U.S. Unemployment Rate Decline Varies Greatly by State

Unemployment at a 10-year low of 4.5% reflected 1.4% y/y growth in employment and a dampened 0.8% gain in the size of the labor pool. Amongst the states, unemployment continued to be widely divergent. Two states held above the 6.0% level while many were 3% or lower.

Alaska's unemployment rate topped the unemployment rate chart at 6.8%. It's been moving higher since the March low of 6.4% as labor force growth outpaced the 1.7% y/y gain in employment. New Mexico's jobless rate also remained high at 6.4%. Employment and labor force growth remain subdued near 1.0%. In Louisiana, the unemployment has fallen to a still high 5.5% as the labor force dipped y/y while employment rose slightly following last year's 1.8% decline. Pennsylvania's unemployment rate of 5.0% was down from 5.5% during the last twelve months and stood near its ten-year low. Employment grew 1.0% y/y versus 0.5% growth in the labor force. In California, the 4.7% jobless rate compared to 12.1% averaged in 2010. Its recent decline reflects 1.1% y/y growth in employment and little y/y change in the size of the labor pool. New York's unemployment rate recently ticked up to 4.5%. Employment grew a quickened 2.0% y/y against accelerated 1.7% growth in the labor force.

At the low end of the unemployment range stood Massachusetts at 4.3% where employment grew 2.7% y/y, the same as the labor force. Unemployment in New Jersey at 4.1% reflected sub-par 1.1% growth in employment; however, the labor force remained little changed y/y, its size down nearly two percent since 2012. Maine's unemployment rate recently rose to 3.5% as employment and labor force growth decelerated. Indiana's jobless rate of 3.0% also was down sharply from a 10.4% high in 2009 as employment grew 1.7% y/y and the labor force held steady y/y. Unemployment in Colorado plummeted to the country's low at 2.3% as 4.1% growth in employment was accompanied by 2.9% growth in the labor force.

Amongst other large states, Arizona's 5.1% rate of unemployment reflected 2.9% y/y employment growth and a 2.7% gain in the size of the labor force. Texas unemployment of 4.6% occurred as employment and the labor force grew 1.7% y/y. Similarly, North Carolina's unemployment rate of 4.2% was the lowest since 2000 as employment grew 1.9% y/y against 1.1% labor force growth. At the low end of the range amongst large states was Wisconsin. It experienced 3.1% unemployment as employment rose 2.6% y/y, still nearly twice the growth in the labor force.

Within large cities, New York City's 4.4% jobless rate compared to a 2009 high of 10.2%. This past year's rate decline reflected accelerated 4.0% employment growth and a 3.0% y/y gain in the labor force. Unemployment around Chicago of 4.3% was down from a 2010 high of 11.4%. The city's low jobless rate reflected, however, no change in employment this past year set against a 1.6% y/y decline in the labor force. The 4.4% unemployment rate around Los Angeles was the product of 2.5% y/y employment growth and labor force growth of 1.6% y/y. Cleveland's unemployment rate recently increased to 5.9% from 5.0% during all of 2015 as employment was little changed y/y while the labor force grew 1.0% y/y. In Washington state, Seattle's unemployment rate of 3.4% reflected 2.0% y/y employment growth and a 1.3% rise in the labor force.

State unemployment figures are available in Haver's EMPLR database.