State Unemployment by Race and Ethnicity

Third quarter unemployment estimates reflect a stable and strong labor market with minimal changes in unemployment rates overall and across demographic groups. Some positive signs indicating no immediate threats to the labor market are better-than-expected GDP growth, slowing inflation, and the Fed’s pause on interest rate increases. Despite these favorable signs, stubborn racial and ethnic disparities in unemployment persist across states.  

Key numbers • 2023 Q3

D.C. Highest Black-white unemployment ratio 5.3-to-1
R.I. Highest Hispanic-white unemployment ratio 2.5-to-1
U.S. National Black-white unemployment ratio 2.0-to-1
U.S. National Hispanic-white unemployment ratio 1.6-to-1

2023 Q3 • Updated November 2023

Unemployment rates remained low through the third quarter of 2023 though labor market disparities persist 

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 for the third 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

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

The third quarter of 2023 saw the national unemployment rate rise very slightly from 3.6% to 3.7%, continuing the trend of a stable and strong labor market that we have seen throughout the year. Nevada maintained its position as the state with the highest overall unemployment rate at 5.4%. Only Nevada and Washington, D.C., (5%) had an unemployment rate at or above 5%. Maryland had the lowest unemployment rate this quarter at 1.7%, though Nebraska (2%), the Dakotas (1.9%), Vermont (1.8%), and New Hampshire (1.8%) had rates at or below 2%.  

Overall unemployment rates 2023 Q3

Highest: Nev. (5.4%), D.C. (5.0%)

Lowest:  Md. (1.7%)

National: 3.7%

Stability is the key word characterizing the third quarter’s labor market performance, with minimal changes in unemployment rates overall and across groups. Though the steady decline in unemployment rates ended in the second quarter, the third did not see rates rise precipitously. On top of stronger-than-expected GDP growth and slowing inflation, the economy continues to be in a stable position, with jobs being added monthly and workers at the margins being brought in to participate in the labor market. 

That said, the possibility that the Fed could raise interest rates further in an attempt to rein in inflation has been the only clear threat to an otherwise strong labor market. However, during their last two meetings in September and October/November 2023, the Fed opted to hold rates steady as nominal wage growth and inflation slowed. Real (inflation-adjusted) wages rose during the third quarter since inflation fell much faster than nominal wage growth. In other words, wages grew faster than prices increased.  

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2023 Q3

State All White Black Hispanic AAPI
United States 3.7% 3.0% 5.9% 4.6% 3.0%
Alabama 2.1% 1.8% 2.7% 2.7%* 1.7%*
Alaska 3.9% 2.0% 6.3%* 4.6%* 3.6%
Arizona 3.8% 3.1% 6.1%* 4.2% 2.9%*
Arkansas 2.7% 2.5% 4.10% 3.4%* 2.2%*
California 4.6% 4.1% 7.2% 4.9% 4.0%
Colorado 3.1% 2.5% 4.8%* 4.4% 2.5%*
Connecticut 3.5% 2.7% 5.9%* 4.9% 2.8%*
Delaware 4.1% 3.5% 5.6% 5.0%* 3.3%*
Florida 2.7% 2.3% 4.1% 2.9% 1.7%*
Georgia 3.3% 2.2% 5.8% 3.5%* 2.7%*
Hawaii 2.8% 2.0% 4.5%* 3.9%* 2.6%
Idaho 3.0% 2.5% 4.7%* 4.1% 2.4%*
Illinois 4.2% 3.2% 9.1% 4.8% 2.6%
Indiana 3.4% 2.8% 5.7% 4.4%* 2.8%*
Iowa 2.9% 2.4% 4.9%* 3.9%* 2.3%*
Kansas 2.7% 2.6% 4.2%* 3.6%* 2.2%*
Kentucky 4.0% 3.3% 8.3% 5.0%* 3.2%*
Louisiana 3.3% 2.4% 4.7% 4.2% 2.7%*
Maine 2.5% 2.5% 4.1%* 3.2%* 2.0%*
Maryland 1.7% 1.2% 2.4% 2.1%* 1.4%*
Massachusetts 2.6% 2.2% 4.5% 3.9% 1.8%
Michigan 3.7% 3.3% 5.4% 4.3% 3.0%*
Minnesota 3.1% 2.9% 4.6%* 3.8%* 2.5%*
Mississippi 3.1% 2.2% 4.7% 3.9%* 2.5%*
Missouri 2.8% 2.4% 4.9% 3.5%* 2.3%*
Montana 2.6% 2.2% 4.1%* 3.2%* 2.1%*
Nebraska 2.0% 1.5% 3.3%* 2.7%* 1.6%*
Nevada 5.4% 4.4% 9.8% 5.3% 4.5%
New Hampshire 1.8% 1.8% 2.9%* 2.3%* 1.5%*
New Jersey 4.2% 3.4% 8.1% 4.2% 2.9%
New Mexico 3.7% 2.7% 5.3%* 4.10% 3.0%*
New York 3.9% 2.8% 6.9% 5.8% 2.9%
North Carolina 3.3% 2.7% 5.4% 3.2% 2.7%*
North Dakota 1.9% 1.6% 3.2%* 2.4%* 1.6%*
Ohio 3.4% 2.8% 6.1% 4.2%* 2.7%*
Oklahoma 2.8% 2.6% 4.7%* 3.4% 2.3%*
Oregon 3.4% 3.3% 5.5%* 4.4% 2.6%*
Pennsylvania 3.5% 3.2% 4.2% 5.6% 2.8%*
Rhode Island 2.7% 2.0% 4.3%* 4.9% 2.2%*
South Carolina 3.0% 2.1% 5.2% 3.7%* 2.4%*
South Dakota 1.9% 1.4% 3.0%* 2.4%* 1.5%*
Tennessee 3.1% 2.7% 4.5% 4.1%* 2.5%*
Texas 4.1% 2.9% 6.3% 5.0% 2.2%
Utah 2.5% 2.2% 4.0%* 3.2% 2.0%*
Vermont 1.8% 1.8% 2.9%* 2.3%* 1.5%*
Virginia 2.5% 2.1% 4.5% 2.6% 1.8%*
Washington 3.6% 3.5% 5.6%* 4.7% 2.5%
Washington D.C. 5.0% 2.0% 10.4% 4.1% 4.0%*
West Virginia 3.6% 3.4% 6.2%* 4.5%* 2.9%*
Wisconsin 2.9% 2.1% 5.1%* 4.3%* 2.3%*
Wyoming 2.9% 2.4% 4.7%* 4.3% 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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Third-quarter 2023 trends among white workers 

Nevada (4.4%) and California (4.1%) were the only two states with a white unemployment rate at or above 4% in the third quarter of 2023. Seven states saw white unemployment rates below 2% in the third quarter, with Maryland being the lowest at 1.2%. The national white unemployment rate for the third quarter of 2023 was 3%, a slight increase from the previous two quarters.  

White unemployment rates 2023 Q3

Highest: Nev. (4.4%)

Lowest: Md. (1.2%)

National: 3.0%

Third-quarter 2023 trends among Black workers 

Relative stability throughout the labor market through the third quarter of 2023 saw Black unemployment rates remain mostly unchanged across states. Notably, we have reached the point where all 50 states now have an unemployment rate below 10%—a point we haven’t seen since 2019 prior to the pandemic. Only Washington, D.C., (10.4%) retains a rate above 10%, though Nevada remains close at 9.8%. Maryland had the lowest Black unemployment rate in the third quarter at 2.4%. The national Black unemployment rate rose slightly once again, from 5.8% in the previous quarter to 5.9%.   

Black unemployment rates 2023 Q3

Highest: D.C. (10.4%), Nev. (9.8%)

Lowest: Md. (2.4%)

National: 5.9%

The national Black-white unemployment ratio for 2023 Q3 maintained its trend position at 2-to-1 in the third quarter of 2023. The Black-white unemployment ratio in D.C. fell from 6.3-to-1 to 5.3-to-1, though it still remained the highest in the nation. Pennsylvania also maintained its position as the state with the lowest Black-white unemployment ratio at 1.3-to-1. Once again there were no states where Black and white workers were equally likely to be unemployed.  

Black-white unemployment ratios 2023 Q3

Highest: D.C. (5.3-to-1)

Lowest: Penn. (1.3-to-1)

National: 2.0-to-1

Third-quarter 2023 trends among Hispanic workers

New York (5.8%) and Pennsylvania (5.6%) had the highest Hispanic unemployment rates in the third quarter of 2023; the rate in Pennsylvania dropped significantly from 7% in the second quarter. The majority of states (27, including D.C), had Hispanic unemployment rates above 4%, while nine states had rates below 3%. Maryland (2.1%*) had the lowest rate among the states, though the Hispanic sample size in Maryland was small, making that estimate less precise compared with states with larger Hispanic samples. Virginia (2.6%) had the lowest Hispanic unemployment rate among states with a larger Hispanic sample size.  

Hispanic unemployment rates 2023 Q3

Highest: N.Y. (5.8%), Penn. (5.6%)

Lowest: Md.* (2.1%), Va. (2.6%)

National: 4.6%

In the third quarter of 2023 the nationwide Hispanic-white unemployment ratio rose slightly from 1.5-to-1 to 1.6-to-1, meaning Hispanic workers were 60% percent more likely than white workers to be unemployed. Rhode Island maintained the highest Hispanic-white unemployment ratio at 2.5-to-1, while several states had a Hispanic-white unemployment ratio of 1.2-to-1 (California, Nevada, New Jersey, North Carolina, and Virginia).  

Hispanic-white unemployment ratios 2023 Q3

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

Lowest: Calif.,Nev., N.J., N.C., Va. (1.2-to-1)

National: 1.6-to-1

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

The third-quarter AAPI unemployment rate was highest in Nevada, with a rate of 4.5%. Most states had AAPI unemployment rates below 3% (43 states), and 12 states had unemployment rates at or below 2%. Most states have low AAPI population shares that make estimates less precise, but among those small sample states, Maryland had the lowest AAPI unemployment rate at 1.4%. Among those states with a larger sample size allowing for more precise estimates, Massachusetts once again had the lowest AAPI rate at 1.8%. The national AAPI unemployment rate was 3% in the third quarter of 2023, the same as the rate for white workers. 

AAPI unemployment rates 2023 Q3

Highest: Nev. (4.5%)

Lowest: Md.* (1.4%), Mass. (1.8%)

National: 3.0%

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2023 Q3 (percentage points)

State All White Black Hispanic AAPI
United States -0.1 -0.2 -0.3 0.1 -0.0
Alabama -1.2 -1.1 -2.1 -1.3* -0.9*
Alaska -1.5 -1.5 -2.6* -1.3* -0.3
Arizona -1.0 -0.9 -1.4* -1.0 -1.2*
Arkansas -1.3 -1.1 -2.3 -0.9* -0.9*
California -0.1 0.3 0.6 -0.5 -0.2
Colorado -0.1 -0.3 0.2* 0.4 -0.0*
Connecticut -0.3 -0.7 -0.3* 0.3 -0.2*
Delaware -0.0 0.6 -2.1 0.5* 0.1*
District of Columbia -0.6 -0.0 -1.2 -0.3 -0.4*
Florida -0.6 -0.3 -2.1 -0.3 -0.7*
Georgia -0.3 -0.2 -0.0 -0.5* -0.2*
Hawaii 0.6 -0.3 0.9* 1.0* 0.7
Idaho 0.2 -0.0 0.3* 0.6 0.2*
Illinois -0.0 -0.1 0.5 0.2 -0.3
Indiana -0.0 -0.3 0.8 0.3* 0.1*
Iowa 0.3 0.3 0.0* 0.6* 0.3*
Kansas -0.5 -0.4 -1.5* -0.3* -0.4*
Kentucky -0.1 -0.7 2.1 0.1* 0.0*
Louisiana -2.1 -1.0 -4.3 -2.7 -1.6*
Maine -0.7 -0.4 -1.2* -0.7* -0.5*
Maryland -1.8 -1.7 -2.4 -1.9* -1.2*
Massachusetts -0.2 -0.4 0.8 0.0 0.2
Michigan -0.0 -0.0 -1.4 -0.3 0.0*
Minnesota -0.4 -0.4 -1.0* -0.4* -0.3*
Mississippi -2.6 -1.1 -5.3 -3.0* -2.0*
Missouri -0.6 -0.6 -0.7 -0.6* -0.4*
Montana -0.9 -1.1 -1.6* -1.0* -0.7*
Nebraska -1.5 -1.2 -2.5* -1.9* -1.1*
Nevada 0.1 -0.6 1.4 0.6 -0.4
New Hampshire -0.8 -0.7 -1.3* -0.8* -0.6*
New Jersey 0.1 0.1 1.7 -0.5 -0.8
New Mexico -1.7 -1.3 -3.3* -1.9 -1.3*
New York -0.2 -0.8 0.5 0.5 1.0
North Carolina -0.5 -0.4 -0.4 -2.4 -0.4*
North Dakota -0.3 -0.4 -0.4* -0.3* -0.2*
Ohio -1.2 -0.8 -2.0 -1.8* -0.9*
Oklahoma -0.3 -0.0 -0.8* -0.3 -0.2*
Oregon -0.2 -0.2 -0.4* 0.4 -0.6*
Pennsylvania -1.2 -0.8 -4.6 -1.2 -0.9*
Rhode Island -0.9 -1.1 -1.6* -0.6 -0.7*
South Carolina 0.1 -0.4 1.2 0.2* 0.1*
South Dakota -0.6 -0.0 -1.0* -0.6* -0.4*
Tennessee -0.4 -0.1 -2.1 0.1* -0.2*
Texas 0.1 0.1 0.1 -0.0 -0.5
Utah -0.0 -0.2 -0.1* 0.5 0.1*
Vermont -0.4 -0.4 -0.8* -0.4* -0.3*
Virginia -0.5 -0.3 0.4 -1.1 -0.6*
Washington -0.7 -0.4 -1.0* -0.7 -0.6
West Virginia -1.7 -1.6 -2.5* -1.8* -1.2*
Wisconsin -0.1 -0.2 -0.7* 0.5* -0.0*
Wyoming -1.7 -1.6 -2.9* -0.3 -1.3*

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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Table 2

Black-white and Hispanic-white state unemployment rate ratios, 2023 Q3

State Black-white ratio Hispanic-white ratio
United States 2.0 1.6
Alabama 1.5 1.5*
Alaska 3.2* 2.3*
Arizona 2.0* 1.4
Arkansas 1.6 1.4*
California 1.7 1.2
Colorado 1.9* 1.7
Connecticut 2.2* 1.8
Delaware 1.6 1.4*
District of Columbia 5.3 2.1
Florida 1.8 1.3
Georgia 2.7 1.6*
Hawaii 2.2* 1.9*
Idaho 1.9* 1.7
Illinois 2.9 1.5
Indiana 2.0 1.6*
Iowa 2.0* 1.6*
Kansas 1.6* 1.4*
Kentucky 2.5 1.5*
Louisiana 1.9 1.7
Maine 1.6* 1.3*
Maryland 2.0 1.8*
Massachusetts 2.0 1.8
Michigan 1.6 1.3
Minnesota 1.6* 1.3*
Mississippi 2.1 1.8*
Missouri 2.1 1.5*
Montana 1.9* 1.5*
Nebraska 2.1* 1.7*
Nevada 2.2 1.2
New Hampshire 1.6* 1.3*
New Jersey 2.4 1.2
New Mexico 2.0* 1.5
New York 2.5 2.1
North Carolina 2.0 1.2
North Dakota 2.1* 1.6*
Ohio 2.1 1.5*
Oklahoma 1.8* 1.3
Oregon 1.7* 1.3
Pennsylvania 1.3 1.8
Rhode Island 2.2* 2.5
South Carolina 2.5 1.8*
South Dakota 2.1* 1.6*
Tennessee 1.7 1.5*
Texas 2.2 1.7
Utah 1.8* 1.4
Vermont 1.6* 1.3*
Virginia 2.1 1.2
Washington 1.6* 1.3
West Virginia 1.8* 1.3*
Wisconsin 2.4* 2.0*
Wyoming 1.9* 1.8

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 the Local Area Unemployment Statistics data to calculate the rates by race and ethnicity. For each state subgroup, we calculate the unemployment rate using the past 12 months of Current Population Survey 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 details 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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