Economic Indicators State unemployment by race and ethnicity

The fourth quarter of 2022 saw an overall strong labor market with slowing inflation and steady job growth. However, stubborn racial disparities in employment rates persisted in many states. With no indication from the Fed of a reduced pace of rate hikes until at least 2024, it will be important to monitor whether the fight against inflation results in casualties in communities with higher unemployment.

Key numbers • 2022 Q4

D.C. Highest Black–white unemployment ratio 6.8-to-1
D.C. Highest Hispanic–white unemployment ratio 2.2-to-1
U.S. Nationwide Black–white unemployment ratio 2.1-to-1
U.S. Nationwide Hispanic–white unemployment ratio 1.4-to-1

2022 Q4 • Updated March 2023

The fourth-quarter labor market remained strong overall, though persistent racial employment gaps have yet to close 

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 fourth quarter of 2022. 

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. 

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. 

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 (*). This allows for more consistent reporting of unemployment rates for Black, Hispanic, and Asian American and Pacific Islander (AAPI) workers. The full methodological update is detailed in our technical report.1 

Fourth-quarter 2022 state unemployment rates, trends, and ratios 

As we closed the year in 2022, analysts continued to watch for the beginnings of a downturn in the U.S. economy that never came to fruition. GDP growth exceeded expectations, inflation was lower than expected, and job growth continued apace.2 The Federal Reserve’s strategy of hiking interest rates to slow the rate of inflation has yet to cause an economic downturn, despite that rate reaching its highest level in 15 years in December.3 The Fed has given no indication that it will begin to reduce rates or slow its pace of increasing rates until 2024 at the earliest. However, the Fed should continue to monitor the lagged effects of its policy on the labor market and respond quickly if signs of a downturn emerge.  

The national unemployment rate for the fourth quarter of 2022 remained at 3.6%, as in the second and third quarters before it. Nevada (4.9%) and Utah (2.2%) had the highest and lowest state unemployment rates, respectively.  

Overall unemployment rates 2022 Q4 

Highest: Nev. (4.9%)  

Lowest: Utah (2.2%) 

National: 3.6% 

As overall unemployment rates have been stable across quarters, race-specific unemployment trends have remained similarly fixed. The persistence in unemployment rate disparities from quarter to quarter points toward structural issues in the U.S. labor market that must be addressed before these gaps can begin to close.4 These persistent gaps in unemployment rates represent more than just unfairness in the labor market: They present a real risk of severe economic pain for disadvantaged groups in the event of a recession. We should continue to invest in ways that combat employment discrimination to close these disparities, including by adequately funding the EEOC.5

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2022 Q4

State All White Black Hispanic AAPI
United States 3.6% 2.9% 6.1% 4.2% 2.9%
Alabama 2.7% 2.2% 4.0% 3.2%* 2.2%*
Alaska 4.4% 2.7% 7.5%* 4.8%* 3.7%
Arizona 4.0% 3.6% 5.9%* 4.6% 3.1%*
Arkansas 3.6% 3.4% 5.3% 4.1%* 3.0%*
California 4.1% 3.5% 7.5% 4.3% 3.3%
Colorado 3.5% 3.2% 5.9%* 3.2% 2.8%*
Connecticut 4.2% 3.5% 6.9%* 5.6% 3.4%*
Delaware 4.4% 3.4% 7.0% 5.0%* 3.5%*
Florida 2.6% 2.1% 3.8% 2.8% 2.2%*
Georgia 3.0% 2.2% 5.1% 2.7%* 2.4%*
Hawaii 3.3% 3.5% 5.5%* 3.8%* 3.0%
Idaho 2.9% 2.7% 5.0%* 3.5% 2.4%*
Illinois 4.7% 3.5% 10.9% 5.2% 3.1%
Indiana 3.0% 2.6% 5.5% 3.6%* 2.5%*
Iowa 3.0% 2.5% 6.1%* 4.2%* 2.5%*
Kansas 2.8% 2.6% 4.5%* 3.4%* 2.3%*
Kentucky 4.0% 3.6% 6.5% 4.6%* 3.2%*
Louisiana 3.4% 2.3% 5.5% 4.0% 2.7%*
Maine 3.7% 3.5% 6.2%* 4.3%* 3.0%*
Maryland 4.3% 3.5% 5.9% 5.0%* 3.2%*
Massachusetts 3.4% 3.1% 3.9% 5.5% 2.7%
Michigan 4.3% 3.6% 7.5% 5.0% 3.5%*
Minnesota 2.3% 1.9% 4.0%* 2.7%* 1.9%*
Mississippi 3.9% 2.6% 6.2% 4.5%* 3.2%*
Missouri 2.7% 2.5% 4.0% 3.1%* 2.2%*
Montana 2.9% 2.8% 4.9%* 3.4%* 2.4%*
Nebraska 2.5% 1.8% 4.2%* 3.5%* 2.0%*
Nevada 4.9% 4.1% 9.7% 4.0% 4.5%
New Hampshire 2.6% 2.4% 4.3%* 3.0%* 2.1%*
New Jersey 3.4% 2.8% 6.2% 3.3% 2.6%
New Mexico 4.1% 2.9% 6.6%* 4.1% 3.3%*
New York 4.3% 3.0% 8.3% 5.8% 3.5%
North Carolina 3.9% 2.9% 7.2% 3.2% 3.1%*
North Dakota 2.3% 2.1% 3.6%* 2.7%* 1.9%*
Ohio 4.2% 3.6% 7.7% 4.9%* 3.4%*
Oklahoma 3.4% 2.7% 5.9%* 3.8% 2.8%*
Oregon 4.3% 3.8% 7.3%* 6.8% 3.3%*
Pennsylvania 4.0% 3.3% 7.1% 6.7% 3.2%*
Rhode Island 3.5% 2.7% 5.9%* 5.3% 2.8%*
South Carolina 3.3% 2.7% 5.1% 3.8%* 2.7%*
South Dakota 2.4% 1.6% 4.0%* 2.8%* 1.9%*
Tennessee 3.5% 3.0% 6.0% 4.0%* 2.8%*
Texas 4.0% 3.0% 6.0% 4.6% 2.3%
Utah 2.2% 1.9% 3.7%* 2.7% 1.8%*
Vermont 2.5% 2.3% 4.2%* 2.9%* 2.0%*
Virginia 2.8% 2.3% 4.6% 3.4% 2.2%*
Washington 4.0% 3.6% 6.7%* 5.4% 2.8%
Washington D.C. 4.7% 1.4% 9.8% 3.2% 3.8%*
West Virginia 4.1% 3.8% 7.2%* 4.7%* 3.3%*
Wisconsin 3.3% 2.8% 6.2%* 4.0%* 2.7%*
Wyoming 3.6% 3.1% 6.1%* 4.3% 2.9%*

Notes: AAPI stands for Asian American and Pacific Islander. The map reports unemployment rates only 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.

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Fourth-quarter 2022 trends among white workers 

Every state in the country except Nevada saw a white unemployment rate below 4%. White unemployment rates were below 2% in four states (Utah, Minnesota, Nebraska, and South Dakota) and D.C. The national unemployment rate remained lowest for white workers, who maintained a rate of 2.9% as in the previous two quarters. 

White unemployment rates 2022 Q4 

Highest: Nev. (4.1%) 

Lowest: D.C. (1.4%) 

National: 2.9% 

Fourth-quarter 2022 trends among Black workers 

Continuing a trend from last quarter, the majority of states had Black unemployment rates at or above 5%, and only four states recorded Black unemployment rates below 4% (Massachusetts, Florida, Utah, and North Dakota). Illinois stood out with a particularly high Black unemployment rate of 10.9%, though D.C. and Nevada were close to 10% (9.8% and 9.7%, respectively). The national Black unemployment rate remained at 6.1%, as in the previous two quarters. 

Black unemployment rates 2022 Q4 

Highest: Ill. (10.9%) 

Lowest: N.D.* (3.6%), Utah* (3.7%), Fla. (3.8%) 

National: 6.1% 

The national Black–white unemployment ratio for 2022 Q4 remained basically unchanged from the previous two quarters, at 2.1; nationwide, Black workers were again twice as likely to be unemployed as white workers. The Black–white unemployment ratio in the nation’s capital remained the highest in the country, at 6.8, while Massachusetts again had the lowest ratio, at 1.3. Once again, there were no states where Black workers were equally as likely as white workers or less likely than white workers to face unemployment.  

Black–white unemployment ratios 2022 Q4 

Highest: D.C. (6.8) 

Lowest: Mass. (1.3) 

National: 2.1 

Fourth-quarter 2022 trends among Hispanic workers 

Once again, Oregon and Pennsylvania had the highest Hispanic unemployment rates in the fourth quarter of 2022, at 6.8% and 6.7%, respectively. Over half of states (28) had Hispanic unemployment rates at or above 4%, while seven states had rates below 3%. Utah, Georgia, Minnesota, and North Dakota had the lowest state unemployment rates for Hispanic workers, at 2.7%, though the latter three states (Georgia, Minnesota, and North Dakota) had low Hispanic population counts compared with Utah. Nationwide, the unemployment rate for Hispanic workers was 4.2% in 2022 Q4—unchanged from the previous quarter.  

Hispanic unemployment rates 2022 Q4 

Highest: Ore. (6.8%), Pa. (6.7%) 

Lowest: Utah (2.7%), Ga.* (2.7%), Minn.* (2.7%), N.D.* (2.7%) 

National: 4.2% 

In the fourth quarter of 2022, the nationwide Hispanic–white unemployment ratio fell slightly, to 1.4-to-1, from 1.5-to-1 in 2022 Q3. D.C. retained the highest Hispanic–white unemployment ratio, at 2.2, followed closely by Pennsylvania and Rhode Island, both at 2-to-1. In Colorado and Nevada, white and Hispanic workers were equally likely to be employed: In both states, the Hispanic–white unemployment ratios were 1-to-1.  

Hispanic–white unemployment ratios 2022 Q4 

Highest: D.C. (2.2), Pa. (2.0), R.I. (2.0) 

Lowest: Nev. (1.0), Colo. (1.0) 

National: 1.4 

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

The AAPI unemployment rate was highest in Nevada, at 4.5%, in the fourth quarter of 2022; Nevada was the only state with an AAPI unemployment rate above 4%. A majority of states (29) had an AAPI unemployment rate below 3%. Four states with relatively low AAPI populations had AAPI unemployment rates below 2%—Utah’s 1.8% rate was the lowest among them. Texas had the lowest AAPI unemployment rate among states with estimates that were not heavily weighted by national data, at 2.3%. At the national level the AAPI unemployment rate for Q4 was 2.9%, in line with the white unemployment rate. 

AAPI unemployment rates 2022 Q4

Highest: Nev. (4.5%) 

Lowest: Utah* (1.8%), N.D.* (1.9%), Minn.* (1.9%), S.D.* (1.9%), Texas (2.3%) 

National: 2.9% 

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2022 Q4 (percentage points)

State All White Black Hispanic AAPI
United States -0.2 -0.2 -0.1 -0.3 -0.1
Alabama -0.7 -0.7 -1.0 -0.9* -0.5*
Alaska -0.8 -0.5 -1.0* -0.9* 0.0
Arizona -1.0 -0.5 -1.9* -0.9 -1.2*
Arkansas -0.4 -0.2 -1.1 -0.3* -0.2*
California -0.5 -0.2 1.1 -1.0 -0.7
Colorado 0.0 0.2 0.9* -1.1 0.1*
Connecticut 0.8 0.5 1.4* 1.5 0.8*
Delaware 0.2 0.5 -0.7 0.5* 0.3*
District of Columbia -0.7 -0.5 -1.3 -0.9 -0.4*
Florida -0.7 -0.5 -2.4 -0.4 -0.1*
Georgia -0.6 -0.2 -0.8 -1.3* -0.4*
Hawaii 1.1 1.2 2.0* 1.0* 1.0
Idaho 0.0 0.0 0.2* -0.3 0.1*
Illinois 0.5 0.2 2.3 0.6 0.2
Indiana -0.4 -0.5 0.6 -0.6* -0.2*
Iowa 0.4 0.4 1.2* 0.8* 0.4*
Kansas -0.3 -0.2 -0.8* -0.3* -0.1*
Kentucky -0.1 -0.4 0.2 -0.2* 0.0*
Louisiana -2.4 -1.4 -4.1 -3.4 -1.8*
Maine 0.9 1.0 1.7* 1.0* 0.8*
Maryland 0.1 0.1 0.1 0.2* 0.1*
Massachusetts 0.5 0.3 0.0 1.3 1.1
Michigan 0.5 0.3 0.6 0.4 0.5*
Minnesota -1.6 -1.7 -2.3* -2.0* -1.2*
Mississippi -1.8 -0.6 -3.7 -2.2* -1.3*
Missouri -0.7 -0.5 -1.6 -0.9* -0.5*
Montana -0.8 -0.6 -1.1* -1.0* -0.5*
Nebraska -0.9 -0.9 -1.4* -1.0* -0.7*
Nevada -0.4 -0.9 1.3 -0.6 -0.5
New Hampshire -0.1 -0.1 -0.0* -0.2* -0.0*
New Jersey 0.0 0.0 0.8 -0.6 -0.5
New Mexico -1.5 -1.3 -2.2* -2.1 -1.0*
New York 0.4 -0.4 2.1 0.8 1.8
North Carolina 0.1 -0.1 1.5 -2.2 0.2*
North Dakota 0.0 0.1 -0.0* -0.0* 0.1*
Ohio -0.4 -0.2 -0.5 -1.3* -0.2*
Oklahoma 0.2 0.1 0.4* 0.1 0.3*
Oregon 0.9 0.5 1.6* 2.9 0.3*
Pennsylvania -1.0 -0.9 -2.4 -0.5 -0.7*
Rhode Island -0.1 -0.4 -0.0* -0.2 -0.0*
South Carolina 0.4 0.2 1.2 0.4* 0.4*
South Dakota -0.2 0.1 -0.3* -0.3* -0.1*
Tennessee -0.1 0.1 -0.8 -0.1* 0.0*
Texas 0.0 0.2 -0.1 -0.3 -0.4
Utah -0.4 -0.6 -0.5* -0.1 -0.2*
Vermont -0.1 -0.2 -0.1* -0.2* -0.0*
Virginia 0.1 0.1 0.9 -0.1 -0.1*
Washington -0.4 -0.3 -0.0* -0.1 -0.3
West Virginia -1.1 -1.1 -1.3* -1.4* -0.7*
Wisconsin 0.3 0.4 0.4* 0.1* 0.3*
Wyoming -1.3 -1.1 -2.0* -0.6 -1.0*

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, 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, 2022 Q4

State Black–white ratio Hispanic–white ratio
United States 2.1 1.4
Alabama 1.8 1.4*
Alaska 2.7* 1.8*
Arizona 1.6* 1.3
Arkansas 1.6 1.2*
California 2.1 1.2
Colorado 1.8* 1.0
Connecticut 2.0* 1.6
Delaware 2.1 1.5*
District of Columbia 6.8 2.2
Florida 1.8 1.3
Georgia 2.3 1.2*
Hawaii 1.6* 1.1*
Idaho 1.8* 1.3
Illinois 3.1 1.5
Indiana 2.1 1.4*
Iowa 2.4* 1.6*
Kansas 1.8* 1.3*
Kentucky 1.8 1.3*
Louisiana 2.4 1.7
Maine 1.8* 1.2*
Maryland 1.7 1.4*
Massachusetts 1.3 1.8
Michigan 2.0 1.4
Minnesota 2.1* 1.4*
Mississippi 2.4 1.7*
Missouri 1.6 1.3*
Montana 1.8* 1.2*
Nebraska 2.3* 1.9*
Nevada 2.4 1.0
New Hampshire 1.8* 1.3*
New Jersey 2.2 1.2
New Mexico 2.3* 1.4
New York 2.8 1.9
North Carolina 2.4 1.1
North Dakota 1.7* 1.3*
Ohio 2.2 1.4*
Oklahoma 2.2* 1.4
Oregon 1.9* 1.8
Pennsylvania 2.1 2.0
Rhode Island 2.2* 2.0
South Carolina 1.9 1.4*
South Dakota 2.5* 1.7*
Tennessee 2.0 1.4*
Texas 2.0 1.5
Utah 1.9* 1.4
Vermont 1.8* 1.2*
Virginia 2.0 1.5
Washington 1.8* 1.5
West Virginia 1.9* 1.2*
Wisconsin 2.2* 1.4*
Wyoming 1.9* 1.4

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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Notes

1. See 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. 

2. For more on GDP growth, see Ben Casselman, “U.S. Economy Showed Momentum at Year’s End, Defying Recession Fears,” New York Times, January 26, 2023. For more on inflation expectations, see Greg Iacurci, “Here’s the Inflation Breakdown for December 2022—in One Chart,” CNBC, January 12, 2023. 

3. See Jeff Cox, “Fed Raises Interest Rates Half a Point to Highest level in 15 Years,” CNBC, December 15, 2022.

4. See Valerie Wilson and William Darity Jr., Understanding Black-White Disparities in Labor Market Outcomes Requires Models that Account for Persistent Discrimination and Unequal Bargaining Power, Economic Policy Institute, March 2022.  

5. See Paige Smith and J. Edward Moreno, “State Anti-Bias Agency, EEOC Budgets Shift as Workloads Persist,” Bloomberg Law, September 1, 2022.