On Friday, June 17th, 2022, The U.S. Bureau of Labor Statistics (BLS) released its breakdown of the unemployment rates for each individual state for May.
In the chart below, the lightest colors represent the states with the lowest unemployment rates.
Looking at the above map, we can see that the lowest unemployment states run diagonally across the country, starting in Florida and ending in Montana and Idaho. Conversely, the states with the highest unemployment are located in the North East, the South West, and West Coast. Of course, minor exceptions exist, but generally, it holds.
May 2022 Unemployment Rate by State Table (Alphabetical)
| State | May 2022 Unemployment Rate | May 2021 Unemployment Rate | 12-month change |
| Alabama | 2.7% | 3.6% | -0.9% |
| Alaska | 4.7% | 6.8% | -2.1% |
| Arizona | 3.2% | 5.4% | -2.2% |
| Arkansas | 3.2% | 4.4% | -1.2% |
| California | 4.3% | 7.9% | -3.6% |
| Colorado | 3.5% | 5.8% | -2.3% |
| Connecticut | 4.2% | 6.7% | -2.5% |
| Delaware | 4.5% | 5.7% | -1.2% |
| District of Columbia | 5.7% | 6.9% | -1.2% |
| Florida | 3.0% | 4.9% | -1.9% |
| Georgia | 3.0% | 4.1% | -1.1% |
| Hawaii | 4.2% | 5.9% | -1.7% |
| Idaho | 2.5% | 3.7% | -1.2% |
| Illinois | 4.6% | 6.5% | -1.9% |
| Indiana | 2.2% | 4.0% | -1.8% |
| Iowa | 2.7% | 4.5% | -1.8% |
| Kansas | 2.3% | 3.4% | -1.1% |
| Kentucky | 3.8% | 4.7% | -0.9% |
| Louisiana | 4.0% | 5.9% | -1.9% |
| Maine | 3.2% | 4.9% | -1.7% |
| Maryland | 4.0% | 5.7% | -1.7% |
| Massachusetts | 3.9% | 5.9% | -2.0% |
| Michigan | 4.3% | 6.2% | -1.9% |
| Minnesota | 2.0% | 3.4% | -1.4% |
| Mississippi | 4.0% | 6.0% | -2.0% |
| Missouri | 3.1% | 4.5% | -1.4% |
| Montana | 2.4% | 3.6% | -1.2% |
| Nebraska | 1.9% | 2.5% | -0.6% |
| Nevada | 4.9% | 7.8% | -2.9% |
| New Hampshire | 2.1% | 3.7% | -1.6% |
| New Jersey | 3.9% | 6.6% | -2.7% |
| New Mexico | 5.1% | 7.2% | -2.1% |
| New York | 4.4% | 7.4% | -3.0% |
| North Carolina | 3.4% | 5.0% | -1.6% |
| North Dakota | 2.6% | 3.8% | -1.2% |
| Ohio | 3.9% | 5.4% | -1.5% |
| Oklahoma | 2.8% | 4.4% | -1.6% |
| Oregon | 3.6% | 5.6% | -2.0% |
| Pennsylvania | 4.6% | 6.7% | -2.1% |
| Rhode Island | 2.9% | 6.0% | -3.1% |
| South Carolina | 3.3% | 4.1% | -0.8% |
| South Dakota | 2.3% | 3.2% | -0.9% |
| Tennessee | 3.3% | 4.6% | -1.3% |
| Texas | 4.2% | 5.9% | -1.7% |
| Utah | 2.0% | 2.8% | -0.8% |
| Vermont | 2.3% | 3.6% | -1.3% |
| Virginia | 3.0% | 4.1% | -1.1% |
| Washington | 3.9% | 5.5% | -1.6% |
| West Virginia | 3.5% | 5.4% | -1.9% |
| Wisconsin | 2.9% | 4.1% | -1.2% |
| Wyoming | 3.2% | 4.7% | -1.5% |
| Puerto Rico | 6.2% | 8.1% | -1.9% |
States with the Highest Unemployment Rates
The record for the highest unemployment goes as usual to the two that are not really “states,” i.e., Puerto Rico and D.C. at 6.2% and 5.7%, respectively. Next comes New Mexico at 5.1%, Nevada at 4.9%, Alaska at 4.7%, Illinois and Pennsylvania at 4.6%, Delaware at 4.5%, New York at 4.4%, and California and Michigan tied for 10th worst place at 4.3%.
States with the Lowest Unemployment
The prize for the lowest unemployment goes to Nebraska at an impressive 1.9%! Followed by Minnesota and Utah at 2.0%. One of our outliers to the diagonal rule above is New Hampshire coming in at only 2.1%. Indiana follows NH at 2.2%. Kansas, South Dakota, and Vermont (another outlier) came in at 2.3%. Rounding out the top 10 is Montana at 2.4%.
Data sorted from lowest May 2022 Unemployment to Highest
| State | May 2022 Unemployment Rate | May 2021 Unemployment Rate | 12-month change |
| Nebraska | 1.9% | 2.5% | -0.6% |
| Minnesota | 2.0% | 3.4% | -1.4% |
| Utah | 2.0% | 2.8% | -0.8% |
| New Hampshire | 2.1% | 3.7% | -1.6% |
| Indiana | 2.2% | 4.0% | -1.8% |
| Kansas | 2.3% | 3.4% | -1.1% |
| South Dakota | 2.3% | 3.2% | -0.9% |
| Vermont | 2.3% | 3.6% | -1.3% |
| Montana | 2.4% | 3.6% | -1.2% |
| Idaho | 2.5% | 3.7% | -1.2% |
| North Dakota | 2.6% | 3.8% | -1.2% |
| Alabama | 2.7% | 3.6% | -0.9% |
| Iowa | 2.7% | 4.5% | -1.8% |
| Oklahoma | 2.8% | 4.4% | -1.6% |
| Rhode Island | 2.9% | 6.0% | -3.1% |
| Wisconsin | 2.9% | 4.1% | -1.2% |
| Florida | 3.0% | 4.9% | -1.9% |
| Georgia | 3.0% | 4.1% | -1.1% |
| Virginia | 3.0% | 4.1% | -1.1% |
| Missouri | 3.1% | 4.5% | -1.4% |
| Arizona | 3.2% | 5.4% | -2.2% |
| Arkansas | 3.2% | 4.4% | -1.2% |
| Maine | 3.2% | 4.9% | -1.7% |
| Wyoming | 3.2% | 4.7% | -1.5% |
| South Carolina | 3.3% | 4.1% | -0.8% |
| Tennessee | 3.3% | 4.6% | -1.3% |
| North Carolina | 3.4% | 5.0% | -1.6% |
| Colorado | 3.5% | 5.8% | -2.3% |
| West Virginia | 3.5% | 5.4% | -1.9% |
| Oregon | 3.6% | 5.6% | -2.0% |
| Kentucky | 3.8% | 4.7% | -0.9% |
| Massachusetts | 3.9% | 5.9% | -2.0% |
| New Jersey | 3.9% | 6.6% | -2.7% |
| Ohio | 3.9% | 5.4% | -1.5% |
| Washington | 3.9% | 5.5% | -1.6% |
| Louisiana | 4.0% | 5.9% | -1.9% |
| Maryland | 4.0% | 5.7% | -1.7% |
| Mississippi | 4.0% | 6.0% | -2.0% |
| Connecticut | 4.2% | 6.7% | -2.5% |
| Hawaii | 4.2% | 5.9% | -1.7% |
| Texas | 4.2% | 5.9% | -1.7% |
| California | 4.3% | 7.9% | -3.6% |
| Michigan | 4.3% | 6.2% | -1.9% |
| New York | 4.4% | 7.4% | -3.0% |
| Delaware | 4.5% | 5.7% | -1.2% |
| Illinois | 4.6% | 6.5% | -1.9% |
| Pennsylvania | 4.6% | 6.7% | -2.1% |
| Alaska | 4.7% | 6.8% | -2.1% |
| Nevada | 4.9% | 7.8% | -2.9% |
| New Mexico | 5.1% | 7.2% | -2.1% |
| District of Columbia | 5.7% | 6.9% | -1.2% |
| Puerto Rico | 6.2% | 8.1% | -1.9% |
Most Improved
I’ve always considered “most improved” to be sort of a “consolation prize,” i.e., “you used to be terrible, but now you are a lot less terrible,” and that prize goes to California. As mentioned above, California is still among the ten worst, but they are 3.6 percentage points less bad than they were a year ago. On the other hand, Rhode Island truly went from bad to good, with unemployment at 6% last year and dropping to 2.9% this year. So even though R.I. only lopped off 3.1 percentage points (compared to California’s 3.6 points), it certainly feels much more like an improvement for Rhode Island.
The rest of the “most improved” are still in “pretty bad” territory compared to the rest of the country. But other than the five worst states, the other states are all doing pretty well on a historical basis. But we have to remember that according to former Treasury Secretary Larry Summers: “We have a massive, overheated labor market… We have the highest ratio of vacancies to unemployment in the country’s history, by a large margin. We have shortages of labor, in everything from psychotherapy, to McDonald’s, in everything from investment analysts to gardeners, that suggests a surfeit of purchasing power and demand relative to the capacity of the economy to produce, and unless we bring those things into balance, we’re going to have not just higher inflation, but possibly even accelerating inflation. And we need to recognize that we have an overheated economy that we are going to need to cool off.”
In other words, the low unemployment rate is a symptom of the overheated economy, due to too much stimulus in the money supply, so in this case, it is NOT a good thing. Although this is not the individual state’s fault… but the variation between states is one indicator of how well their individual policies are working. However, some states like Texas, New Mexico, and Arizona are suffering disproportionately due to the Federal government’s Southern border policy. With millions of illegals streaming in and willing to work for below minimum wage they are forcing legal workers out of the market.
Sorted by Most Improvement First
| State | May 2022 Unemployment Rate | May 2021 Unemployment Rate | 12-month change |
| California | 4.3% | 7.9% | -3.6% |
| Rhode Island | 2.9% | 6.0% | -3.1% |
| New York | 4.4% | 7.4% | -3.0% |
| Nevada | 4.9% | 7.8% | -2.9% |
| New Jersey | 3.9% | 6.6% | -2.7% |
| Connecticut | 4.2% | 6.7% | -2.5% |
| Colorado | 3.5% | 5.8% | -2.3% |
| Arizona | 3.2% | 5.4% | -2.2% |
| New Mexico | 5.1% | 7.2% | -2.1% |
| Alaska | 4.7% | 6.8% | -2.1% |
| Pennsylvania | 4.6% | 6.7% | -2.1% |
| Mississippi | 4.0% | 6.0% | -2.0% |
| Massachusetts | 3.9% | 5.9% | -2.0% |
| Oregon | 3.6% | 5.6% | -2.0% |
| Puerto Rico | 6.2% | 8.1% | -1.9% |
| Illinois | 4.6% | 6.5% | -1.9% |
| Michigan | 4.3% | 6.2% | -1.9% |
| Louisiana | 4.0% | 5.9% | -1.9% |
| West Virginia | 3.5% | 5.4% | -1.9% |
| Florida | 3.0% | 4.9% | -1.9% |
| Iowa | 2.7% | 4.5% | -1.8% |
| Indiana | 2.2% | 4.0% | -1.8% |
| Hawaii | 4.2% | 5.9% | -1.7% |
| Texas | 4.2% | 5.9% | -1.7% |
| Maryland | 4.0% | 5.7% | -1.7% |
| Maine | 3.2% | 4.9% | -1.7% |
| Washington | 3.9% | 5.5% | -1.6% |
| North Carolina | 3.4% | 5.0% | -1.6% |
| Oklahoma | 2.8% | 4.4% | -1.6% |
| New Hampshire | 2.1% | 3.7% | -1.6% |
| Ohio | 3.9% | 5.4% | -1.5% |
| Wyoming | 3.2% | 4.7% | -1.5% |
| Missouri | 3.1% | 4.5% | -1.4% |
| Minnesota | 2.0% | 3.4% | -1.4% |
| Tennessee | 3.3% | 4.6% | -1.3% |
| Vermont | 2.3% | 3.6% | -1.3% |
| District of Columbia | 5.7% | 6.9% | -1.2% |
| Delaware | 4.5% | 5.7% | -1.2% |
| Arkansas | 3.2% | 4.4% | -1.2% |
| Wisconsin | 2.9% | 4.1% | -1.2% |
| North Dakota | 2.6% | 3.8% | -1.2% |
| Idaho | 2.5% | 3.7% | -1.2% |
| Montana | 2.4% | 3.6% | -1.2% |
| Georgia | 3.0% | 4.1% | -1.1% |
| Virginia | 3.0% | 4.1% | -1.1% |
| Kansas | 2.3% | 3.4% | -1.1% |
| Kentucky | 3.8% | 4.7% | -0.9% |
| Alabama | 2.7% | 3.6% | -0.9% |
| South Dakota | 2.3% | 3.2% | -0.9% |
| South Carolina | 3.3% | 4.1% | -0.8% |
| Utah | 2.0% | 2.8% | -0.8% |
| Nebraska | 1.9% | 2.5% | -0.6% |
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