The US Bureau of Labor Statistics (BLS) reported unemployment rates increased in six states, declined in two, and remained stable in 42 states and the District of Columbia in December 2024.
Over the past year, 27 states and the District experienced jobless rate increases, six states saw declines, and 17 states had little change.
The national unemployment rate remained steady at 4.1% in December but was 0.3 percentage points higher than in December 2023.
State-Level Unemployment Trends
- Lowest Unemployment Rate: South Dakota at 1.9%
- Highest Unemployment Rate: Nevada at 5.7%, followed by California and the District of Columbia at 5.5%
- 21 states had lower unemployment rates than the national average.
- 5 states and the District of Columbia had higher rates
- 24 states had rates that were not significantly different from the national figure
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Jobless Rate Increases
Alabama and Mississippi saw the largest increases at +0.2 percentage points each.
Colorado, Maine, Massachusetts, and Pennsylvania had smaller increases.
Jobless Rate Decreases
Minnesota (-0.2 percentage points)
Montana (-0.1 percentage points)
Annual Unemployment Rate Changes (December 2023 – December 2024):
Largest Increase: South Carolina (+1.7 percentage points)
Largest Decrease: Connecticut (-1.2 percentage points)
Other notable increases were seen in Indiana, Kansas, Rhode Island, and Utah.
Only six states recorded unemployment rate decreases over the year.
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Employment Growth Remains Limited
Nonfarm payroll employment saw little change across most states:
Increased in two states:
- Texas (+37,500 jobs, +0.3%)
- Missouri (+11,200 jobs, +0.4%)
- Unchanged in 48 states and D.C.
Employment grew in 33 states from December 2023 to December 2024.
Top job gains by state
Texas: +284,200
California: +180,500
Florida: +147,900
Largest Percentage Growth:
Idaho (+3.6%)
Missouri and South Carolina (+2.8% each)
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Key Takeaways
Jobless rates increased in six states in December, with Alabama and Mississippi seeing the largest jumps.
Texas and Missouri were the only states to see job growth, while the rest remained stagnant.
South Dakota had the lowest unemployment rate (1.9%), while Nevada had the highest (5.7%).
Colorado’s employment data will be suspended, impacting national reports.
Upcoming revisions in 2025 will adjust historical employment and unemployment figures.
With economic conditions fluctuating, labor market trends will remain a critical focus in early 2025. More updates are expected in the coming months as revised data becomes available.
