What's Your State's Unemployment Rate Right Now? (2026)
District of Columbia had the highest unemployment rate at 6.0% in 2026-06, against a 4.0% national average — a 4.0-percentage-point gap between the highest- and lowest-unemployment states. 27 states are running above the national average. BLS Local Area Unemployment Statistics, with SNAP enrollment and State Distress Index scores for cross-reference.
Data period: 2026-06 ·
Which States Have the Highest Unemployment?
The national unemployment rate gives you one number. It does not give you 4.0 percentage points of variation underneath it. District of Columbia sits at 6.0%. South Dakota sits at 2.0%. Same economy, same month, different country.
California (5.2%) and Connecticut (5.2%) round out the highest. The national average is 4.0% with a median of 4.1%. 27 states currently exceed that average. What's interesting is how the unemployment map overlaps with other forms of household distress. American Default Research publishes state-level distress scores that capture this intersection. The American Distress Index reads 43.8 (Typical) nationally. On average, its inputs sit higher than in 44% of their own quarterly histories. The state-level picture is where the pattern gets sharper.
At a Glance
The American Distress Index reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories. Unemployment feeds the distress data through two channels: the national unemployment rate and initial jobless claims are the two inputs to the ADI's Labor domain, and unemployment is also the state-level Labor domain in the State Distress Index. 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 Distress Rankings page maps how these intersecting pressures cluster geographically.
Which 15 States Have the Highest Unemployment?
District of Columbia stands at 6.0%. That's 1.5x the national average. The top 15 cluster in two familiar geographies. Large service-sector states with high cost-of-living coastal markets. And post-industrial states where the labor market recovery was always uneven to begin with. The pattern repeats across multiple cycles. The states that lead into downturns are often the ones that never fully recovered from the last one.
Unemployment Rate by State — Top 15 (2026-06)
BLS Local Area Unemployment Statistics (LAUS). Seasonally adjusted annual averages.
Does Higher Unemployment Mean Higher Financial Distress?
This is the question that matters more than the ranking. A state can have moderate unemployment and still score high on household distress, because delinquency, the courts, and severe renter cost burden all carry weight independently. But the scatter plot below makes one thing clear. When unemployment is high and composite distress is high, the compounding effect is visible. The upper-right quadrant of this chart is where labor market weakness meets pre-existing leverage. Those states also tend to have different foreclosure timelines and legal protections, which shapes how quickly economic stress converts to housing loss.
Unemployment Rate vs. State Distress Index Score (All 51 Jurisdictions)
BLS LAUS (2026-06) x State Distress Index composite.
Full state rankings: State Financial Distress Rankings 2026
How Is Unemployment Trending Month to Month?
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 (2022–2026)
BLS LAUS. Seasonally adjusted monthly rates.
National labor market indicators: Unemployment & Job Market Statistics 2026
How Does Unemployment Relate to Food Assistance?
Here's where it gets interesting. SNAP enrollment and unemployment should correlate, and they do. But not cleanly. Some states with moderate unemployment have very high SNAP enrollment. That's not job loss. That's low wages and high cost burdens creating the same downstream pressure through a different mechanism. The states in the upper-right quadrant of this chart are the ones facing both at once. Weak labor markets and widespread food assistance reliance. That combination is the clearest signal of deep, structural household distress.
Unemployment Rate vs. SNAP Enrollment Rate (All 51 Jurisdictions)
BLS LAUS (2026-06) × 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 | 6.0% |
| 2 | California | 5.2% |
| 3 | Connecticut | 5.2% |
| 4 | Oregon | 5.2% |
| 5 | Washington | 5.2% |
| 6 | Illinois | 5.1% |
| 7 | Nevada | 5.1% |
| 8 | Michigan | 5.0% |
| 9 | Arizona | 4.9% |
| 10 | Delaware | 4.9% |
Lowest Unemployment
| # | State | Rate |
|---|---|---|
| 1 | South Dakota | 2.0% |
| 2 | North Dakota | 2.3% |
| 3 | Hawaii | 2.6% |
| 4 | Vermont | 2.6% |
| 5 | Nebraska | 2.9% |
| 6 | New Hampshire | 2.9% |
| 7 | Maine | 3.1% |
| 8 | Alabama | 3.2% |
| 9 | Iowa | 3.2% |
| 10 | Wyoming | 3.2% |
Biggest YoY Increase
| # | State | Change |
|---|---|---|
| 1 | Connecticut | +0.9pp |
| 2 | Alabama | +0.5pp |
| 3 | Arizona | +0.5pp |
| 4 | New Mexico | +0.5pp |
| 5 | Oklahoma | +0.5pp |
| 6 | Florida | +0.4pp |
| 7 | Hawaii | +0.4pp |
| 8 | Illinois | +0.4pp |
| 9 | Kentucky | +0.3pp |
| 10 | Washington | +0.3pp |
Biggest YoY Decrease
| # | State | Change |
|---|---|---|
| 1 | New Jersey | -0.9pp |
| 2 | Ohio | -0.8pp |
| 3 | District of Columbia | -0.7pp |
| 4 | Alaska | -0.4pp |
| 5 | Delaware | -0.4pp |
| 6 | South Carolina | -0.4pp |
| 7 | West Virginia | -0.4pp |
| 8 | Pennsylvania | -0.3pp |
| 9 | Rhode Island | -0.3pp |
| 10 | Montana | -0.3pp |
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 Distress Index score from American Default Research. States with unemployment above the national average are highlighted in red.
| State | Unemp. % | YoY Chg | SNAP % | SDI Score | Distress Score Label |
|---|---|---|---|---|---|
| Alabama | 3.2 | +0.5 | 13.1 | 61.6 | moderate-high state distress |
| Alaska | 4.4 | -0.4 | 9.4 | 29.3 | low state distress |
| Arizona | 4.9 | +0.5 | 5.3 | 65.2 | moderate-high state distress |
| Arkansas | 4.1 | -0.2 | 7.3 | 57.0 | moderate state distress |
| California | 5.2 | -0.3 | 13.2 | 68.8 | moderate-high state distress |
| Colorado | 3.9 | +0.1 | 9.7 | 43.3 | moderate-low state distress |
| Connecticut | 5.2 | +0.9 | 8.5 | 64.9 | moderate-high state distress |
| Delaware | 4.9 | -0.4 | 9.6 | 70.0 | high state distress |
| District of Columbia | 6.0 | -0.7 | 19.5 | 66.1 | moderate-high state distress |
| Florida | 4.7 | +0.4 | 9.8 | 80.1 | very high state distress |
| Georgia | 3.4 | -0.1 | 12.2 | 73.0 | high state distress |
| Hawaii | 2.6 | +0.4 | 11.0 | 32.8 | low-moderate state distress |
| Idaho | 3.7 | +0.1 | 6.1 | 31.5 | low-moderate state distress |
| Illinois | 5.1 | +0.4 | 13.2 | 63.1 | moderate-high state distress |
| Indiana | 3.3 | -0.2 | 7.4 | 50.1 | moderate state distress |
| Iowa | 3.2 | -0.2 | 7.5 | 28.3 | low state distress |
| Kansas | 3.8 | 0.0 | 5.6 | 38.5 | low-moderate state distress |
| Kentucky | 4.7 | +0.3 | 12.2 | 61.6 | moderate-high state distress |
| Louisiana | 4.4 | +0.2 | 13.8 | 84.7 | very high state distress |
| Maine | 3.1 | -0.2 | 10.7 | 23.5 | low state distress |
| Maryland | 4.3 | +0.1 | 10.0 | 64.9 | moderate-high state distress |
| Massachusetts | 4.4 | -0.3 | 12.8 | 42.6 | moderate-low state distress |
| Michigan | 5.0 | 0.0 | 13.7 | 71.7 | high state distress |
| Minnesota | 4.4 | +0.2 | 7.5 | 32.2 | low-moderate state distress |
| Mississippi | 3.8 | +0.1 | 10.7 | 73.7 | high state distress |
| Missouri | 3.7 | -0.2 | 9.9 | 45.0 | moderate-low state distress |
| Montana | 3.3 | -0.3 | 6.2 | 18.9 | very low state distress |
| Nebraska | 2.9 | -0.1 | 6.6 | 21.0 | low state distress |
| Nevada | 5.1 | -0.1 | 12.4 | 91.3 | extreme state distress |
| New Hampshire | 2.9 | -0.3 | 5.2 | 15.6 | very low state distress |
| New Jersey | 4.5 | -0.9 | 8.2 | 60.0 | moderate-high state distress |
| New Mexico | 4.8 | +0.5 | 20.8 | 67.6 | moderate-high state distress |
| New York | 4.6 | 0.0 | 14.2 | 62.7 | moderate-high state distress |
| North Carolina | 3.6 | -0.2 | 10.8 | 51.4 | moderate state distress |
| North Dakota | 2.3 | -0.3 | 6.6 | 8.7 | exceptionally low state distress |
| Ohio | 3.6 | -0.8 | 11.4 | 54.4 | moderate state distress |
| Oklahoma | 4.2 | +0.5 | 14.1 | 57.6 | moderate state distress |
| Oregon | 5.2 | -0.1 | 16.6 | 61.8 | moderate-high state distress |
| Pennsylvania | 4.1 | -0.3 | 13.3 | 56.3 | moderate state distress |
| Rhode Island | 4.1 | -0.3 | 11.1 | 51.6 | moderate state distress |
| South Carolina | 4.4 | -0.4 | 9.1 | 74.9 | high state distress |
| South Dakota | 2.0 | -0.2 | 7.6 | 9.4 | exceptionally low state distress |
| Tennessee | 3.5 | -0.1 | 8.2 | 54.2 | moderate state distress |
| Texas | 4.4 | +0.1 | 9.6 | 70.2 | high state distress |
| Utah | 3.6 | -0.1 | 4.3 | 27.1 | low state distress |
| Vermont | 2.6 | -0.1 | 9.1 | 17.2 | very low state distress |
| Virginia | 3.7 | +0.1 | 8.1 | 44.9 | moderate-low state distress |
| Washington | 5.2 | +0.3 | 10.8 | 44.9 | moderate-low state distress |
| West Virginia | 4.2 | -0.4 | 14.6 | 57.9 | moderate state distress |
| Wisconsin | 3.3 | +0.1 | 11.0 | 23.6 | low state distress |
| Wyoming | 3.2 | -0.3 | 4.3 | 23.5 | low state distress |
| National Average | 4.0 | — | 10.9 | 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 here's the part I think is underappreciated. States with low headline unemployment can still have high SNAP enrollment (widespread low-wage work), high delinquency (asset stress), or both. The headline rate tells you about job loss. It says nothing about whether the jobs that exist are enough to cover the bills. The states worth watching are the ones 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 that a 4% unemployment rate obscures completely.
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, July 2026. SNAP: Supplemental Nutrition Assistance Program (SNAP), U.S. Department of Agriculture, Food and Nutrition Service, July 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 2026?
District of Columbia has the highest unemployment rate at 6.0% as of 2026-06. The national average is 4.0%. District of Columbia's rate is 1.5x the national average.
Which state has the lowest unemployment?
South Dakota has the lowest unemployment rate at 2.0%, followed by North Dakota (2.3%) and Hawaii (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?
The national unemployment rate and initial jobless claims are the two inputs to the ADI's Labor domain; unemployment is also the Labor domain in the State Distress Index. States with persistently high unemployment also tend to show elevated delinquency rates, higher SNAP enrollment, and more bankruptcy filings. The ADI currently reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories.
Which state unemployment rate increased the most in the last year?
Connecticut saw the largest year-over-year increase at +0.9 percentage points, from 4.3% in 2025 to 5.2% in 2026. 19 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. Unemployment feeds the State Distress Index; SNAP enrollment does not, because it measures how much help arrives rather than how much need exists.