious Stress |
| Florida | 4.3 | +0.9 | 11.4 | 62.8 | Elevated |
| Georgia | 3.6 | 0.0 | 16.7 | 64.9 | Elevated |
| Hawaii | 2.2 | -0.8 | 11.5 | 38.2 | Normal |
| Idaho | 3.6 | -0.2 | 6.0 | 38.1 | Normal |
| Illinois | 4.6 | -0.3 | 14.7 | 57.3 | Elevated |
| Indiana | 3.5 | -0.9 | 8.1 | 49.5 | Normal |
| Iowa | 3.5 | +0.2 | 7.9 | 41.3 | Normal |
| Kansas | 3.8 | 0.0 | 6.0 | 43.9 | Normal |
| Kentucky | 4.5 | -0.8 | 13.0 | 56.6 | Elevated |
| Louisiana | 4.2 | -0.4 | 16.6 | 64.5 | Elevated |
| Maine | 3.2 | -0.2 | 11.3 | 39.4 | Normal |
| Maryland | 4.2 | +1.1 | 10.0 | 56.0 | Elevated |
| Massachusetts | 4.8 | +0.7 | 14.3 | 45.6 | Normal |
| Michigan | 5.0 | -0.2 | 14.7 | 56.1 | Elevated |
| Minnesota | 4.1 | +1.1 | 7.6 | 41.5 | Normal |
| Mississippi | 3.7 | +0.1 | 11.6 | 62.8 | Elevated |
| Missouri | 3.9 | +0.3 | 10.3 | 47.6 | Normal |
| Montana | 3.4 | +0.5 | 6.5 | 37.0 | Normal |
| Nebraska | 3.0 | +0.1 | 7.1 | 38.3 | Normal |
| Nevada | 5.2 | -0.6 | 13.6 | 66.0 | Serious Stress |
| New Hampshire | 3.1 | +0.3 | 5.3 | 38.2 | Normal |
| New Jersey | 5.4 | +0.8 | 8.4 | 53.6 | Elevated |
| New Mexico | 4.3 | 0.0 | 21.2 | 55.4 | Elevated |
| New York | 4.6 | +0.2 | 14.6 | 56.7 | Elevated |
| North Carolina | 3.9 | +0.2 | 12.0 | 48.6 | Normal |
| North Dakota | 2.6 | +0.1 | 7.0 | 34.6 | Healthy |
| Ohio | 4.5 | 0.0 | 11.8 | 52.3 | Elevated |
| Oklahoma | 3.6 | +0.3 | 16.1 | 57.9 | Elevated |
| Oregon | 5.2 | +0.9 | 17.4 | 51.5 | Elevated |
| Pennsylvania | 4.2 | +0.5 | 14.1 | 52.4 | Elevated |
| Rhode Island | 4.3 | -0.2 | 11.9 | 49.7 | Normal |
| South Carolina | 4.8 | +0.4 | 9.8 | 53.1 | Elevated |
| South Dakota | 2.2 | +0.3 | 7.7 | 34.5 | Healthy |
| Tennessee | 3.6 | -0.1 | 9.8 | 50.4 | Elevated |
| Texas | 4.3 | +0.1 | 10.9 | 56.7 | Elevated |
| Utah | 3.6 | +0.3 | 4.8 | 42.5 | Normal |
| Vermont | 2.6 | +0.1 | 9.5 | 34.5 | Healthy |
| Virginia | 3.6 | +0.7 | 9.5 | 46.0 | Normal |
| Washington | 4.7 | +0.3 | 10.9 | 46.9 | Normal |
| West Virginia | 4.6 | +0.5 | 14.9 | 55.4 | Elevated |
| Wisconsin | 3.1 | 0.0 | 11.2 | 38.6 | Normal |
| Wyoming | 3.4 | -0.1 | 4.4 | 39.3 | Normal |
| National Average | 4.0 | — | 11.9 | 50.0 | — |
Values in red exceed the national average. Green values indicate year-over-year improvement. State names link to foreclosure law guides.
The Geography of Labor Market Weakness
Unemployment is the ADI's most real-time component — BLS publishes state data monthly, while most other distress indicators arrive quarterly. But unemployment alone understates distress: states with low headline unemployment can still have high SNAP enrollment (indicating widespread low-wage work), high delinquency (indicating asset stress), or both. The states that matter most for the ADI thesis are those where labor market weakness compounds pre-existing leverage — particularly in the Sun Belt corridor where rapid population growth, high housing costs, and elevated FHA concentration create a triple vulnerability.
Data Sources
BLS LAUS
Unemployment rates from the Bureau of Labor Statistics Local Area Unemployment Statistics program. Seasonally adjusted annual averages for state-level rates. Monthly rates also available. Series IDs follow LASST + FIPS code + 0000000000003 format.
USDA FNS SNAP
SNAP (Supplemental Nutrition Assistance Program) enrollment from the USDA Food and Nutrition Service State Activity Reports. Enrollment rates computed as SNAP persons divided by Census 2024 state population estimates.
Citation
Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics, March 2026. SNAP: Supplemental Nutrition Assistance Program (SNAP), U.S. Department of Agriculture, Food and Nutrition Service, March 2026. For state-level composite scores, see State Financial Distress Rankings and Default Rates by State.
Frequently Asked Questions
Which state has the highest unemployment rate in 2025?
District of Columbia has the highest unemployment rate at 6.7% as of 2025-12. The national average is 4.0%. District of Columbia's rate is 1.7x the national average.
Which state has the lowest unemployment?
Hawaii has the lowest unemployment rate at 2.2%, followed by South Dakota (2.2%) and North Dakota (2.6%). These states tend to have diversified economies with strong tourism, technology, or military employment.
How does state unemployment connect to the American Distress Index?
Unemployment is the Labor Market component of both the national ADI (15% weight) and the State ADI (15% weight). States with persistently high unemployment also tend to show elevated delinquency rates, higher SNAP enrollment, and more bankruptcy filings — all of which feed other ADI components. The ADI currently reads 59.0 (Elevated).
Which state unemployment rate increased the most in the last year?
Delaware saw the largest year-over-year increase at +1.6 percentage points, from 3.6% in 2024 to 5.2% in 2025. 31 states saw unemployment rise year-over-year.
Is there a correlation between unemployment and SNAP enrollment?
Yes, but the correlation is imperfect. Some states with moderate unemployment have high SNAP enrollment because of widespread low-wage work — not job loss. The combination of high unemployment AND high SNAP enrollment signals compounding distress, which is why both feed the State ADI (unemployment at 15% and SNAP-based economic need at 20%).