State Unemployment by Race and Ethnicity

Unemployment rates ticked up slightly from the previous quarter across groups, though the overall labor market remained strong. Black-white and Hispanic-white unemployment ratios remained at 2.0-to-1 and 1.5-to-1, respectively, in keeping with historical trends. As the pace of labor market recovery slows, we continue to watch what effect Fed interest rate policy will have on unemployment rates across groups.

Key numbers • 2023 Q2

D.C. Highest Black-white unemployment ratio 6.3-to-1
R.I. Highest Hispanic-white unemployment ratio 2.5-to-1
U.S. Nationwide Black-white unemployment ratio 2.0-to-1
U.S. Nationwide Hispanic-white unemployment ratio 1.5-to-1

2023 Q2 • Updated August 2023

Black unemployment levels off after a historic drop; labor market remains strong overall

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 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

Second-quarter 2023 state unemployment rates, trends, and ratios

The national unemployment rate for the second quarter of 2023 remained essentially the same as the first quarter (rising slightly to 3.6%). This is further evidence that the overall labor market remains strong. Only Nevada (5.4%) and Washington, D.C. (5.1%) had an unemployment rate greater than 5%. Nebraska, New Hampshire, and South Dakota had overall unemployment rates below 2%, with each at 1.9%.

Overall unemployment rates 2023 Q2

Highest: Nev. (5.4%), D.C. (5.1%)

Lowest: Neb. (1.9%), N.H. (1.9%), S.D. (1.9%)

National: 3.6%

Month-to-month variation throughout the quarter saw unemployment rates hover around the same values with no strong rising or falling trends. This represents a change from earlier in the year. The historically low Black unemployment rate has stopped its descent, as have rates for other groups. Though it is too early to say whether the long recovery from the COVID recession has finally ended, the pace of that recovery has slowed.

The slowing labor market recovery is important context for policymakers to consider when determining monetary policy moving forward. With core inflation down relative to the previous quarter, the justification for additional interest rate hikes continues to weaken. Given that racial disparities in unemployment rates still exist at the national level and across states, an interest rate–induced recession would disproportionately harm Black and brown workers.

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2023 Q2

State All White Black Hispanic AAPI
United States 3.6% 2.9% 5.8% 4.4% 2.9%
Alabama 2.2% 1.9% 2.6% 2.7%* 1.8%*
Alaska 3.7% 2.0% 6.0%* 4.2%* 3.4%
Arizona 3.4% 2.6% 5.5%* 4.0% 2.7%*
Arkansas 2.7% 2.5% 4.1% 3.1%* 2.2%*
California 4.5% 3.9% 7.4% 4.8% 4.0%
Colorado 2.8% 2.5% 4.7%* 3.0% 2.3%*
Connecticut 3.7% 2.8% 6.3%* 5.7% 3.0%*
Delaware 4.2% 3.7% 5.7% 5.1%* 3.4%*
Washington D.C. 5.1% 1.7% 10.8% 3.7% 4.1%*
Florida 2.6% 2.3% 3.6% 2.7% 1.7%*
Georgia 3.2% 2.2% 5.7% 3.2%* 2.6%*
Hawaii 3.1% 2.9% 5.1%* 4.2%* 2.8%
Idaho 2.6% 2.2% 4.3%* 3.4% 2.1%*
Illinois 4.1% 3.0% 9.5% 4.9% 2.6%
Indiana 3.1% 2.4% 6.0% 3.9%* 2.5%*
Iowa 2.7% 2.4% 4.6%* 3.8%* 2.2%*
Kansas 2.9% 2.7% 4.6%* 3.5%* 2.3%*
Kentucky 3.8% 3.2% 7.5% 4.6%* 3.1%*
Louisiana 3.6% 2.6% 5.1% 4.8% 2.9%*
Maine 2.4% 2.3% 3.9%* 3.0%* 1.9%*
Maryland 2.3% 1.6% 3.6% 2.8%* 1.8%*
Massachusetts 2.8% 2.5% 4.3% 4.3% 2.0%
Michigan 3.7% 3.2% 5.7% 4.3% 3.0%*
Minnesota 2.9% 2.5% 4.4%* 3.5%* 2.3%*
Mississippi 3.2% 2.2% 5.1% 4.0%* 2.6%*
Missouri 2.5% 2.1% 4.1% 3.1%* 2.1%*
Montana 2.3% 2.1% 3.8%* 2.9%* 1.9%*
Nebraska 1.9% 1.5% 3.2%* 2.6%* 1.6%*
Nevada 5.4% 4.6% 11.3% 4.9% 3.8%
New Hampshire 1.9% 1.8% 3.2%* 2.4%* 1.6%*
New Jersey 3.6% 3.0% 6.9% 3.7% 2.2%
New Mexico 3.5% 2.4% 5.3%* 3.8% 2.8%*
New York 3.9% 2.7% 7.3% 5.6% 3.2%
North Carolina 3.4% 2.6% 5.9% 2.8% 2.7%*
North Dakota 2.1% 1.7% 3.5%* 2.5%* 1.7%*
Ohio 3.6% 3.1% 6.3% 4.1%* 2.9%*
Oklahoma 2.8% 2.3% 5.0%* 3.3% 2.3%*
Oregon 3.7% 3.5% 6.1%* 5.4% 2.8%*
Pennsylvania 4.0% 3.6% 4.7% 7.0% 3.2%*
Rhode Island 3.0% 2.2% 4.9%* 5.5% 2.4%*
South Carolina 3.1% 2.4% 4.8% 3.8%* 2.5%*
South Dakota 1.9% 1.3% 3.1%* 2.3%* 1.5%*
Tennessee 3.3% 2.8% 4.9% 4.4%* 2.7%*
Texas 4.1% 2.8% 6.4% 5.0% 2.2%
Utah 2.3% 2.0% 3.8%* 3.1% 1.9%*
Vermont 2.1% 2.1% 3.5%* 2.6%* 1.7%*
Virginia 2.9% 2.4% 5.1% 3.3% 2.2%*
Washington 4.1% 3.9% 6.5%* 4.9% 2.9%
West Virginia 3.3% 3.1% 5.5%* 4.1%* 2.7%*
Wisconsin 2.4% 2.1% 4.6%* 3.0%* 2.0%*
Wyoming 3.3% 2.7% 5.4%* 4.4% 2.7%*

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 2023 trends among white workers

The white unemployment rate was less than 4% in every state except Nevada (4.6%) in the second quarter of 2023. In six states and D.C., the white unemployment rate was below 2%, with South Dakota (1.3%) and Nebraska (1.5%) having the lowest rates. The national white unemployment rate for 2023 Q2 ticked slightly upward to 2.9% from 2.8% the previous quarter.

White unemployment rates 2023 Q2

Highest: Nev. (4.6%)

Lowest: S.D. (1.3%), Neb. (1.5%)

National: 2.9%

Second-quarter 2023 trends among Black workers

The historic Black unemployment rates seen in the first quarter of 2023 softened slightly in the second quarter, though gains and losses were spread out across states. Nevada (11.3%), D.C. (10.8%), and Illinois (9.5%) once again had the highest Black unemployment rates in the country, with D.C. once again rising above 10%. Alabama (2.6%) was the only state with a Black unemployment rate below 3%; notably, this is the lowest Black state unemployment rate on record. The national Black unemployment rate rose slightly to 5.8%, from 5.7% in the previous quarter.

Black unemployment rates 2023 Q2

Highest: Nev. (11.3%), D.C. (10.8%)

Lowest: Ala. (2.6%)

National: 5.8%

Slight increases in the unemployment rates of Black and white workers alike meant that the national Black-white unemployment ratio remained at 2-to-1 in the second quarter of 2023, keeping with the historic trend of Black workers being about twice as likely to be unemployed as white workers. D.C. maintained its position of having the highest Black-white ratio at 6.3-to-1, while Pennsylvania had the lowest ratio at 1.3-to-1. There were no states in which Black and white workers were equally likely to be unemployed.

Black-white unemployment ratios 2023 Q2

Highest: D.C. (6.3-to-1)

Lowest: Penn. (1.3-to-1)

National: 2.0-to-1

Second-quarter 2023 trends among Hispanic workers

Pennsylvania (7.0%) had the highest Hispanic unemployment rate once again, though that rate fell by nearly a percentage point from the first quarter of 2023. Twenty-three states had Hispanic unemployment rates at or above 4%, while 10 states had Hispanic unemployment rates below 3%. South Dakota (2.3%) and New Hampshire (2.4%) had the lowest rates, though those states had low Hispanic population counts. Among those states with large Hispanic populations, Florida (2.7%) had the lowest rate once again, followed closely by North Carolina (2.8%).

Hispanic unemployment rates 2023 Q2

Highest: Penn. (7.0%)

Lowest: S.D.* (2.3%), N.H.* (2.4%), Fla. (2.7%), N.C. (2.8%)

National: 4.4%

In the second quarter of 2023 the nationwide Hispanic-white unemployment ratio remained at 1.5-to-1, meaning Hispanic workers were 50% more likely than white workers to be unemployed. The Hispanic-white unemployment ratio was highest in Rhode Island (2.5-to-1) and lowest in North Carolina and Nevada (both 1.1-to-1), where Hispanic workers and white workers had nearly equal rates of unemployment.

Hispanic-white unemployment ratios 2023 Q2

Highest: R.I. (2.5-to-1)

Lowest: N.C. (1.1-to-1), Nev. (1.1-to-1)

National: 1.5-to-1

Second-quarter 2023 trends among Asian American and Pacific Islander (AAPI) workers

The AAPI unemployment rate was highest in D.C. (4.1%) and California (4.0%) in the second quarter of 2023; all other states saw AAPI unemployment rates under 4%. Most states had AAPI unemployment rates under 3%, with 11 states under 2%. South Dakota had the lowest AAPI unemployment rate surveyed at 1.5%, though South Dakota’s AAPI population is low. Among those states with substantial AAPI populations, Massachusetts had the lowest AAPI unemployment rate at 2.0%. Nationwide the AAPI unemployment rate once again matched the white unemployment rate at 2.9%.

AAPI unemployment rates 2023 Q2

Highest: D.C.* (4.1%), Calif. (4.0%)

Lowest: S.D. (1.5%), Mass. (2.0%)

National: 2.9%

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2023 Q2 (percentage points)

State All White Black Hispanic AAPI
United States -0.2 -0.3 -0.4 -0.2 -0.1
Alabama -1.1 -0.9 -2.1 -1.2* -0.8*
Alaska -1.8 -1.4 -2.9* -1.7* -0.5
Arizona -1.4 -1.3 -2.0* -1.2 -1.4*
Arkansas -1.3 -1.1 -2.3 -1.2* -1.0*
California -0.2 0.1 0.8 -0.6 -0.1
Colorado -0.4 -0.3 0.0* -1.0 -0.2*
Connecticut -0.1 -0.6 0.0* 1.1 -0.0*
Delaware 0.1 0.7 -2.0 0.6* 0.2*
District of Columbia -0.6 -0.3 -0.7 -0.6 -0.3*
Florida -0.7 -0.3 -2.6 -0.5 -0.6*
Georgia -0.4 -0.1 -0.2 -0.8* -0.3*
Hawaii 0.9 0.5 1.5* 1.3* 0.8
Idaho -0.1 -0.3 -0.2* -0.1 -0.0*
Illinois -0.1 -0.3 0.8 0.2 -0.4
Indiana -0.3 -0.7 1.2 -0.2* -0.2*
Iowa 0.1 0.2 -0.3* 0.5* 0.1*
Kansas -0.4 -0.3 -1.1* -0.4* -0.2*
Kentucky -0.3 -0.8 1.2 -0.3* -0.2*
Louisiana -1.8 -0.8 -3.9 -2.2 -1.3*
Maine -0.8 -0.6 -1.3* -0.9* -0.6*
Maryland -1.2 -1.3 -1.3 -1.2* -0.8*
Massachusetts 0.0 -0.1 0.6 0.4 0.4
Michigan -0.1 -0.1 -1.2 -0.2 0.0*
Minnesota -0.6 -0.7 -1.2* -0.7* -0.4*
Mississippi -2.5 -1.1 -4.9 -2.9* -1.9*
Missouri -0.9 -0.9 -1.5 -0.9* -0.6*
Montana -1.2 -1.2 -1.9* -1.3* -0.9*
Nebraska -1.6 -1.3 -2.6* -2.0* -1.2*
Nevada 0.1 -0.4 2.9 0.2 -1.2
New Hampshire -0.7 -0.6 -1.1* -0.7* -0.5*
New Jersey -0.5 -0.2 0.5 -1.0 -1.6
New Mexico -1.9 -1.6 -3.3* -2.2 -1.4*
New York -0.2 -0.9 0.8 0.4 1.3
North Carolina -0.5 -0.4 0.1 -2.8 -0.3*
North Dakota -0.2 -0.2 -0.2* -0.1* -0.1*
Ohio -1.0 -0.5 -1.8 -2.0* -0.7*
Oklahoma -0.4 -0.3 -0.5* -0.4 -0.2*
Oregon 0.1 0.0 0.2* 1.4 -0.3*
Pennsylvania -0.7 -0.4 -4.2 0.2 -0.5*
Rhode Island -0.7 -0.9 -1.1* 0.0 -0.4*
South Carolina 0.2 -0.1 0.9 0.3* 0.2*
South Dakota -0.6 -0.1 -1.0* -0.7* -0.4*
Tennessee -0.2 0.0 -1.7 0.4* -0.1*
Texas 0.0 0.0 0.2 0.1 -0.5
Utah -0.2 -0.4 -0.3* 0.3 -0.1*
Vermont -0.1 -0.1 -0.2* -0.1* -0.1*
Virginia -0.1 -0.1 1.1 -0.5 -0.2*
Washington -0.2 0.1 -0.1* -0.4 -0.2
West Virginia -2.0 -1.8 -3.2* -2.2* -1.5*
Wisconsin -0.6 -0.3 -1.2* -0.8* -0.4*
Wyoming -1.4 -1.3 -2.2* -0.2 -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, 2023 Q2

State Black-white ratio Hispanic-white ratio
United States 2.0 1.5
Alabama 1.4 1.4*
Alaska 3.0* 2.1*
Arizona 2.1* 1.5
Arkansas 1.6 1.2*
California 1.9 1.2
Colorado 1.9* 1.2
Connecticut 2.2* 2.0
Delaware 1.6 1.4*
District of Columbia 6.3 2.2
Florida 1.6 1.2
Georgia 2.5 1.4*
Hawaii 1.8* 1.5*
Idaho 1.9* 1.5
Illinois 3.1 1.6
Indiana 2.5 1.7*
Iowa 2.0* 1.6*
Kansas 1.7* 1.3*
Kentucky 2.4 1.5*
Louisiana 1.9 1.8
Maine 1.7* 1.3*
Maryland 2.2 1.7*
Massachusetts 1.7 1.7
Michigan 1.7 1.3
Minnesota 1.7* 1.4*
Mississippi 2.3 1.8*
Missouri 1.9 1.5*
Montana 1.9* 1.4*
Nebraska 2.2* 1.8*
Nevada 2.5 1.1
New Hampshire 1.7* 1.3*
New Jersey 2.3 1.2
New Mexico 2.2* 1.6
New York 2.7 2.1
North Carolina 2.2 1.1
North Dakota 2.0* 1.5*
Ohio 2.0 1.3*
Oklahoma 2.2* 1.5
Oregon 1.8* 1.6
Pennsylvania 1.3 1.9
Rhode Island 2.2* 2.5
South Carolina 2.0 1.6*
South Dakota 2.4* 1.8*
Tennessee 1.8 1.6*
Texas 2.3 1.8
Utah 1.9* 1.5
Vermont 1.6* 1.2*
Virginia 2.2 1.4
Washington 1.6* 1.3
West Virginia 1.8* 1.3*
Wisconsin 2.2* 1.5*
Wyoming 2.0* 1.6

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.

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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.

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.

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