State labor conditions remain uneven across the U.S. in May, with unemployment rates holding steady in much of the country while other states post either declines or increases. The latest snapshot also shows payroll job gains outnumber losses across states, even as the national unemployment rate remains at 4.3 percent.
Highlights
- Unemployment remained unchanged in 22 states, decreased in 20, and increased in nine states in May, per Joint Economic Committee data.
- The highest unemployment rate was 6.1 percent in the District of Columbia and the lowest was 2.1 percent in South Dakota during May.
- Payroll jobs increased in 38 states, led by a 1.4 percent gain in West Virginia, while Montana saw the largest payroll drop of 0.5 percent.
May state employment picture
As reported by the Joint Economic Committee, unemployment remained unchanged in 22 states in May, decreased in 20 states and increased in nine. The committee's monthly State Employment Update covers all 50 states and the District of Columbia.The highest unemployment rate in May is 6.1 percent in the District of Columbia, while the lowest is 2.1 percent in South Dakota. Nationally, the unemployment rate remains unchanged in May.
Compared with the U.S. unemployment rate of 4.3 percent, three states match the national average. Twenty-seven states are below that level, while 21 states and the District of Columbia are above it.
Payroll gains outpace state-level losses
Payroll jobs rise in 38 states in May and fall in 13, pointing to broader job growth across much of the country despite mixed unemployment trends. The largest percentage payroll increase is 1.4 percent in West Virginia.Montana records the largest payroll job percentage decline at 0.5 percent. The state-by-state figures highlight differing labor market conditions across regions even as the national unemployment rate holds steady.
Our earlier coverage of weakening U.S. factory hiring highlighted that manufacturers were cutting jobs sharply in June as rising input costs, policy uncertainty, and supply-disruption concerns weighed on staffing plans. While survey data suggested output was still expanding, employment indicators pointed to one of the steepest manufacturing job contractions in years, implying a softer growth backdrop despite pockets of investment-driven activity.
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