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Editor's Note: This report is based on survey data from December 2024 that was published in January 2025. This is the most recent data available. (Source: Bureau of Labor Statistics)
Despite the expectation-exceeding quarter of a million net jobs added last month across the US, unemployment actually increased in 6 states and only decreased in 2 states, with the remaining 42 states and Washington DC showing no significant movement in either direction.
Payroll figures were even more steady month-to-month, with 48 states and DC seeing almost no change in payroll during December while only 2 states saw a net increase in payroll figures.
Below is the breakdown of the Bureau of Labor Statistics’ (BLS) market employment summary for January 2025.
Nevada had the highest unemployment rate for the second consecutive month, holding steady at 5.7%, followed by California and Washington DC at 5.5%, Kentucky and Illinois at 5.2%, and Michigan at 5.0% unemployment.
All other states have unemployment rates that are at or below the national average of 4.1%
Mississippi and Alabama had the largest jumps in unemployment rate last month - both climbing from 3.1% to 3.3%. Colorado, Maine, Massachusetts, and Pennsylvania each saw their state unemployment rate climb by 0.1%, as well.
Over the last year, 28 states in total have recorded an increase in unemployment rate, with the steepest rises occurring in South Carolina (1.7%), Rhode Island (1.2%), Colorado (1.1%), and Indiana and Kansas at 1.1% each.
South Dakota has maintained the lowest unemployment rate in the country for the last 12 months in a row, staying consistently at 1.9% unemployment for the last 3 months.
Vermont has the next lowest unemployment rate at 2.4% followed by North Dakota at 2.5%.
In total, 21 states have employment rates below the US average of 4.1%.
Only 2 states recorded a decrease in unemployment over the last month - Minnesota, which saw its unemployment rate drop from 5.5% to 5.3%, and Montana, which saw its unemployment rate fall by 0.1% from 3.2% to 3.1%.
Over the last 12 months, 6 states in total have seen net unemployment rate reductions, led by Connecticut, which saw its unemployment rate decrease by 1.2% over the year, followed by Wisconsin and Arizona at minus 0.4% each.
No state recorded net job losses over the last month or the last year.
Texas and Missouri were the only states that had a net increase in payroll last month, adding about 37 thousand and 11 thousand jobs respectively.
Over the last year, 33 states have seen an increase in their payroll figures, with Texas and California reporting the largest number of net jobs added while Idaho had the largest percentage increase in payroll figures at plus 3.6%, followed by Missouri and South Carolina at 2.8% each.
Despite the downtick in the unemployment rate and huge over-performance of jobs reflected in this month’s Employment Situation release, there was relatively little evidence of those gains seen in the states, which were a model of stability nearly across the board.
Data from different labor surveys can and will often lead to results that don’t necessarily align, and that appears to be the case here.
Next month might provide some additional context that may help better interpret the disconnect between employment reports showing growth and those showing stability, but next month’s report will cover data collected on both sides of the transition from one session of Congress and one presidential administration to the next.
Whether there is much insight yet to be obtained about economic data at the close of the previous term will quickly become overshadowed by the potential economic implications of new policies that are proposed and enacted over these first few months of 2025.
With a flurry of activity both at the federal and state level already, including both legislation and executive orders that carry significant economic implications, that’s where we’ll be keeping an eye out in the months ahead as the economic and workforce impacts take shape.
Looking for more exclusive content? Check out the Mployer blog.
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