State Unemployment by Race and Ethnicity

The labor market and economy remain strong; softening leaves room for further growth; stubborn disparities persist

Key numbers • 2024 Q3

D.C. Highest Black-white unemployment ratio 4.5-to-1
D.C. Highest Hispanic-white unemployment ratio 2.6-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 Q3 • Updated November 2024

The third quarter of 2024 saw further confirmation of a strong, but softening, overall labor market and economy, though with stubborn disparities across groups 

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 third 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 (*). These estimates should be interpreted with caution as they may be less precise or representative measures of state-specific conditions than those calculated in states with larger sample sizes. The full methodological update is detailed in our technical report.1

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

While the labor market remains strong, continued softening and persistent racial gaps through the third quarter of the year show the Fed was right to cut rates in September 

The U.S. economy and labor market remained in a strong, though softening, position through the third quarter of 2024. The national unemployment rate across all workers rose slightly to 4.2% in 2024 Q3, up from 4.0% in the second quarter. D.C. and Nevada had the highest overall unemployment rates at 5.6% and 5.5% respectively, while South Dakota and Vermont had the lowest rates at 2.0% and 2.2%. No state saw overall unemployment rate changes greater than 1 percentage point between the second and third quarters of 2024.  

With employment increasing consistently across the quarter and the unemployment rate remaining close to 4.0%, there is little doubt that the U.S. economy and labor market are in a very strong position. Inflation has been brought under control, down to 2.4% as of September 2024. GDP increased by 2.8% this quarter as well, consistent with a healthy economy driven by strong consumer spending. Each of these markers of a strong economy also helps set the stage for increases in equity across groups in the future, as reducing economic disparities becomes more difficult in the context of economic crisis. 

Overall unemployment rates 2024 Q3

Highest: D.C. (5.6%),  Nev. (5.5%)

Lowest:  S.D. (2.0%), Vt. (2.2%)  

National: 4.2%

That said, the labor market and economy are both showing consistent strength, with no major changes in labor market conditions from quarter to quarter. Most states are maintaining low unemployment rates, though for some groups, rates are slightly increasing. This softening that has been observed over the past two quarters was enough justification for the Federal Reserve to cut interest rates in September, relaxing pressure on the economy to allow growth where things may be beginning to stall. With inflation no longer increasing, giving space for this historically long period of low unemployment to continue is a sound strategy for bringing more people into the labor market to share in that growth. However, more structural change will be needed to push through the persistent disparities we are still observing across groups.  

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2024 Q3

state All White Black Hispanic AAPI
United States 4.2% 3.3% 6.5% 5.3% 3.7%
Alabama 2.8% 2.3% 4.3% 3.6%* 2.5%*
Alaska 4.6% 2.8% 7.1%* 5.3%* 3.8%
Arizona 3.4% 2.8% 4.6%* 4.1% 3.0%*
Arkansas 3.3% 3.0% 4.8% 4.0%* 2.9%*
California 5.3% 4.8% 7.5% 6.1% 3.8%
Colorado 4.0% 3.4% 6.8%* 5.0% 3.5%*
Connecticut 3.4% 3.2% 4.8%* 4.3% 3.0%*
Delaware 4.2% 3.4% 5.0% 5.4%* 3.7%*
Florida 3.3% 2.7% 5.2% 3.3% 2.9%*
Georgia 3.5% 2.4% 5.1% 4.0%* 3.1%*
Hawaii 2.9% 3.5% 4.5%* 3.6%* 2.6%
Idaho 3.5% 3.4% 5.5%* 4.0% 3.1%*
Illinois 5.3% 4.1% 8.3% 6.9% 4.8%
Indiana 4.2% 3.3% 7.4% 5.8%* 3.7%*
Iowa 2.9% 2.3% 5.0%* 4.0%* 2.5%*
Kansas 3.3% 2.8% 5.6%* 4.2%* 2.9%*
Kentucky 4.8% 3.4% 10.9% 6.1%* 4.2%*
Louisiana 3.9% 2.7% 5.8% 4.8% 3.4%*
Maine 2.8% 2.7% 4.3%* 3.5%* 2.5%*
Maryland 2.9% 2.1% 3.8% 3.6%* 2.6%*
Massachusetts 3.7% 3.4% 4.9% 4.4% 3.8%
Michigan 4.5% 3.8% 7.7% 5.6% 3.9%*
Minnesota 3.3% 2.8% 5.2%* 4.2%* 2.9%*
Mississippi 2.7% 2.2% 3.5% 3.4%* 2.4%*
Missouri 3.9% 3.0% 7.4% 4.9%* 3.4%*
Montana 3.2% 2.8% 5.0%* 4.0%* 2.8%*
Nebraska 2.7% 2.2% 4.1%* 3.8%* 2.4%*
Nevada 5.5% 5.0% 7.0% 5.5% 4.7%
New Hampshire 2.5% 2.6% 3.9%* 3.2%* 2.2%*
New Jersey 4.7% 3.9% 7.4% 4.5% 5.4%
New Mexico 4.1% 2.9% 6.0%* 3.9% 3.6%*
New York 4.4% 3.0% 8.1% 6.4% 3.0%
North Carolina 3.8% 3.0% 6.2% 3.9% 3.3%*
North Dakota 2.3% 1.7% 4.2%* 2.9%* 2.0%*
Ohio 4.5% 3.6% 9.3% 5.9%* 4.0%*
Oklahoma 3.4% 3.2% 5.3%* 4.2% 3.0%*
Oregon 4.0% 3.8% 6.3%* 5.1% 3.4%*
Pennsylvania 3.4% 2.9% 5.1% 6.8% 3.0%*
Rhode Island 4.6% 4.1% 7.1%* 6.2% 4.0%*
South Carolina 4.2% 3.1% 7.1% 5.3%* 3.7%*
South Dakota 2.0% 1.6% 3.1%* 2.5%* 1.8%*
Tennessee 3.1% 2.6% 5.0% 3.8%* 2.7%*
Texas 4.1% 2.8% 6.5% 4.6% 3.7%
Utah 3.3% 2.8% 5.2%* 4.6% 2.9%*
Vermont 2.2% 2.1% 3.4%* 2.7%* 1.9%*
Virginia 2.8% 2.0% 4.8% 3.5% 2.5%*
Washington 4.8% 4.5% 7.0%* 7.3% 3.8%
Washington D.C. 5.6% 2.4% 10.8% 6.3% 5.0%*
West Virginia 4.2% 4.2% 6.8%* 5.3%* 3.7%*
Wisconsin 2.9% 2.4% 5.9%* 4.0%* 2.6%*
Wyoming 3.0% 2.5% 4.7%* 4.9% 2.6%*

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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Third-quarter 2024 trends among white workers 

Every state in the third quarter of 2024 had a white unemployment rate at or below 5.0%. Nevada and California had the highest unemployment rates for white workers at 5.0% and 4.8% respectively, while South and North Dakota had the lowest white unemployment rates at 1.6% and 1.7% respectively. The national white unemployment rate rose slightly to 3.3%, from 3.2% in the second quarter. Overall unemployment rates across states for white workers were largely unchanged, with no states seeing a change in the white unemployment rate of more than 1 percentage point.    

White unemployment rates 2024 Q3

Highest: Nev. (5.0%) ,Calif. (4.8%)

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

National: 3.3%

Third-quarter 2024 trends among Black workers 

Kentucky and D.C. both had Black unemployment rates above 10.0% this quarter, at 10.9% and 10.8% respectively. Mississippi had the lowest unemployment rate for Black workers among the states with large enough sample sizes for consistent estimates, at 3.5%. South Dakota and Vermont had lower Black unemployment rates at 3.1% and 3.4% respectively, though those states have relatively low sample sizes that make estimates less precise. Nationally the Black unemployment rate rose to 6.5% from 6.3% in the second quarter. While most states saw little change in their Black unemployment rates, Indiana, Michigan, and South Carolina all saw increases of over one percentage point. 

Black unemployment rates 2024 Q3

Highest: Ky. (10.9%), D.C. (10.8%)

Lowest: S.D.* (3.1%), Vt.* (3.4%), Miss. (3.5%)

National: 6.5%

The national Black-white unemployment ratio for 2024 Q3 remained at 2.0-to-1, meaning that Black workers were twice as likely as their white counterparts to be unemployed nationally over the quarter. D.C. maintained its position as having the largest Black-white unemployment ratio in the third quarter, rising to 4.5-to-1 from 4.0-to-1 in the previous quarter. Nevada had the lowest Black-white unemployment ratio among states with large enough sample sizes for more precise state-specific estimates, at 1.4-to-1. Hawaii had a lower Black-white unemployment ratio at 1.3-to-1, though that state has a relatively low sample size of Black workers. There are no states where Black and white workers are equally likely to be unemployed. 

Black-white unemployment ratios 2024 Q3

Highest: D.C. (4.5-to-1)

Lowest: Hawaii* (1.3-to-1); Nev. (1.4-to-1)

National: 2.0-to-1

Third-quarter 2024 trends among Hispanic workers

Eight states (including D.C.) had Hispanic unemployment rates above 6.0% in the third quarter of 2024, up from just three states in the second quarter. Washington state, Illinois, and Pennsylvania had the highest Hispanic unemployment rates at 7.3%, 6.9%, and 6.8% respectively. Florida and Virginia had the lowest Hispanic unemployment rates among states with sufficient sample sizes for more precise state-specific estimates, at 3.3% and 3.5% respectively. South Dakota had the lowest rate among all states, though the Hispanic worker sample size there is relatively small. The national Hispanic unemployment rate rose to 5.3% from 5.0% in the previous quarter. Illinois and South Carolina saw increases of 1 percentage point or more in their Hispanic unemployment rates, though South Carolina’s estimates may be less precise than estimates in states with a larger Hispanic worker population.  

Hispanic unemployment rates 2024 Q3

Highest: Wash. (7.3%); Ill. (6.9%)., Pa. (6.8%)

Lowest: S.D.* (2.5%), Fla. (3.3%), Va. (3.5%)

National: 5.3%

In the third quarter of 2024, the nationwide Hispanic-white unemployment ratio maintained its position at 1.6-to-1, meaning Hispanic workers overall were 60% more likely to face unemployment than their white counterparts. D.C. and Pennsylvania had the highest Hispanic-white unemployment ratios, at 2.6-to-1 and 2.4-to-1 respectively. Hispanic and white unemployment rates were essentially equal in Nevada and Hawaii, with Hispanic-white unemployment ratios of 1.1-to-1 and 1-to-1 respectively, though Hawaii’s Hispanic worker sample size was relatively small.  

Hispanic-white unemployment ratios 2024 Q3

Highest: D.C. (2.6-to-1), Pa. (2.4-to-1)

Lowest:  Hawaii* (1-to-1); Nev. (1.1-to-1)

National: 1.6-to-1

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

The AAPI unemployment rate was highest in New Jersey in the third quarter of 2024, at 5.4%. Only New Jersey and D.C. had an AAPI unemployment rate at or above 5.0%, though D.C.’s AAPI worker sample size is relatively small. Hawaii had the lowest AAPI unemployment rate amongst the states with large enough AAPI sample sizes for more precise state-specific estimates, at 2.6%. South Dakota and Vermont had rates below 2.0%, at 1.8% and 1.9% respectively, though those states had AAPI sample sizes too small for precise state-specific estimates. Nationally the AAPI unemployment rate increased to 3.7% in the third quarter from 3.4% in the second quarter. Most states saw slight increases (less than 1 percentage point) in their AAPI unemployment rates between the second and third quarters of 2024.  

AAPI unemployment rates 2024 Q3

Highest: N.J. (5.4%), D.C.* (5.0%)

Lowest: S.D.* (1.8%), Ver.* (1.9%), Hawaii (2.6%)

National: 3.7%

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2024 Q3 (percentage points)

 

State All White Black Hispanic AAPI
United States 0.4 0.2 0.3 0.7 0.7
Alabama -0.5 -0.6 -0.4 -0.4* -0.1*
Alaska -0.9 -0.7 -1.8* -0.7* -0.1
Arizona -1.4 -1.1 -2.9* -1.1 -1.2*
Arkansas -0.7 -0.7 -1.6 -0.4* -0.2*
California 0.5 1.0 0.9 0.6 -0.4
Colorado 0.8 0.6 2.1* 1.0 1.0*
Connecticut -0.4 -0.3 -1.4* -0.2 -0.0*
Delaware 0.1 0.5 -2.6 1.0* 0.5*
District of Columbia -0.0 0.4 -0.8 1.9 0.5*
Florida -0.1 0.1 -1.1 0.0 0.6*
Georgia -0.1 0.0 -0.7 0.0* 0.3*
Hawaii 0.7 1.2 1.0* 0.8* 0.7
Idaho 0.8 0.8 1.0* 0.4 0.9*
Illinois 1.0 0.7 -0.5 2.2 1.8
Indiana 0.8 0.2 2.5 1.7* 1.0*
Iowa 0.2 0.1 -0.0* 0.6* 0.4*
Kansas 0.2 -0.0 0.3* 0.5* 0.4*
Kentucky 0.7 -0.6 4.6 1.1* 1.0*
Louisiana -1.5 -0.7 -3.2 -2.1 -0.8*
Maine -0.4 -0.2 -0.9* -0.3* -0.0*
Maryland -0.5 -0.7 -0.9 -0.3* 0.1*
Massachusetts 0.7 0.5 1.0 0.2 2.1
Michigan 0.8 0.5 1.0 1.2 1.0*
Minnesota -0.2 -0.5 -0.4* -0.0* 0.2*
Mississippi -3.0 -1.1 -6.5 -3.4* -2.1*
Missouri 0.4 0.0 1.8 0.8* 0.7*
Montana -0.3 -0.4 -0.8* -0.2* 0.0*
Nebraska -0.8 -0.6 -1.5* -0.8* -0.4*
Nevada 0.2 -0.0 -1.4 0.8 -0.2
New Hampshire -0.1 0.1 -0.3* 0.1* 0.2*
New Jersey 0.7 0.6 1.0 -0.2 1.7
New Mexico -1.3 -1.2 -2.6* -2.1 -0.7*
New York 0.2 -0.5 1.6 1.1 1.1
North Carolina -0.1 -0.1 0.4 -1.7 0.3*
North Dakota 0.1 -0.2 0.6* 0.2* 0.3*
Ohio -0.1 -0.1 1.1 -0.2* 0.4*
Oklahoma 0.3 0.5 -0.2* 0.4 0.5*
Oregon 0.4 0.4 0.4* 1.1 0.2*
Pennsylvania -1.3 -1.1 -3.7 0.0 -0.7*
Rhode Island 0.9 0.9 1.1* 0.7 1.1*
South Carolina 1.3 0.6 3.2 1.8* 1.4*
South Dakota -0.5 0.2 -1.0* -0.5* -0.2*
Tennessee -0.4 -0.2 -1.7 -0.3* -0.0*
Texas 0.1 0.0 0.3 -0.4 0.9
Utah 0.8 0.3 1.1* 1.9 1.0*
Vermont 0.0 -0.0 -0.2* 0.1* 0.2*
Virginia -0.2 -0.5 0.8 -0.2 0.0*
Washington 0.6 0.7 0.5* 1.9 0.8
West Virginia -1.1 -0.9 -2.0* -1.1* -0.5*
Wisconsin -0.1 -0.1 0.0* 0.1* 0.2*
Wyoming -1.6 -1.5 -2.9* 0.3 -1.0*

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 Q3

State Black-white ratio Hispanic-white ratio
United States 2.0 1.6
Alabama 1.9 1.6*
Alaska 2.6* 1.9*
Arizona 1.6* 1.4
Arkansas 1.6 1.3*
California 1.6 1.3
Colorado 2.0* 1.5
Connecticut 1.5* 1.4
Delaware 1.5 1.6*
District of Columbia 4.5 2.6
Florida 1.9 1.2
Georgia 2.1 1.7*
Hawaii 1.3* 1.0*
Idaho 1.6* 1.2
Illinois 2.0 1.7
Indiana 2.3 1.8*
Iowa 2.1* 1.7*
Kansas 2.0* 1.5*
Kentucky 3.2 1.8*
Louisiana 2.1 1.8
Maine 1.6* 1.3*
Maryland 1.8 1.8*
Massachusetts 1.5 1.3
Michigan 2.0 1.5
Minnesota 1.9* 1.5*
Mississippi 1.6 1.6*
Missouri 2.4 1.6*
Montana 1.8* 1.4*
Nebraska 1.9* 1.7*
Nevada 1.4 1.1
New Hampshire 1.5* 1.2*
New Jersey 1.9 1.2
New Mexico 2.1* 1.4
New York 2.7 2.1
North Carolina 2.1 1.3
North Dakota 2.4* 1.6*
Ohio 2.6 1.6*
Oklahoma 1.7* 1.3
Oregon 1.6* 1.3
Pennsylvania 1.8 2.4
Rhode Island 1.8* 1.5
South Carolina 2.3 1.7*
South Dakota 1.9* 1.6*
Tennessee 1.9 1.5*
Texas 2.3 1.6
Utah 1.9* 1.7
Vermont 1.6* 1.3*
Virginia 2.4 1.8
Washington 1.5* 1.6
West Virginia 1.6* 1.3*
Wisconsin 2.5* 1.7*
Wyoming 1.9* 2.0

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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