State Unemployment by Race and Ethnicity

Softening, but strong, labor market; robust growth; persistent gaps across groups

Key numbers • 2024 Q2

D.C. Highest Black-white unemployment ratio 4.0-to-1
Pa. & Wyo. Highest Hispanic-white unemployment ratio 2.3-to-1
U.S. National Black-white unemployment ratio 2.0-to-1
U.S. National Hispanic-white unemployment ratio 1.6-to-1

2024 Q2 • Updated August 2024

The second quarter of 2024 saw slight softening in a strong labor market as unemployment rates increased across groups and disparities remained unchanged

By Kyle K. Moore

EPI analyzes national and state unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps on a quarterly basis to generate a consistent sample to create reliable and precise estimates of unemployment rates by race and ethnicity at the state level.

We report estimates for all states and subgroups, flagging those for which constructed unemployment rates are heavily weighted by national–level data with an asterisk (*) (see Methodological note). The following analysis contains data on the second quarter of 2024. 

Methodological note

As of 2022 Q2, EPI has updated its methodology for constructing state-level unemployment rates and ratios by race/ethnicity, with the goal of providing a more consistent set of states for analysis from quarter to quarter. The new methodology uses a longer time horizon of state-level unemployment data from the Current Population Survey (12 months vs. 6 months) and leverages national-level data to better represent state-level race groupings that traditionally have been dropped from the analysis due to low sample size. As a result of this methodological change, reports in this series from 2022 Q2 forward are not directly comparable with reports prior to 2022 Q2. 

In contrast to previous reports, all states now have listed unemployment rates for each of the four analyzed groups for every quarter. However, those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis and are noted as such with an asterisk (*). The full methodological update is detailed in our technical report.1

Second-quarter 2024 state unemployment rates, trends, and ratios 

The combination of a softening labor market and cooling inflation means there’s room for the economy to grow further and narrow unemployment gaps

The U.S. economy is in a strong position in the second quarter of 2024, even though the labor market is softening compared with previous quarters. The national unemployment rate rose to 4.0% in 2024 Q2, up from 3.8% in the first quarter. D.C. and California had the highest overall unemployment rates at 5.3% and 5.2% respectively, while North and South Dakota maintained the lowest unemployment rates, both at 2.0%.

Job reports through the second quarter of the year saw slight upticks in the unemployment rate from month to month, even as the labor market continued to add jobs. This dynamic is indicative of an increase in labor force participation: More people are engaged in the process of working and looking for work than before. Moreover, the 4% unemployment rate itself is historically low, even if it is not as low as the record rates achieved over the last year. We continue to experience one of the strongest labor markets in recent memory.

Overall unemployment rates 2024 Q2

Highest: Calif. (5.3%),  Nev. (5.2%)

Lowest:  N.D., S.D. (2.0%)

National: 4.0%

The current softening of the labor market, however, when combined with slowing inflation means that there is still room to push the economy toward further growth. Economic growth over the second quarter was faster than expected, at 2.8%, but with interest rates as high as they have been in 20 years, a rate cut could create space for new activity to push unemployment rates down. (The housing market, in particular, could benefit from a relaxation in interest rates.) We know that tight labor markets are essential to closing racial gaps in unemployment, so the further we can push rates down, the greater the chance of seeing these long-standing employment disparities begin to close.

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2024 Q2

State All White Black Hispanic AAPI
United States 4.0% 3.2% 6.3% 5.0% 3.4%
Alabama 3.0% 2.5% 4.5% 3.8%* 2.5%*
Alaska 4.5% 2.7% 7.1%* 5.2%* 3.5%
Arizona 3.4% 3.0% 4.8%* 3.9% 2.8%*
Arkansas 3.4% 2.9% 5.2% 4.3%* 2.8%*
California 5.2% 4.8% 8.2% 5.8% 3.8%
Colorado 3.8% 3.1% 6.4%* 5.2% 3.2%*
Connecticut 4.2% 4.0% 6.3%* 4.7% 3.5%*
Delaware 3.9% 3.3% 4.9% 5.1%* 3.3%*
Florida 3.3% 2.6% 5.4% 3.3% 2.7%*
Georgia 3.2% 1.9% 5.2% 3.6%* 2.7%*
Hawaii 3.0% 3.3% 4.7%* 3.8%* 2.8%
Idaho 3.3% 3.1% 5.2%* 4.2% 2.8%*
Illinois 4.9% 3.9% 8.8% 5.4% 4.2%
Indiana 3.7% 2.9% 5.9% 5.2%* 3.1%*
Iowa 2.8% 2.2% 5.3%* 3.7%* 2.4%*
Kansas 2.9% 2.5% 5.0%* 3.8%* 2.5%*
Kentucky 4.6% 3.2% 11.3% 5.8%* 3.9%*
Louisiana 4.1% 3.0% 6.0% 5.1% 3.5%*
Maine 3.0% 2.8% 4.7%* 3.7%* 2.5%*
Maryland 2.7% 2.0% 3.4% 3.4%* 2.4%*
Massachusetts 3.0% 2.7% 4.6% 3.6% 3.4%
Michigan 4.0% 3.6% 5.6% 4.9% 3.4%*
Minnesota 2.8% 2.3% 4.3%* 3.5%* 2.4%*
Mississippi 2.8% 2.2% 3.6% 3.5%* 2.4%*
Missouri 3.5% 2.9% 6.7% 4.4%* 3.0%*
Montana 3.1% 2.7% 4.9%* 3.9%* 2.6%*
Nebraska 2.5% 2.0% 4.0%* 3.5%* 2.1%*
Nevada 5.1% 4.2% 6.2% 5.3% 5.4%
New Hampshire 2.5% 2.6% 4.0%* 3.2%* 2.1%*
New Jersey 4.6% 3.7% 8.1% 4.5% 4.8%
New Mexico 3.8% 3.1% 5.6%* 3.7% 3.2%*
New York 4.2% 3.1% 7.3% 6.4% 2.4%
North Carolina 3.6% 2.7% 6.0% 3.8% 3.0%*
North Dakota 2.0% 1.6% 3.8%* 2.6%* 1.7%*
Ohio 4.2% 3.3% 9.1% 5.5%* 3.5%*
Oklahoma 3.5% 3.1% 5.5%* 4.3% 2.9%*
Oregon 4.2% 4.1% 6.6%* 4.7% 3.3%*
Pennsylvania 3.4% 2.8% 5.6% 6.4% 2.9%*
Rhode Island 4.2% 3.8% 6.7%* 5.7% 3.6%*
South Carolina 3.4% 2.4% 5.6% 4.3%* 2.9%*
South Dakota 2.0% 1.7% 3.1%* 2.5%* 1.7%*
Tennessee 3.0% 2.5% 5.0% 3.7%* 2.6%*
Texas 4.0% 2.9% 6.2% 4.6% 2.8%
Utah 2.9% 2.3% 4.6%* 4.1% 2.5%*
Vermont 2.1% 2.0% 3.3%* 2.6%* 1.8%*
Virginia 2.7% 2.2% 4.2% 3.3% 2.3%*
Washington 4.9% 4.6% 7.1%* 7.4% 3.6%
Washington D.C. 5.3% 2.5% 9.9% 5.4% 4.5%*
West Virginia 4.2% 4.2% 6.9%* 5.3%* 3.5%*
Wisconsin 2.9% 2.2% 5.6%* 4.4%* 2.5%*
Wyoming 2.9% 2.3% 4.5%* 5.3% 2.4%*

Notes: AAPI stands for Asian American and Pacific Islander. Unemployment rates for each demographic group are produced from a weighted average of state and national unemployment trends. Those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis. See methodological note for more detail. 

Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

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Second-quarter 2024 trends among white workers 

Every state in the second quarter of 2024 had a white unemployment rate below 5.0%. The two states with the highest unemployment rates for white workers, California and Washington state, were unchanged from 2024 Q1 at 4.8% and 4.6% respectively. North Dakota, South Dakota, and Georgia were the states with the lowest white unemployment rates, and the three states with white unemployment rates below 2.0%—at 1.6%, 1.7%, and 1.9% respectively. The national white unemployment rate rose slightly once again to 3.2%, from 3.1% in the previous quarter.

White unemployment rates 2024 Q2

Highest: Calif. (4.8%), Wash.(4.6%)

Lowest: N.D. (1.6%) , S.D. (1.7%), Ga. (1.9%)

National: 3.2%

Second-quarter 2024 trends among Black workers 

Kentucky was once again the only state with a Black unemployment rate above 10.0% in the second quarter of 2024, rising to 11.3% from 10.4%. D.C.’s Black unemployment rate was just under 10.0% at 9.9%. Among those states with large enough sample sizes for precise estimates, Maryland once again had the lowest Black unemployment rate at 3.4%, up from 3.3% in the previous quarter. South Dakota and Vermont had lower unemployment rates at 3.1% and 3.3% respectively, but those states have relatively low sample sizes that make estimates less precise. The national Black unemployment rate rose once again to 6.3% from 6.0%.

Black unemployment rates 2024 Q2

Highest: Ky. (11.3%), D.C. (9.9%)

Lowest: S.D.* (3.1%), Vt.* (3.3%), Md. (3.4%)

National: 6.3%

The national Black-white unemployment ratio for 2024 Q2 remained at its usual rate of 2.0-to-1, meaning that nationally once again Black job seekers were twice as likely to not find work as their white counterparts. D.C. maintained its position of having the highest Black-white unemployment ratio, though that ratio fell again in the second quarter of the year to 4.0-to-1 from 4.2-to-1. Nevada and Delaware had the lowest Black-white unemployment ratios among states with sufficient sample size for precise estimates with a ratio of 1.5-to-1—meaning Black workers were 50% more likely than white workers to be unemployed in those states. Hawaii technically had a lower Black-white unemployment ratio at 1.4-to-1, but that state has a relatively low sample size of Black workers. There are still no states where Black and white workers are equally likely to be unemployed.

Black-white unemployment ratios 2024 Q2

Highest: D.C. (4.0-to-1)

Lowest: Hawaii* (1.4-to-1); Del., Nev. (1.5-to-1)

National: 2.0-to-1

Second-quarter 2024 trends among Hispanic workers

In the second quarter of 2024, Washington state, New York, and Pennsylvania all had Hispanic unemployment rates above 6.0%, at 7.4%, 6.4%, and 6.4% respectively. Florida and Virginia had the lowest Hispanic unemployment rates among those states with sufficient sample sizes for precise estimates, both at 3.3%. South Dakota’s rate of 2.5% is technically lower, though the sample size of Hispanic workers in South Dakota is too small for precise estimates. The national Hispanic unemployment rate also rose to 5.0% in 2024 Q2, from 4.7% in the first quarter of the year.

Hispanic unemployment rates 2024 Q2

Highest: Wash. (7.4%); N.Y., Pa. (6.4%)

Lowest: S.D.* (2.5%), Fla., Va. (3.3%)

National: 5.0%

In the second quarter of 2024 the nationwide Hispanic-white unemployment ratio maintained its position at 1.6-to-1, meaning overall Hispanic workers were still 60% more likely than their white counterparts to be unemployed. Pennsylvania and Wyoming had the highest Hispanic-white unemployment ratios at 2.3-to-1, followed closely by D.C. at 2.2-to-1. Six states with large enough sample sizes for precise estimates saw a Hispanic-white unemployment ratio of 1.2-to-1: California, Connecticut, Florida, New Jersey, New Mexico, and Oregon. Hawaii and New Hampshire also had low Hispanic-white unemployment ratios, at 1.1-to-1 and 1.2-to-1 respectively, but those states had relatively small Hispanic worker sample sizes.

Hispanic-white unemployment ratios 2024 Q2

Highest: Pa., Wyo. (2.3-to-1); D.C. (2.2-to-1) 

Lowest:  Hawaii* (1.1-to-1); Calif., Conn., Fla., N.H.*, N.J., N.M. Ore. (1.2-to-1)

National: 1.6-to-1

Second-quarter 2024 trends among Asian American and Pacific Islander (AAPI) workers

The AAPI unemployment rate was highest in Nevada, maintaining its rate of 5.4%, and New Jersey at 4.8%. AAPI unemployment rates are on the rise again: 29 states saw AAPI unemployment rates below 3.0% in the second quarter of 2024, up from 21 states in the first quarter. North and South Dakota maintained the lowest AAPI unemployment rates at 1.7%, though the sample sizes were too small to provide precise estimates. New York’s AAPI unemployment rate was lowest among the states with large enough AAPI worker samples in the second quarter of 2024, at 2.4%, down from 3.0% in the first quarter.

AAPI unemployment rates 2024 Q2

Highest: Nev., (5.4%), N.J. (4.8%)

Lowest: N.D.*, S.D.* (1.7%); N.Y. (2.4%)

National: 3.4%

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2024 Q2 (percentage points)

 

State All White Black Hispanic AAPI
United States 0.2 0.0 0.0 0.4 0.4
Alabama -0.3 -0.4 -0.2 -0.2* -0.1*
Alaska -0.9 -0.8 -1.8* -0.7* -0.4
Arizona -1.4 -0.9 -2.7* -1.3 -1.3*
Arkansas -0.6 -0.7 -1.2 -0.0* -0.3*
California 0.5 0.9 1.6 0.4 -0.4
Colorado 0.6 0.3 1.7* 1.2 0.7*
Connecticut 0.4 0.6 0.1* 0.1 0.5*
Delaware -0.1 0.3 -2.7 0.6* 0.1*
District of Columbia -0.4 0.5 -1.7 1.0 0.0*
Florida -0.1 -0.0 -0.9 0.1 0.3*
Georgia -0.4 -0.4 -0.7 -0.5* -0.1*
Hawaii 0.8 1.0 1.2* 0.9* 0.8
Idaho 0.6 0.5 0.7* 0.6 0.6*
Illinois 0.7 0.6 0.0 0.7 1.2
Indiana 0.3 -0.1 1.1 1.1* 0.5*
Iowa 0.1 0.0 0.2* 0.2* 0.3*
Kansas -0.2 -0.3 -0.4* 0.1* 0.0*
Kentucky 0.5 -0.8 4.9 0.8* 0.6*
Louisiana -1.3 -0.5 -3.0 -1.9 -0.8*
Maine -0.2 -0.1 -0.6* -0.1* -0.0*
Maryland -0.7 -0.7 -1.2 -0.5* -0.1*
Massachusetts 0.0 -0.2 0.6 -0.6 1.7
Michigan 0.3 0.3 -1.1 0.5 0.4*
Minnesota -0.7 -0.9 -1.3* -0.7* -0.4*
Mississippi -3.0 -1.1 -6.5 -3.4* -2.2*
Missouri 0.1 -0.1 1.0 0.3* 0.3*
Montana -0.4 -0.6 -0.9* -0.3* -0.2*
Nebraska -0.9 -0.7 -1.7* -1.1* -0.6*
Nevada -0.2 -0.8 -2.2 0.7 0.5
New Hampshire -0.1 0.1 -0.3* 0.1* 0.1*
New Jersey 0.6 0.4 1.7 -0.2 1.1
New Mexico -1.6 -0.9 -3.0* -2.4 -1.0*
New York 0.1 -0.5 0.8 1.1 0.5
North Carolina -0.3 -0.3 0.3 -1.8 -0.0*
North Dakota -0.2 -0.3 0.3* -0.1* -0.0*
Ohio -0.4 -0.4 0.9 -0.6* -0.1*
Oklahoma 0.3 0.5 -0.0* 0.5 0.4*
Oregon 0.6 0.6 0.7* 0.7 0.2*
Pennsylvania -1.3 -1.1 -3.3 -0.3 -0.8*
Rhode Island 0.6 0.7 0.7* 0.2 0.7*
South Carolina 0.5 -0.1 1.7 0.8* 0.6*
South Dakota -0.5 0.3 -0.9* -0.5* -0.3*
Tennessee -0.5 -0.3 -1.7 -0.3* -0.2*
Texas -0.0 0.1 0.0 -0.4 0.1
Utah 0.4 -0.1 0.5* 1.3 0.5*
Vermont -0.1 -0.1 -0.2* 0.0* 0.1*
Virginia -0.2 -0.2 0.2 -0.5 -0.2*
Washington 0.6 0.8 0.6* 2.1 0.5
West Virginia -1.1 -0.9 -1.9* -1.1* -0.6*
Wisconsin -0.2 -0.3 -0.4* 0.5* 0.0*
Wyoming -1.7 -1.7 -3.0* 0.7 -1.2*

Notes: Unemployment rates for each demographic group are produced from a weighted average of state and national unemployment trends. Those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis, and are noted as such with an asterisk (*). See methodological note for more detail. 

Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

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Table 2

Black-white and Hispanic-white state unemployment rate ratios, 2024 Q2

State Black-white ratio Hispanic-white ratio
United States 2.0 1.6
Alabama 1.8 1.5*
Alaska 2.7* 2.0*
Arizona 1.6* 1.3
Arkansas 1.8 1.5*
California 1.7 1.2
Colorado 2.1* 1.7
Connecticut 1.6* 1.2
Delaware 1.5 1.6*
District of Columbia 4.0 2.2
Florida 2.1 1.2
Georgia 2.7 1.8*
Hawaii 1.4* 1.1*
Idaho 1.7* 1.3
Illinois 2.2 1.4
Indiana 2.0 1.8*
Iowa 2.4* 1.6*
Kansas 2.0* 1.5*
Kentucky 3.5 1.8*
Louisiana 2.0 1.7
Maine 1.7* 1.3*
Maryland 1.7 1.7*
Massachusetts 1.7 1.4
Michigan 1.6 1.4
Minnesota 1.8* 1.5*
Mississippi 1.6 1.6*
Missouri 2.3 1.5*
Montana 1.8* 1.4*
Nebraska 2.0* 1.8*
Nevada 1.5 1.3
New Hampshire 1.6* 1.2*
New Jersey 2.2 1.2
New Mexico 1.8* 1.2
New York 2.4 2.1
North Carolina 2.2 1.4
North Dakota 2.4* 1.6*
Ohio 2.8 1.7*
Oklahoma 1.7* 1.4
Oregon 1.6* 1.2
Pennsylvania 2.0 2.3
Rhode Island 1.7* 1.5
South Carolina 2.3 1.8*
South Dakota 1.8* 1.5*
Tennessee 2.0 1.5*
Texas 2.1 1.6
Utah 2.0* 1.8
Vermont 1.6* 1.3*
Virginia 1.9 1.5
Washington 1.5* 1.6
West Virginia 1.6* 1.3*
Wisconsin 2.6* 2.0*
Wyoming 2.0* 2.3

Notes: Unemployment rates for each demographic group are produced from a weighted average of state and national unemployment trends. Those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis, and are noted as such with an asterisk (*). See methodological note for more detail. 

Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

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Methodology

The unemployment rate estimates in this report are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics (BLS). The overall state unemployment rates are taken directly from the LAUS. CPS 12-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 12 months of CPS data. We then find the ratio of this subgroup rate to the state (or national) unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

We also leverage national-level data to construct weighted unemployment ratios, utilizing a greater share of national-level data for states with a high amount of volatility in race/ethnicity sample sizes. This allows for more consistent reporting of unemployment rates for Black, Hispanic, and AAPI workers. For more detail on our methodology, see the technical report.

Notes

1. Marokey Sawo and Daniel Perez, Detailing the New Methodology Behind EPI’s Quarterly State Unemployment Rates by Race and Ethnicity Series, Economic Policy Institute, December 2022.

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