The national jobless rate continues to hover above 6% and, based on several government forecasts, will not drop below the 5% that marks a complete economic recovery for several years. However, there are 14 states with unemployment under 5%, and in several of these, the figure has fallen below 4%, according to July Bureau of Labor Statistics (BLS) data. These states have a few things in common.
States with unemployment less than 4% are all in the Plains, with the exception of Vermont (3.7%) in the far Northeast. Among them are North Dakota (2.8%), South Dakota (3.7%), Nebraska (3.6%) and Utah at (3.6%). Each is sparsely populated, and most have energy industries that have had strong growth in the past three or four years.
Most of the states with unemployment below 5% are also in the central United States. These include Wyoming (4.4%), Oklahoma (4.6%), Idaho (4.8%), Iowa (4.5%), Kansas (4.9%), Minnesota (4.5%) and Montana (4.6%). Vermont’s neighbor, New Hampshire has an unemployment rate of 4.4%. Hawaii (4.4%) is the only state that falls outside the two regions.
In all probability, the states in the Plains have the advantage not only of the energy industry but the fact that their employment is dominated by just one or two other sectors. In most cases this is mining, agriculture or timber. Several of these states also have low tax rates for businesses and individuals.
READ ALSO: States Where It Is Hard to Find Full-Time Work
Many states, according to BLS data for July, that have strong employment numbers continue to improve:
The largest over-the-month percentage increase in employment occurred in Montana (+0.7 percent), followed by Arizona, Kentucky, Missouri, New Mexico, and Utah (+0.5 percent each). The largest over-the-month percentage decline in employment occurred in West Virginia (-0.4 percent), followed by Maryland (-0.3 percent) and Ohio and South Carolina (-0.2 percent each).Over the year, nonfarm employment increased in 49 states and the District of Columbia and decreased in Alaska (-0.7 percent). The largest over-the-year percentage increase occurred in North Dakota (+4.4 percent), followed by Nevada (+3.8 percent) and Utah (+3.6 percent).
The most fortunate states based on unemployment generally get more fortunate by the month.
READ ALSO: 10 States Struggling With Delinquent Debt
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.