In December 2014, the national unemployment rate fell to 5.6 percent, the lowest it’s been since June 2008. Yet, even as the recovery moves ahead slowly, conditions vary greatly across states and across racial and ethnic groups. In December, state unemployment rates ranged from a high of 7.3 percent in the District of Columbia to a low of 2.8 percent in North Dakota. Nationally, African Americans had the highest unemployment rate, at 10.4 percent, followed by Latinos (6.5 percent), whites (4.8 percent), and Asians (4.2 percent, not seasonally adjusted).1
State unemployment rates, by race and ethnicity
Following is an overview of racial unemployment rates and racial unemployment rate gaps by state for the fourth quarter of 2014. We provide this analysis on a quarterly basis in order to generate a sample size large enough to create reliable estimates of unemployment rates by race at the state level. We only report estimates for states where the sample size of these subgroups is large enough to create an accurate estimate.
State unemployment rates, by race/ethnicity and overall, 2014Q4
| State | All | White | Black | Hispanic | Asian |
|---|---|---|---|---|---|
| USA | 5.7% | 4.5% | 11.0% | 6.7% | 4.4% |
| Alaska | 6.5% | 4.8% | NA | NA | NA |
| Alabama | 6.0% | 4.7% | 9.1% | NA | NA |
| Arkansas | 5.9% | 4.9% | 11.9% | NA | NA |
| Arizona | 6.8% | 5.2% | NA | 8.0% | NA |
| California | 7.2% | 6.0% | 14.9% | 7.8% | 5.2% |
| Colorado | 4.1% | 3.3% | NA | 5.2% | NA |
| Connecticut | 6.4% | 5.5% | 11.4% | 10.1% | NA |
| District of Columbia | 7.4% | 2.9% | 15.1% | 3.2% | NA |
| Delaware | 5.9% | 4.9% | 8.6% | NA | NA |
| Florida | 5.8% | 4.6% | 9.6% | 6.3% | NA |
| Georgia | 7.2% | 4.9% | 12.1% | 4.9% | NA |
| Hawaii | 4.0% | 4.2% | NA | NA | 3.1% |
| Iowa | 4.3% | 3.9% | NA | NA | NA |
| Idaho | 3.9% | 3.6% | NA | 5.2% | NA |
| Illinois | 6.4% | 4.8% | 13.6% | 7.7% | 5.2% |
| Indiana | 5.7% | 4.7% | NA | NA | NA |
| Kansas | 4.3% | 3.9% | NA | 4.5% | NA |
| Kentucky | 6.0% | 5.4% | NA | NA | NA |
| Louisiana | 6.5% | 4.3% | 10.5% | NA | NA |
| Massachusetts | 5.8% | 4.5% | NA | 12.5% | 7.6% |
| Maryland | 5.7% | 4.0% | 9.4% | 5.5% | 3.4% |
| Maine | 5.7% | 5.4% | NA | NA | NA |
| Michigan | 6.7% | 5.0% | 16.3% | NA | NA |
| Minnesota | 3.7% | 2.8% | NA | NA | NA |
| Missouri | 5.6% | 4.3% | 13.1% | NA | NA |
| Mississippi | 7.4% | 5.0% | 11.8% | NA | NA |
| Montana | 4.3% | 3.7% | NA | NA | NA |
| North Carolina | 5.9% | 4.8% | 9.7% | 4.7% | NA |
| North Dakota | 2.8% | 2.1% | NA | NA | NA |
| Nebraska | 3.1% | 2.5% | NA | NA | NA |
| New Hampshire | 4.1% | 4.0% | NA | NA | NA |
| New Jersey | 6.4% | 5.1% | 11.2% | 7.7% | 4.7% |
| New Mexico | 6.3% | 4.2% | NA | 6.5% | NA |
| Nevada | 6.9% | 6.7% | NA | 6.0% | 3.8% |
| New York | 5.9% | 4.4% | 11.1% | 7.2% | 4.6% |
| Ohio | 5.0% | 4.0% | 13.0% | NA | NA |
| Oklahoma | 4.4% | 3.4% | NA | 5.7% | NA |
| Oregon | 6.9% | 6.6% | NA | 9.6% | NA |
| Pennsylvania | 5.1% | 4.2% | 11.1% | 7.8% | NA |
| Rhode Island | 7.1% | 6.1% | NA | 12.9% | NA |
| South Carolina | 6.6% | 5.4% | 10.1% | NA | NA |
| South Dakota | 3.3% | 2.6% | NA | NA | NA |
| Tennessee | 6.8% | 6.2% | 10.2% | NA | NA |
| Texas | 4.9% | 3.4% | 9.8% | 5.2% | 3.6% |
| Utah | 3.6% | 3.5% | NA | 4.0% | NA |
| Virginia | 5.0% | 4.5% | 7.5% | 5.6% | 2.8% |
| Vermont | 4.3% | 4.4% | NA | NA | NA |
| Washington | 6.2% | 5.0% | NA | 8.7% | 5.0% |
| Wisconsin | 5.3% | 3.9% | NA | NA | NA |
| West Virginia | 6.3% | 6.3% | NA | NA | NA |
| Wyoming | 4.5% | 4.0% | NA | NA | NA |
Note: The map only reports unemployment rates for state subgroups with sample sizes large enough to create accurate estimates.
Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data
Trends among whites
In the fourth quarter of 2014, the white unemployment rate was lowest in North Dakota (2.1 percent) and highest in Nevada (6.7 percent), as shown in the interactive map, which presents state unemployment rates by race and ethnicity. As shown in Table 1, which displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the fourth quarter of 2014, Nevada was also the state where the white unemployment rate remains most elevated above its pre-recession level—2.3 percentage points higher than in the fourth quarter of 2007. On the other hand, the white unemployment rate is at or below its pre-recession level in 10 states: Colorado, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Texas, and Wisconsin.
Trends among African Americans
The African American unemployment rate was lowest in Virginia (7.5 percent) and highest in Michigan (16.3 percent). By way of comparison, although 7.5 percent is the lowest black unemployment rate in the country, it is still nearly 1 percentage point above the highest white unemployment rate (Nevada’s). Virginia was one of only seven states where the African American unemployment rate was below 10 percent in the fourth quarter of 2014. As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the fourth quarter of 2014, the black–white unemployment rate gap was smallest in Virginia and Tennessee; in those states, the black unemployment rate was 1.7 times the white unemployment rate. The largest gap was in the District of Columbia, where the black unemployment rate was 5.3 times the white rate.
With regard to recovery, the African American unemployment rate is at or below its pre-recession level in Connecticut, Ohio, and South Carolina. But this numerical recovery must be put in proper context because each of these states also had black unemployment rates that were among the highest in the nation before the recession. The unemployment rate remains most elevated above its pre-recession level in the District of Columbia (5.5 percentage points higher). Before the recession, the African American unemployment rate in the District of Columbia was 9.7 percent.
Trends among Hispanics
The Hispanic unemployment rate was highest in Rhode Island (12.9 percent) and lowest in the District of Columbia (3.2 percent). Since 2007, Rhode Island has seen tremendous growth in its Hispanic population, and the state’s Hispanic unemployment rate exceeds its pre-recession level by 5.5 percentage points.2 According to the American Community Survey (ACS), from 2007 to 2013, the Hispanic population in Rhode Island grew by 20.1 percent, while the state’s overall population actually declined slightly. That rate of population growth is likely the result of increased immigration, so the elevated Hispanic unemployment rate partly reflects labor market challenges faced by recent immigrant populations.
The Hispanic unemployment rate is at or below its pre-recession level in Colorado, Georgia, Nevada, and North Carolina. In Colorado, the Hispanic unemployment rate was also lower than the national average in the fourth quarter of 2007, and remains so currently. The Hispanic unemployment rate is lower than the white rate in North Carolina, while the Hispanic–white unemployment rate gap is largest in Massachusetts, where the Hispanic unemployment rate is 2.8 times the white rate.
Trends among Asians
The Asian unemployment rate was lowest in Virginia (2.8 percent) and highest in Massachusetts (7.6 percent). The Asian unemployment rate remains most elevated above pre-recession levels in New Jersey and Maryland (2.4 percentage points, each). All fourth-quarter estimates of the Asian unemployment rate were above pre-recession levels, but in four states—California, Texas, Nevada, and Hawaii—they were within less than 1 percentage point.
Change in state unemployment rates by race and ethnicity, 2007Q4–2014Q4
| State | White | Black | Hispanic | Asian |
|---|---|---|---|---|
| USA | 0.5 | 2.3 | 0.8 | 0.9 |
| Alaska | 0.3 | NA | NA | NA |
| Alabama | 1.7 | 3.9 | NA | NA |
| Arkansas | 0.3 | 3.1 | NA | NA |
| Arizona | 2.1 | NA | 2.4 | NA |
| California | 1.3 | 5.1 | 0.9 | 0.4 |
| Colorado | -0.2 | NA | -0.1 | NA |
| Connecticut | 2.0 | -1.2 | 1.8 | NA |
| District of Columbia | 1.2 | 5.5 | NA | NA |
| Delaware | 1.9 | 3.6 | NA | NA |
| Florida | 0.8 | 3.5 | 0.7 | NA |
| Georgia | 1.6 | 4.0 | -2.1 | NA |
| Hawaii | 0.3 | NA | NA | 0.7 |
| Iowa | 0.4 | NA | NA | NA |
| Idaho | 0.5 | NA | NA | NA |
| Illinois | 0.5 | 1.4 | 2.0 | 1.8 |
| Indiana | 0.5 | NA | NA | NA |
| Kansas | 0.4 | NA | NA | NA |
| Kentucky | 0.2 | NA | NA | NA |
| Louisiana | 2.1 | 2.5 | NA | NA |
| Massachusetts | 0.0 | NA | NA | NA |
| Maryland | 1.3 | 4.0 | 3.5 | 2.4 |
| Maine | 0.6 | NA | NA | NA |
| Michigan | -1.0 | 1.0 | NA | NA |
| Minnesota | -1.4 | NA | NA | NA |
| Missouri | -0.2 | 1.5 | NA | NA |
| Mississippi | 1.2 | 1.0 | NA | NA |
| Montana | 0.5 | NA | NA | NA |
| North Carolina | 0.8 | 1.6 | -1.7 | NA |
| North Dakota | 0.0 | NA | NA | NA |
| Nebraska | -0.1 | NA | NA | NA |
| New Hampshire | 0.6 | NA | NA | NA |
| New Jersey | 1.2 | 2.8 | 2.6 | 2.4 |
| New Mexico | 1.2 | NA | 2.4 | NA |
| Nevada | 2.3 | NA | -0.7 | 0.7 |
| New York | 0.8 | 3.3 | 0.4 | 1.4 |
| Ohio | -0.5 | -0.7 | NA | NA |
| Oklahoma | 0.5 | NA | NA | NA |
| Oregon | 1.3 | NA | NA | NA |
| Pennsylvania | 0.1 | 4.2 | NA | NA |
| Rhode Island | 0.9 | NA | 5.5 | NA |
| South Carolina | 1.7 | -0.7 | NA | NA |
| South Dakota | 0.6 | NA | NA | NA |
| Tennessee | 1.7 | 0.8 | NA | NA |
| Texas | -0.1 | 1.7 | 0.6 | 0.5 |
| Utah | 1.1 | NA | 0.3 | NA |
| Virginia | 1.6 | 2.4 | 2.1 | NA |
| Vermont | 0.3 | NA | NA | NA |
| Washington | 0.4 | NA | 3.0 | 1.3 |
| Wisconsin | -0.1 | NA | NA | NA |
| West Virginia | 2.1 | NA | NA | NA |
| Wyoming | 1.6 | NA | NA | NA |
Note: The table only reports data for state subgroups with sample sizes large enough to create accurate estimates.
Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data
Black–white and Hispanic–white state unemployment rate ratios, 2014Q4
| State | Black–white ratio | Hispanic–white ratio |
|---|---|---|
| USA | 2.5 | 1.5 |
| Alaska | NA | NA |
| Alabama | 1.9 | NA |
| Arkansas | 2.4 | NA |
| Arizona | NA | 1.5 |
| California | 2.5 | 1.3 |
| Colorado | NA | 1.6 |
| Connecticut | 2.1 | 1.8 |
| District of Columbia | 5.3 | 1.1 |
| Delaware | 1.8 | NA |
| Florida | 2.1 | 1.4 |
| Georgia | 2.5 | 1.0 |
| Hawaii | NA | NA |
| Iowa | NA | NA |
| Idaho | NA | 1.4 |
| Illinois | 2.8 | 1.6 |
| Indiana | NA | NA |
| Kansas | NA | 1.2 |
| Kentucky | NA | NA |
| Louisiana | 2.5 | NA |
| Massachusetts | NA | 2.8 |
| Maryland | 2.4 | 1.4 |
| Maine | NA | NA |
| Michigan | 3.2 | NA |
| Minnesota | NA | NA |
| Missouri | 3.1 | NA |
| Mississippi | 2.4 | NA |
| Montana | NA | NA |
| North Carolina | 2.0 | 1.0 |
| North Dakota | NA | NA |
| Nebraska | NA | NA |
| New Hampshire | NA | NA |
| New Jersey | 2.2 | 1.5 |
| New Mexico | NA | 1.6 |
| Nevada | NA | 0.9 |
| New York | 2.5 | 1.6 |
| Ohio | 3.2 | NA |
| Oklahoma | NA | 1.7 |
| Oregon | NA | 1.4 |
| Pennsylvania | 2.6 | 1.8 |
| Rhode Island | NA | 2.1 |
| South Carolina | 1.9 | NA |
| South Dakota | NA | NA |
| Tennessee | 1.7 | NA |
| Texas | 2.9 | 1.5 |
| Utah | NA | 1.2 |
| Virginia | 1.7 | 1.2 |
| Vermont | NA | NA |
| Washington | NA | 1.7 |
| Wisconsin | NA | NA |
| West Virginia | NA | NA |
| Wyoming | NA | NA |
Note: The table only reports data for state subgroups with sample sizes large enough to create accurate estimates.
Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data
Methodology
The unemployment rate estimates in this issue brief are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics. The overall state unemployment rate is taken directly from the LAUS. CPS six-month ratios are applied to LAUS data to calculate the rates by race and ethnicity. For each state subgroup, we calculate the unemployment rate using the past six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares to the state overall.
While this methodology allows us to calculate unemployment-rate estimates at the state level by race by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.
In many states, the sample size of these subgroups is not large enough to create an accurate estimate of their unemployment rate. We only report data for groups which had, on average, a sample size of at least 700 in the labor force for each six-month period.
Endnotes
1. Beginning in January 2015, BLS will provide seasonally adjusted unemployment rates for Asians.
2. In the fourth quarter of 2007, the sample size for the Hispanic workforce in Rhode Island was 659, which is just below our threshold of 700. The Hispanic unemployment rate for Rhode Island in the CPS (before making the adjustments described in the Methodology section) was 6.4 percent, with a margin of error of +/- 1.6 percentage points.
