State Unemployment by Race and Ethnicity
The labor market remained strong overall in the first quarter of 2023, with relatively low unemployment rates for all groups and the lowest Black unemployment rate on record in March 2023 at 5%. However, we cannot conflate “better than normal” with “acceptable.” Steep inequities persist in the labor market: Black workers continue to experience unemployment at twice the rate of white workers, and the Hispanic-white unemployment ratio is 1.5-to-1.
Key numbers • 2023 Q1
2023 Q1 • Updated May 2023
The first quarter of 2023 brought historic lows in the Black unemployment rate and a strong labor market overall, but fell short of employment equality
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 first quarter of 2023.
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
First-quarter 2023 state unemployment rates, trends, and ratios
The national unemployment rate for the first quarter of 2023 fell slightly to 3.5%, the first overall drop in three quarters of reporting this series. Suffice it to say we are experiencing a very strong labor market overall. Nevada (5.5%) was the only state to have an unemployment rate above 5%. North Dakota and South Dakota had the lowest unemployment rates at 2.1% and 2.0%, respectively.
Overall unemployment rates 2023 Q1
Highest: Nev. (5.5%)
Lowest: S.D. (2.0%), N.D. (2.1%)
National: 3.5%
This overall labor market strength translates into much improved labor market conditions across racial lines as well, notably with a historically low unemployment rate for Black workers. This is consistent with research that shows that, with a sufficiently long recovery, even group rates that historically fall slowly will begin to approach tolerable levels.
With inflation also slowing, reaching 5% in March, we are entering a period of low unemployment and a manageable price level. Low unemployment rates alone are not evidence of solved structural issues, however, and the fact that the unemployment ratios between groups remain largely unchanged suggests that there is more work to be done to get us to employment equality.
State unemployment rates, by race/ethnicity and overall, 2023 Q1
| State | All | White | Black | Hispanic | AAPI |
|---|---|---|---|---|---|
| United States | 3.5% | 2.8% | 5.7% | 4.3% | 2.8% |
| Alabama | 2.5% | 2.1% | 3.3% | 3.0% | 2.0% |
| Alaska | 3.8% | 2.3% | 6.2% | 4.3% | 3.4% |
| Arizona | 3.7% | 2.9% | 5.6% | 4.5% | 2.8% |
| Arkansas | 3.2% | 3.0% | 4.7% | 3.7% | 2.5% |
| California | 4.3% | 3.8% | 7.7% | 4.6% | 3.6% |
| Colorado | 2.8% | 2.6% | 4.7% | 2.9% | 2.3% |
| Connecticut | 4.0% | 3.1% | 6.7% | 5.8% | 3.2% |
| Delaware | 4.5% | 3.9% | 6.6% | 5.3% | 3.6% |
| Florida | 2.6% | 2.2% | 3.4% | 2.8% | 2.0% |
| Georgia | 3.1% | 2.2% | 5.4% | 3.2% | 2.5% |
| Hawaii | 3.6% | 3.8% | 5.9% | 4.6% | 3.2% |
| Idaho | 2.6% | 2.3% | 4.3% | 3.2% | 2.1% |
| Illinois | 4.5% | 3.3% | 10.5% | 5.1% | 2.9% |
| Indiana | 3.1% | 2.5% | 6.0% | 3.9% | 2.5% |
| Iowa | 2.9% | 2.5% | 5.2% | 4.3% | 2.3% |
| Kansas | 2.9% | 2.7% | 4.6% | 3.6% | 2.3% |
| Kentucky | 3.9% | 3.4% | 7.0% | 4.8% | 3.1% |
| Louisiana | 3.6% | 2.7% | 5.2% | 4.5% | 2.8% |
| Maine | 2.8% | 2.6% | 4.5% | 3.4% | 2.2% |
| Maryland | 2.9% | 2.2% | 4.1% | 3.5% | 2.2% |
| Massachusetts | 3.6% | 3.2% | 4.3% | 5.5% | 3.0% |
| Michigan | 4.2% | 3.8% | 6.4% | 5.0% | 3.4% |
| Minnesota | 2.9% | 2.6% | 4.5% | 3.6% | 2.3% |
| Mississippi | 3.7% | 2.6% | 5.7% | 4.5% | 2.9% |
| Missouri | 2.6% | 2.2% | 4.6% | 3.2% | 2.1% |
| Montana | 2.4% | 2.2% | 3.9% | 2.9% | 1.9% |
| Nebraska | 2.3% | 1.7% | 3.8% | 3.2% | 1.8% |
| Nevada | 5.5% | 4.5% | 11.0% | 4.9% | 4.4% |
| New Hampshire | 2.6% | 2.5% | 4.3% | 3.2% | 2.1% |
| New Jersey | 3.5% | 2.8% | 6.8% | 3.7% | 2.0% |
| New Mexico | 3.5% | 2.7% | 5.5% | 3.6% | 2.8% |
| New York | 4.2% | 2.8% | 8.0% | 6.0% | 3.5% |
| North Carolina | 3.6% | 2.8% | 6.3% | 3.6% | 2.9% |
| North Dakota | 2.1% | 1.9% | 3.5% | 2.6% | 1.7% |
| Ohio | 3.9% | 3.4% | 6.6% | 4.7% | 3.1% |
| Oklahoma | 3.0% | 2.4% | 5.2% | 3.8% | 2.4% |
| Oregon | 4.6% | 4.3% | 7.6% | 6.5% | 3.6% |
| Pennsylvania | 4.3% | 3.8% | 5.8% | 7.9% | 3.4% |
| Rhode Island | 3.1% | 2.1% | 5.1% | 6.3% | 2.5% |
| South Carolina | 3.2% | 2.6% | 4.9% | 3.9% | 2.5% |
| South Dakota | 2.0% | 1.3% | 3.3% | 2.5% | 1.6% |
| Tennessee | 3.5% | 2.9% | 5.6% | 4.4% | 2.8% |
| Texas | 4.0% | 2.8% | 6.2% | 4.9% | 2.0% |
| Utah | 2.4% | 2.0% | 3.9% | 3.1% | 1.9% |
| Vermont | 2.8% | 2.8% | 4.6% | 3.4% | 2.2% |
| Virginia | 3.2% | 2.6% | 5.3% | 3.8% | 2.4% |
| Washington | 4.6% | 4.3% | 7.6% | 5.8% | 3.0% |
| Washington D.C. | 4.7% | 1.6% | 9.6% | 3.6% | 3.7% |
| West Virginia | 3.7% | 3.5% | 6.3% | 4.5% | 2.9% |
| Wisconsin | 2.7% | 2.4% | 4.7% | 3.3% | 2.1% |
| Wyoming | 3.8% | 3.1% | 6.2% | 4.8% | 3.0% |
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. 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.
First-quarter 2023 trends among white workers
Every state in the country except Nevada, Washington, and Oregon saw a white unemployment rate below 4%. White unemployment rates were at or below 2% percent in four states (Nebraska, North Dakota, South Dakota, and Utah) and D.C. The national unemployment rate remained lowest for white workers (tied with the rate for AAPI workers). Their rate fell to 2.8%, very slightly below the previous two quarters’ rates.
White unemployment rates 2023 Q1
Highest: Nev. (4.5%)
Lowest: S.D. (1.3%)
National: 2.8%
First-quarter 2023 trends among Black workers
While unemployment rates fell overall for Black workers compared with last quarter, and reached overall historic lows, the majority of states (31, including D.C.) still had Black unemployment rates at or above 5%. Seven states recorded Black unemployment rates below 4%. Nevada, Illinois, and D.C. stood out once again with high unemployment rates of 11.0%, 10.5%, and 9.6%, respectively. The national Black unemployment rate for 2023 Q1 fell to 5.7%, an improvement compared with the previous three quarters.
Black unemployment rates 2023 Q1
Highest: Nev. (11.0%), Ill. (10.5%), D.C. (9.6%)
Lowest: S.D.* (3.3%), Ala. (3.3%), Fla. (3.4%)
National: 5.7%
The national Black-white unemployment ratio for 2023 Q1 fell slightly to 2.0; 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 5.9, while Massachusetts again had the lowest ratio, at 1.3. Once again, there were no states in which Black workers were equally as likely as or less likely than white workers to face unemployment.
Black-white unemployment ratios 2023 Q1
Highest: D.C. (5.9)
Lowest: Mass. (1.3)
National: 2.0
This is a stark reminder that low unemployment rates do not go hand in hand with employment parity. If unemployment ratios don’t begin to change significantly, a recession could still cause unemployment gaps to increase drastically. We must push for parity in unemployment rates across groups.
First-quarter 2023 trends among Hispanic workers
Once again, Pennsylvania and Oregon had the highest Hispanic unemployment rates in the first quarter, at 7.9% and 6.5%, respectively. Less than half the states (24, including D.C.) had Hispanic unemployment rates at or above 4%, while six states had rates at or below 3%. North Dakota and South Dakota had the lowest Hispanic unemployment rates, at 2.6% and 2.5%, respectively, though those states had low Hispanic population counts. Among those states with significant Hispanic populations, Florida had the lowest Hispanic unemployment rate, at 2.8%. Nationwide, the unemployment rate for Hispanic workers was 4.3% in 2023 Q1—largely unchanged from the previous quarter.
Hispanic unemployment rates 2023 Q1
Highest: Penn. (7.9%)
Lowest: S.D.* (2.5%), N.D.* (2.6%), Fla. (2.8%)
National: 4.3%
In the first quarter of 2023, the nationwide Hispanic-white unemployment ratio rose slightly, from 1.4-to-1 in 2022 Q4 to 1.5-to-1 in 2023 Q1. The Hispanic-white unemployment ratio was highest in Rhode Island, where Hispanic workers were three times as likely to be unemployed as white workers. There were no states in which Hispanic and white workers were equally likely to be unemployed, though Colorado and Nevada were very close, with Hispanic-white unemployment ratios of 1.1-to-1.
Hispanic-white unemployment ratios 2023 Q1
Highest: R.I. (3.0)
Lowest: Colo. (1.1), Nev. (1.1)
National: 1.5
First-quarter 2023 trends among Asian American and Pacific Islander (AAPI) workers
The AAPI unemployment rate was highest in Nevada, at 4.4%, in the first quarter of 2023; Nevada was once again the only state with an AAPI unemployment rate above 4%. Most states (35) had an AAPI unemployment rate below 3%. Five states had AAPI unemployment rates below 2%, though these states had relatively low AAPI populations—North Dakota and South Dakota were lowest among these states, at 1.7% and 1.6%, respectively. Texas and New Jersey had the lowest AAPI unemployment rates among states with estimates that were not heavily weighted by national data, both at 2.0%. The nationwide AAPI unemployment rate was equal to the white unemployment rate, at 2.8%.
AAPI unemployment rates 2023 Q1
Highest: Nev. (4.4%)
Lowest: S.D. (1.6%)
National: 2.8%
Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2023 Q1 (percentage points)
| State | All | White | Black | Hispanic | AAPI |
|---|---|---|---|---|---|
| United States | -0.3 | -0.3 | -0.5 | -0.2 | -0.2 |
| Alabama | -0.8 | -0.8 | -1.4 | -0.9* | -0.6* |
| Alaska | -1.7 | -1.1 | -2.7* | -1.7* | -0.4 |
| Arizona | -1.2 | -1.0 | -1.9* | -0.7 | -1.3* |
| Arkansas | -0.8 | -0.6 | -1.7 | -0.6* | -0.6* |
| California | -0.4 | -0.1 | 1.1 | -0.8 | -0.6 |
| Colorado | -0.3 | -0.2 | -0.0* | -1.1 | -0.2* |
| Connecticut | 0.1 | -0.4 | 0.4* | 1.1 | 0.1* |
| Delaware | 0.4 | 1.0 | -1.1 | 0.8* | 0.4* |
| District of Columbia | -1.0 | -0.4 | -2.0 | -0.7 | -0.7* |
| Florida | -0.7 | -0.4 | -2.9 | -0.4 | -0.4* |
| Georgia | -0.5 | -0.2 | -0.5 | -0.8* | -0.4* |
| Hawaii | 1.4 | 1.4 | 2.3* | 1.7* | 1.2 |
| Idaho | -0.1 | -0.2 | -0.1* | -0.3 | -0.1* |
| Illinois | 0.3 | -0.0 | 1.8 | 0.5 | 0.0 |
| Indiana | -0.3 | -0.6 | 1.1 | -0.2* | -0.2* |
| Iowa | 0.3 | 0.4 | 0.3* | 0.9* | 0.3* |
| Kansas | -0.4 | -0.3 | -1.0* | -0.3* | -0.3* |
| Kentucky | -0.2 | -0.6 | 0.7 | -0.2* | -0.1* |
| Louisiana | -1.8 | -0.8 | -3.9 | -2.5 | -1.4* |
| Maine | -0.4 | -0.3 | -0.7* | -0.4* | -0.3* |
| Maryland | -0.6 | -0.7 | -0.7 | -0.5* | -0.4* |
| Massachusetts | 0.8 | 0.6 | 0.6 | 1.5 | 1.5 |
| Michigan | 0.5 | 0.4 | -0.4 | 0.5 | 0.4* |
| Minnesota | -0.6 | -0.7 | -1.1* | -0.6* | -0.4* |
| Mississippi | -2.1 | -0.7 | -4.3 | -2.3* | -1.6* |
| Missouri | -0.8 | -0.8 | -0.9 | -0.9* | -0.6* |
| Montana | -1.1 | -1.0 | -1.8* | -1.2* | -0.8* |
| Nebraska | -1.2 | -1.1 | -1.9* | -1.4* | -0.9* |
| Nevada | 0.2 | -0.5 | 2.6 | 0.3 | -0.5 |
| New Hampshire | 0.0 | 0.0 | 0.1* | 0.1* | 0.1* |
| New Jersey | -0.6 | -0.4 | 0.4 | -1.0 | -1.7 |
| New Mexico | -1.9 | -1.3 | -3.1* | -2.5 | -1.4* |
| New York | 0.1 | -0.8 | 1.5 | 0.7 | 1.6 |
| North Carolina | -0.2 | -0.3 | 0.5 | -2.0 | -0.1* |
| North Dakota | -0.1 | -0.1 | -0.1* | -0.1* | -0.1* |
| Ohio | -0.7 | -0.2 | -1.5 | -1.3* | -0.5* |
| Oklahoma | -0.1 | -0.2 | -0.3* | -0.0 | -0.1* |
| Oregon | 1.0 | 0.8 | 1.7* | 2.5 | 0.4* |
| Pennsylvania | -0.4 | -0.2 | -3.1 | 1.1 | -0.3* |
| Rhode Island | -0.5 | -1.0 | -0.9* | 0.8 | -0.4* |
| South Carolina | 0.3 | 0.1 | 1.0 | 0.4* | 0.2* |
| South Dakota | -0.5 | -0.1 | -0.8* | -0.5* | -0.3* |
| Tennessee | -0.0 | 0.1 | -1.0 | 0.4* | 0.0* |
| Texas | -0.1 | -0.0 | 0.0 | -0.0 | -0.7 |
| Utah | -0.1 | -0.4 | -0.1* | 0.4 | -0.1* |
| Vermont | 0.5 | 0.5 | 0.9* | 0.7* | 0.4* |
| Virginia | 0.2 | 0.2 | 1.3 | 0.0 | -0.0* |
| Washington | 0.3 | 0.4 | 1.1* | 0.5 | -0.0 |
| West Virginia | -1.6 | -1.4 | -2.4* | -1.8* | -1.2* |
| Wisconsin | -0.3 | 0.0 | -1.1* | -0.6* | -0.2* |
| Wyoming | -0.9 | -0.9 | -1.4* | 0.1 | -0.6* |
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.
Black–white and Hispanic–white state unemployment rate ratios, 2023 Q1
| State | Black–white ratio | Hispanic–white ratio |
|---|---|---|
| United States | 2.0 | 1.5 |
| Alabama | 1.6 | 1.5* |
| Alaska | 2.6* | 1.8* |
| Arizona | 1.9* | 1.6 |
| Arkansas | 1.6 | 1.2* |
| California | 2.0 | 1.2 |
| Colorado | 1.8* | 1.1 |
| Connecticut | 2.2* | 1.9 |
| Delaware | 1.7 | 1.4* |
| District of Columbia | 5.9 | 2.2 |
| Florida | 1.5 | 1.2 |
| Georgia | 2.5 | 1.4* |
| Hawaii | 1.6* | 1.2* |
| Idaho | 1.8* | 1.4 |
| Illinois | 3.2 | 1.5 |
| Indiana | 2.4 | 1.6* |
| Iowa | 2.1* | 1.7* |
| Kansas | 1.7* | 1.4* |
| Kentucky | 2.1 | 1.4* |
| Louisiana | 1.9 | 1.7 |
| Maine | 1.7* | 1.3* |
| Maryland | 1.9 | 1.6* |
| Massachusetts | 1.3 | 1.7 |
| Michigan | 1.7 | 1.3 |
| Minnesota | 1.8* | 1.4* |
| Mississippi | 2.2 | 1.8* |
| Missouri | 2.1 | 1.5* |
| Montana | 1.8* | 1.4* |
| Nebraska | 2.2* | 1.9* |
| Nevada | 2.4 | 1.1 |
| New Hampshire | 1.8* | 1.3* |
| New Jersey | 2.4 | 1.3 |
| New Mexico | 2.0* | 1.3 |
| New York | 2.8 | 2.1 |
| North Carolina | 2.2 | 1.3 |
| North Dakota | 1.9* | 1.4* |
| Ohio | 1.9 | 1.4* |
| Oklahoma | 2.2* | 1.6 |
| Oregon | 1.8* | 1.5 |
| Pennsylvania | 1.5 | 2.1 |
| Rhode Island | 2.4* | 3.0 |
| South Carolina | 1.9 | 1.5* |
| South Dakota | 2.5* | 1.9* |
| Tennessee | 1.9 | 1.5* |
| Texas | 2.2 | 1.8 |
| Utah | 1.9* | 1.5 |
| Vermont | 1.7* | 1.3* |
| Virginia | 2.0 | 1.4 |
| Washington | 1.8* | 1.4 |
| West Virginia | 1.8* | 1.3* |
| Wisconsin | 2.0* | 1.4* |
| Wyoming | 2.0* | 1.5 |
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.
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.
Note
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.