This State Has the Lowest Unemployment in America

By Douglas A. McIntyre Published Nov 22, 7:30AM EST

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This State Has the Lowest Unemployment in America — © Matt Bills / iStock via Getty Images

The COVID-19 pandemic drove unemployment to a high not seen since World War II. In April 2020, the figure reached 14.8%, according to the Congressional Research Service. That was up from 3.5% in February 2020. As COVID-19 numbers have slowly dropped (with some interruptions of large spikes), the jobless rate dropped to 4.6% in October. The improvement almost certainly was triggered by huge federal government investments to restart the economy.

As has been the case throughout the period that the Bureau of Labor Statistics (BLS) has collected jobless data, figures vary widely from state to state and city to city. In its “State Employment and Unemployment — October 2021” report, the researchers pointed out that “Nonfarm payroll employment increased in 25 states and the District of Columbia and was essentially unchanged in 25 states in October 2021.”

Industries in some areas recover faster than others. In several metro areas, the unemployment rate is above 8%, and in one it is over 18%. In terms of states, in October, the highest unemployment rate was 7.3% in California and Nevada. California is the largest state by population, so it is hard to pin down one cause for its figure. Nevada, on the other hand, has one main industry (gambling and hospitality) that provides hundreds of thousands of jobs. COVID-19 has caused the shuttering of much of the gambling industry.
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The state with the lowest unemployment rate in October was Nebraska at 1.9%. According to The Wall Street Journal:

Nebraska’s unemployment rate ticked down to 1.9% last month, well below the national jobless rate of 4.6% and the lowest for state records tracing back to 1976, Labor Department data show.

Why? There is no single explanation. The economy of the state is driven, in part, by agriculture. Food shortages have boosted this industry. The Offutt Air Force Base employs over 5,000 people and is one of the largest employers in Omaha. The city also has two large health care providers: Nebraska Medicine and Methodist Health System. Financial companies employ several thousand people.

What is certain is that Nebraska has been among the states with the lowest jobless rate for years. Under current circumstances, it is hard to imagine how and why that would change.

Click here to see which are the 25 highest-paying jobs in America.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.