New research shows Top 10 states with widest unemployment gaps in 2023
FormRush’s recent research reveals disparities in state-level unemployment figures across America for 2023. While the latest national rate sits at a stable 3.6%, FormRush’s ranked analysis of 2023 data for individual U.S. states shows two distinct clusters – those succeeding at job growth and those falling behind.
The Top 10 states with the highest unemployment reached rates over 5.4%, compared to states with the lowest unemployment rates under 2% for states like South Dakota, North Dakota, and Maryland.
Table 1. States with the highest unemployment rates
|
Rank |
State |
2023 Rate |
|
1 |
Nevada |
5.4 |
|
2 |
District of Columbia |
4.9 |
|
3 |
California |
4.6 |
|
4 |
Illinois |
4.4 |
|
5 |
Delaware |
4.3 |
|
6 |
New York |
4.1 |
|
7 |
Texas |
4.1 |
|
8 |
Washington |
4.0 |
|
9 |
New Jersey |
4.0 |
|
10 |
Michigan |
4.0 |
Key details on the top 10 high unemployment states:
1. Nevada
Nevada had the highest unemployment rate at 5.4% at the end of 2023, with job recovery in hospitality and entertainment continuing to lag. The state's heavy tourism dependence has challenged the rebound.
2. Washington D.C.
Washington D.C. followed closely with 4.9% unemployment, as cuts to public sector employment like government administrative jobs have hampered hiring progress.
3. California
California unemployment stood at 4.6% last December, showing an uneven jobs recovery across regions with the tech-centric Bay Area rebounding strongly while other areas struggle.
4. Illinois
Illinois' 4.4% unemployment rate in December reflects its gradual recovery from long-term declines in heavy industry and manufacturing across many metro areas.
5. Delaware
Delaware's 4.3% joblessness underscores reliance on financial and chemical sectors facing consolidation risks that compound workforce impacts from regional declines.
6. New York
With Wall Street and the finance industry recovering strongly, New York's 4.1% unemployment underscores how much the state relies on the workplace ecosystem and economic vibrancy of New York City.
7. Texas
Texas’ steady 4.1% unemployment despite its business-friendly policies shows that even resilient economies grapple with lasting impacts from pandemic turbulence. The state still copes with a hospitality sector not fully recovered and regional disparities polarizing metros.
8. Washington
At 4% unemployment, lingering aerospace declines in Washington weigh down hiring despite pockets of tech-sector resilience during turbulent times. The state contends with changes hitting cornerstones while emerging industries develop footing.
9. New Jersey
New Jersey’s 4% unemployment highlights an uneven recovery complicated by statewide barriers like affordability challenges for small businesses looking to expand workforces after the pandemic’s blows. Tourism and transit trajectories chart paths ahead.
10. Michigan
At 4% unemployment in December, Michigan continues to grapple with lingering manufacturing job loss that has spanned decades across its metro Detroit and Flint regions.
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