State Unemployment by Race and Ethnicity
Low unemployment across the board led to a healthy yet still inequitable labor market.
Key numbers • 2023 Q4
2023 Q4 • Updated February 2024
The fourth quarter of 2023 saw some group- and state-specific unemployment rates rise slightly as nationwide rates remained low
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 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. Due to 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
Fourth-quarter 2023 state unemployment rates, trends, and ratios
At the end of 2023 the economy was in as strong an overall position as it has been over the course of the recovery from the pandemic recession though there were small changes across groups and between states during the fourth quarter. The national unemployment rate remained constant at a historically low 3.7%. Nevada and Washington, D.C., maintained their unemployment rates of 5.4% and 5.0% respectively, and Maryland maintained its position of the lowest state unemployment in the country, despite a negligible rise from 1.7% to 1.8%.
Overall unemployment rates 2023 Q4
Highest: Nev. (5.4%), D.C. (5.0%)
Lowest: Md. (1.8%)
National: 3.7%
The fourth quarter of 2023 remained largely in step with the previous three quarters of the year—steady growth, low unemployment, and inflation reduction compared with 2021 and 2022, alongside persistent relative disparities in unemployment rates. The consistency with which we have seen low unemployment rates across groups and across many states is indicative of the strength of the overall economy right now, four years after the pandemic recession. The persistence of relative disparities in unemployment rates, however, points to the reality that economic growth alone is not sufficient in tackling structural inequities in the U.S. labor market. The economy may not be sick right now, but it has chronic structural conditions that need to be addressed; labor market inequity is one of those issues.2
In March 2022, the Fed embarked on a series of interest rate hikes to slow the economy down and curtail rising inflation, risking raising the unemployment rate in the process. Conventional economic thought long held that for inflation to fall, unemployment would need to rise above the low levels seen throughout the pandemic recovery. Consistent low unemployment through the recovery does not seem to have led to the economy “running too hot” or to out-of-control inflation. In fact, inflation slowed through the end of 2023 alongside unemployment rates that have remained historically low. Since there is no indication that the unemployment rate is too low to sustain falling inflation, the Fed could at this point stand to lower interest rates.
State unemployment rates, by race/ethnicity and overall, 2023 Q4
| State | All | White | Black | Hispanic | AAPI |
|---|---|---|---|---|---|
| United States | 3.7% | 3.0% | 5.8% | 4.8% | 3.1% |
| Alabama | 2.4% | 2.0% | 3.2% | 3.1%* | 2.0%* |
| Alaska | 4.4% | 2.5% | 6.9%* | 5.2%* | 3.5% |
| Arizona | 4.3% | 3.5% | 6.8%* | 4.7% | 3.2%* |
| Arkansas | 3.3% | 2.8% | 5.4% | 4.1%* | 2.7%* |
| California | 4.9% | 4.5% | 7.1% | 5.4% | 4.1% |
| Colorado | 3.3% | 2.8% | 5.4%* | 4.8% | 2.8%* |
| Connecticut | 3.6% | 3.0% | 5.7%* | 5.2% | 3.0%* |
| Delaware | 4.2% | 3.7% | 5.2% | 5.2%* | 3.5%* |
| Florida | 2.9% | 2.4% | 4.5% | 3.1% | 2.0%* |
| Georgia | 3.4% | 2.2% | 5.7% | 3.8%* | 2.8%* |
| Hawaii | 2.9% | 2.7% | 4.5%* | 4.0%* | 2.7% |
| Idaho | 3.3% | 2.8% | 5.1%* | 4.6% | 2.7%* |
| Illinois | 4.7% | 3.7% | 10.7% | 4.8% | 3.0% |
| Indiana | 3.6% | 2.8% | 6.7% | 4.9%* | 3.0%* |
| Iowa | 3.2% | 2.7% | 5.6%* | 4.3%* | 2.7%* |
| Kansas | 2.9% | 2.7% | 4.6%* | 3.7%* | 2.4%* |
| Kentucky | 4.3% | 3.3% | 9.4% | 5.4%* | 3.5%* |
| Louisiana | 3.5% | 2.9% | 4.5% | 4.1% | 2.9%* |
| Maine | 3.0% | 2.9% | 4.7%* | 3.8%* | 2.5%* |
| Maryland | 1.8% | 1.1% | 2.7% | 2.3%* | 1.6%* |
| Massachusetts | 3.0% | 2.6% | 4.7% | 4.2% | 2.7% |
| Michigan | 4.2% | 3.8% | 6.2% | 5.0% | 3.5%* |
| Minnesota | 3.1% | 2.8% | 4.6%* | 3.9%* | 2.5%* |
| Mississippi | 3.3% | 2.5% | 4.5% | 4.2%* | 2.7%* |
| Missouri | 3.2% | 2.6% | 6.0% | 4.1%* | 2.7%* |
| Montana | 3.0% | 2.5% | 4.7%* | 3.8%* | 2.5%* |
| Nebraska | 2.3% | 1.7% | 3.5%* | 3.0%* | 1.9%* |
| Nevada | 5.4% | 4.5% | 9.0% | 5.3% | 5.0% |
| New Hampshire | 2.3% | 2.3% | 3.6%* | 2.9%* | 1.9%* |
| New Jersey | 4.7% | 4.0% | 8.1% | 4.8% | 3.8% |
| New Mexico | 3.9% | 3.0% | 5.2%* | 4.3% | 3.2%* |
| New York | 4.3% | 3.1% | 7.4% | 6.5% | 3.1% |
| North Carolina | 3.5% | 2.8% | 5.4% | 3.7% | 2.9%* |
| North Dakota | 1.9% | 1.6% | 3.1%* | 2.4%* | 1.6%* |
| Ohio | 3.6% | 3.2% | 5.8% | 5.0%* | 3.0%* |
| Oklahoma | 3.3% | 2.9% | 5.6%* | 4.0% | 2.7%* |
| Oregon | 3.6% | 3.6% | 5.7%* | 4.6% | 2.7%* |
| Pennsylvania | 3.4% | 3.1% | 4.5% | 5.0% | 2.8%* |
| Rhode Island | 2.9% | 2.2% | 4.6%* | 4.9% | 2.4%* |
| South Carolina | 3.0% | 2.2% | 4.6% | 3.8%* | 2.5%* |
| South Dakota | 2.0% | 1.6% | 3.1%* | 2.5%* | 1.7%* |
| Tennessee | 3.4% | 2.9% | 5.1% | 4.6%* | 2.8%* |
| Texas | 4.1% | 2.8% | 6.0% | 5.1% | 2.3% |
| Utah | 2.8% | 2.3% | 4.3%* | 3.8% | 2.3%* |
| Vermont | 2.1% | 2.1% | 3.3%* | 2.7%* | 1.7%* |
| Virginia | 2.9% | 2.3% | 4.8% | 3.5% | 2.2%* |
| Washington | 4.0% | 3.9% | 5.9%* | 5.5% | 2.7% |
| Washington D.C. | 5.0% | 2.1% | 9.9% | 4.6% | 4.2%* |
| West Virginia | 4.2% | 4.0% | 7.0%* | 5.3%* | 3.5%* |
| Wisconsin | 3.3% | 2.5% | 6.1%* | 4.9%* | 2.7%* |
| Wyoming | 3.0% | 2.3% | 4.6%* | 5.3% | 2.5%* |
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.
Fourth-quarter 2023 trends among white workers
Nevada and California remained the two states with the highest white unemployment rates, both at 4.5%, though this quarter New Jersey and West Virginia joined them as the only states with white unemployment rates of 4.0% or higher. Maryland once again had the lowest white unemployment rate (1.1%) and was joined by the Dakotas and Nebraska as one of four states with white unemployment rates below 2.0%. The national white unemployment rate remained at 3.0%.
White unemployment rates 2023 Q4
Highest: Nev. (4.5%), Calif. (4.5%)
Lowest: Md. (1.1%)
National: 3.0%
Fourth-quarter 2023 trends among Black workers
Slight variability across states led to a shift in the states with the absolute highest Black unemployment rates in the fourth quarter of 2023 though the differences from quarter to quarter were relatively small. Black unemployment in Washington, D.C., fell to 9.9%, but the Black unemployment rate in Illinois rose to 10.7%, leaving the number of states (inclusive of Washington, D.C.) where the Black unemployment rate was below 10.0% at fifty. Maryland maintained its position of having the lowest Black unemployment in the country as well, with a 2.7% unemployment rate in the fourth quarter. The national Black unemployment rate remained largely unchanged, falling from 5.9% to 5.8% from the third to fourth quarters.
Black unemployment rates 2023 Q4
Highest: Ill. (10.7%), D.C. (9.9%)
Lowest: Md. (2.7%)
National: 5.8%
Once again, the national Black–white unemployment ratio for 2023 Q4 maintained its position of 2.0-to-1. While Washington, D.C., also maintained the highest Black-white unemployment ratio in the country, that ratio fell once again quarter-to-quarter, from 5.3-to-1 in 2023 Q3 to 4.7-to-1 in 2023 Q4. This demonstrates the power of sustained, inclusive economic growth and strong labor markets to reduce racial inequity though we will likely need more targeted policy to reach parity. Delaware had the lowest Black-white unemployment ratio in the fourth quarter at 1.4-to-1. There were no states where Black and white workers were equally likely to be unemployed.
Black-white unemployment ratios 2023 Q4
Highest: D.C. (4.7-to-1)
Lowest: Del. (1.4-to-1)
National: 2.0-to-1
Fourth-quarter 2023 trends among Hispanic workers
The Hispanic unemployment rate in New York rose significantly in the fourth quarter of 2023, from 5.8% in the third quarter to 6.5%; New York was the only state in the country where the Hispanic unemployment rate was above 6.0%. The number of states with Hispanic unemployment rates above 4.0% rose from the third quarter to the fourth quarter (27 in Q3 vs. 32 in Q4), both inclusive of Washington, D.C., while the number of states with Hispanic unemployment rates below 3.0% fell (nine in Q3 vs. five in Q4). Maryland once again had the lowest Hispanic unemployment rate, at 2.3%* though the Hispanic sample size in Maryland is small, making that estimate less precise compared with states with larger Hispanic sample sizes. Among those states with larger Hispanic sample sizes, Florida (3.1%) had the lowest Hispanic unemployment rate. The national Hispanic unemployment rate rose from 4.6% to 4.8%.
Hispanic unemployment rates 2023 Q4
Highest: N.Y. (6.5%)
Lowest: Md.* (2.3%), Fla. (3.1%)
National: 4.8%
In the fourth quarter of 2023 the nationwide Hispanic–white unemployment ratio maintained its position at 1.6-to-1, meaning Hispanic workers were 60% more likely than white workers to be unemployed across the nation. Wyoming had the highest Hispanic-white unemployment ratio among the states, at 2.3-to-1. While there were no states where Hispanic Americans and white Americans were equally likely to be unemployed, in three states (California, Nevada, and New Jersey) the Hispanic-white unemployment rate was as low as 1.2-to-1.
Hispanic-white unemployment ratios 2023 Q4
Highest: Wyo. (2.3-to-1)
Lowest: Calif.,Nev., N.J. (1.2-to-1)
National: 1.6-to-1
Fourth-quarter 2023 trends among Asian American and Pacific Islander (AAPI) workers
The fourth-quarter AAPI unemployment rate was once again highest in Nevada, rising from 4.5% in the third quarter to 5.0%. The number of states with AAPI unemployment rates below 3.0% fell from the third quarter to the fourth quarter (43 in Q3 vs. 35 in Q4). Most states have low AAPI population shares that make unemployment rate estimates less precise. Among those small sample size states, Maryland and North Dakota had the lowest AAPI unemployment rates at 1.6%*. Among the states with larger sample sizes allowing for more precise estimates, Texas had the lowest AAPI unemployment rate at 2.3%. The national unemployment rate for AAPI workers rose slightly from 3.0% to 3.1% in the fourth quarter of 2023.
AAPI unemployment rates 2023 Q4
Highest: Nev. (5.0%)
Lowest: Md.*, N.D.* (1.6%); Texas (2.3%)
National: 3.1%
Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2023 Q4 (percentage points)
| State | All | White | Black | Hispanic | AAPI |
|---|---|---|---|---|---|
| United States | -0.1 | -0.2 | -0.4 | 0.2 | 0.1 |
| Alabama | -0.9 | -0.8 | -1.5 | -0.8* | -0.6* |
| Alaska | -1.0 | -1.0 | -2.0* | -0.7* | -0.3 |
| Arizona | -0.6 | -0.5 | -0.7* | -0.5 | -0.9* |
| Arkansas | -0.7 | -0.9 | -1.0 | -0.2* | -0.4* |
| California | 0.2 | 0.6 | 0.5 | -0.1 | -0.1 |
| Colorado | 0.2 | -0.0 | 0.7* | 0.8 | 0.3* |
| Connecticut | -0.2 | -0.5 | -0.6* | 0.6 | -0.0* |
| Delaware | 0.1 | 0.8 | -2.5 | 0.8* | 0.3* |
| District of Columbia | -0.6 | 0.1 | -1.6 | 0.2 | -0.3* |
| Florida | -0.4 | -0.2 | -1.7 | -0.1 | -0.4* |
| Georgia | -0.2 | -0.2 | -0.2 | -0.2* | -0.0* |
| Hawaii | 0.7 | 0.3 | 0.9* | 1.1* | 0.7 |
| Idaho | 0.5 | 0.2 | 0.6* | 1.0 | 0.6* |
| Illinois | 0.5 | 0.4 | 2.0 | 0.1 | 0.1 |
| Indiana | 0.2 | -0.3 | 1.9 | 0.8* | 0.3* |
| Iowa | 0.6 | 0.6 | 0.7* | 0.9* | 0.6* |
| Kansas | -0.4 | -0.2 | -1.1* | -0.2* | -0.2* |
| Kentucky | 0.2 | -0.6 | 3.2 | 0.5* | 0.3* |
| Louisiana | -1.9 | -0.6 | -4.5 | -2.8 | -1.3* |
| Maine | -0.2 | 0.0 | -0.5* | -0.0* | -0.0* |
| Maryland | -1.7 | -1.7 | -2.2 | -1.7* | -0.9* |
| Massachusetts | 0.2 | -0.1 | 0.9 | 0.2 | 1.2 |
| Michigan | 0.5 | 0.5 | -0.6 | 0.5 | 0.5* |
| Minnesota | -0.4 | -0.5 | -1.0* | -0.3* | -0.2* |
| Mississippi | -2.5 | -0.8 | -5.6 | -2.7* | -1.8* |
| Missouri | -0.2 | -0.4 | 0.4 | 0.0* | -0.0* |
| Montana | -0.5 | -0.7 | -1.0* | -0.4* | -0.3* |
| Nebraska | -1.2 | -1.0 | -2.2* | -1.6* | -0.9* |
| Nevada | 0.1 | -0.5 | 0.6 | 0.6 | 0.0 |
| New Hampshire | -0.3 | -0.1 | -0.7* | -0.2* | -0.1* |
| New Jersey | 0.6 | 0.7 | 1.7 | 0.1 | 0.1 |
| New Mexico | -1.5 | -1.0 | -3.3* | -1.7 | -1.0* |
| New York | 0.2 | -0.4 | 0.9 | 1.2 | 1.3 |
| North Carolina | -0.4 | -0.3 | -0.4 | -1.9 | -0.2* |
| North Dakota | -0.3 | -0.4 | -0.5* | -0.2* | -0.2* |
| Ohio | -0.9 | -0.5 | -2.3 | -1.1* | -0.6* |
| Oklahoma | 0.1 | 0.3 | 0.1* | 0.2 | 0.2* |
| Oregon | 0.0 | 0.1 | -0.2* | 0.5 | -0.4* |
| Pennsylvania | -1.3 | -0.9 | -4.4 | -1.7 | -0.8* |
| Rhode Island | -0.7 | -0.9 | -1.4* | -0.5 | -0.4* |
| South Carolina | 0.0 | -0.3 | 0.6 | 0.3* | 0.2* |
| South Dakota | -0.5 | 0.2 | -1.0* | -0.4* | -0.3* |
| Tennessee | -0.1 | 0.1 | -1.5 | 0.6* | 0.1* |
| Texas | 0.0 | -0.1 | -0.2 | 0.1 | -0.5 |
| Utah | 0.3 | -0.2 | 0.2* | 1.0 | 0.3* |
| Vermont | -0.2 | -0.2 | -0.4* | -0.0* | -0.0* |
| Virginia | -0.1 | -0.2 | 0.8 | -0.3 | -0.2* |
| Washington | -0.3 | 0.0 | -0.7* | 0.1 | -0.3 |
| West Virginia | -1.1 | -1.0 | -1.7* | -1.0* | -0.7* |
| Wisconsin | 0.3 | 0.1 | 0.3* | 1.0* | 0.3* |
| Wyoming | -1.7 | -1.7 | -3.0* | 0.6 | -1.2* |
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 Q4
| State | Black-white ratio | Hispanic-white ratio |
|---|---|---|
| United States | 2.0 | 1.6 |
| Alabama | 1.6 | 1.5* |
| Alaska | 2.8* | 2.1* |
| Arizona | 2.0* | 1.4 |
| Arkansas | 2.0 | 1.5* |
| California | 1.6 | 1.2 |
| Colorado | 2.0* | 1.7 |
| Connecticut | 1.9* | 1.8 |
| Delaware | 1.4 | 1.4* |
| District of Columbia | 4.7 | 2.2 |
| Florida | 1.9 | 1.3 |
| Georgia | 2.6 | 1.7* |
| Hawaii | 1.7* | 1.5* |
| Idaho | 1.9* | 1.7 |
| Illinois | 2.9 | 1.3 |
| Indiana | 2.4 | 1.8* |
| Iowa | 2.1* | 1.6* |
| Kansas | 1.7* | 1.4* |
| Kentucky | 2.8 | 1.6* |
| Louisiana | 1.5 | 1.4 |
| Maine | 1.6* | 1.3* |
| Maryland | 2.4 | 2.0* |
| Massachusetts | 1.8 | 1.6 |
| Michigan | 1.6 | 1.3 |
| Minnesota | 1.6* | 1.4* |
| Mississippi | 1.8 | 1.7* |
| Missouri | 2.4 | 1.6* |
| Montana | 1.9* | 1.5* |
| Nebraska | 2.1* | 1.8* |
| Nevada | 2.0 | 1.2 |
| New Hampshire | 1.5* | 1.3* |
| New Jersey | 2.1 | 1.2 |
| New Mexico | 1.7* | 1.4 |
| New York | 2.4 | 2.1 |
| North Carolina | 1.9 | 1.3 |
| North Dakota | 2.0* | 1.6* |
| Ohio | 1.8 | 1.6* |
| Oklahoma | 1.9* | 1.4 |
| Oregon | 1.6* | 1.3 |
| Pennsylvania | 1.5 | 1.6 |
| Rhode Island | 2.1* | 2.2 |
| South Carolina | 2.1 | 1.7* |
| South Dakota | 2.0* | 1.6* |
| Tennessee | 1.8 | 1.6* |
| Texas | 2.2 | 1.8 |
| Utah | 1.9* | 1.7 |
| Vermont | 1.6* | 1.3* |
| Virginia | 2.1 | 1.5 |
| Washington | 1.5* | 1.4 |
| West Virginia | 1.8* | 1.3* |
| Wisconsin | 2.5* | 2.0* |
| Wyoming | 2.0* | 2.3 |
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.
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.
2. One solution to such racial labor market inequity across states could be the institution of guaranteed employment programs for areas with chronically high unemployment. These programs would provide a federally funded job at a suitable wage with benefits and safe working conditions for every adult who needed one, with work determined based on community need.