States With the Highest Jobless Rates

Most of the states with the highest unemployment rates have seen their labor markets rebound over the past year, U.S. Bureau of Labor Statistics data shows. In the past month, however, the unemployment rates of some of these states inched up, while others fell slightly and a few were little changed.

The year-over-year rebound in the labor markets of states with high unemployment rates comes amid a significant improvement in the national jobless rate. However, each of these states has individual factors that have affected its job market over the past year.

Mississippi’s unemployment rate dropped to 6.6% last month from 7.8% a year earlier and from 6.8% in March. Improvements in the state’s unemployment rate have been driven partly by an increase in the number of jobs in the trade, transportation, utilities, professional and business services, and financial sectors.

Connecticut’s unemployment rate fell to 6.3%, down from 6.8% a year ago but up from 6.2% in March. The state actually lost 300 private sector jobs in April, but governments hired more people, and construction hiring was up 2.6%.

In California, the unemployment rate dropped to 6.3% last month, down from 7.8% a year earlier and 6.5% in March. The payrolls of professional and business services firms rose by 14,500 last month, while governments also hired more workers.

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Georgia’s unemployment rate came in at 6.3% in April, down from 7.3% a year earlier and unchanged versus March. The state added 7,400 jobs in April, with the largest gains in the professional and business services, arts, entertainment and recreation, local government and construction sectors. Over the past year, the largest payroll gains have come in the trade, transportation and warehousing sector and the leisure and hospitality sector. Hiring in the latter category was likely spurred by low oil prices, which increased Americans’ disposable income and made traveling within the U.S. cheaper.

Louisiana’s unemployment rate rose to 6.6% in April from 5.7% a year earlier and was unchanged from March. The state has been hit hard by the decline in oil prices and the resulting cuts in oil exploration activities.

Similarly, West Virginia’s jobless rate inched up to 7.0% last month from 6.8% a year earlier and 6.6% in March. Lower coal demand amid government mandates to reduce use of the fuel has hurt West Virginia’s labor market.

New Jersey’s unemployment rate inched down to 6.5% last month from 6.7% a year earlier and remained unchanged from March, although the number of people employed in the state exceeded 4 million in April for the first time since October 2008. Construction companies and government led job gains last month, but the leisure and hospitality sector shed 4,100 jobs in April. New Jersey’s hospitality industry obtains a significant amount of revenue from foreign tourism, which has declined in recent months due to the dollar’s strength. The continuing financial difficulties faced by the state also have kept government hiring in check.

South Carolina’s unemployment rate rose to 6.7% in April from 6.1% a year earlier. The state’s jobless rate was unchanged versus March. A higher labor participation rate has increased the state’s unemployment rate, as more people are looking for jobs. A weaker performance by the manufacturing sector recently also may have caused the unemployment rate to rise. But on an optimistic note, there were 56,000 more nonfarm jobs in the state last month than in April 2014.

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Nevada’s unemployment rate came in at 7.1% for April, down from 8.1% a year earlier and unchanged from March. The construction, trade transportation and utilities, and casino/hotel sectors have all added a significant number of workers over the past year. An increase in the number of people looking for work likely prevented the unemployment rate from dropping further last month.

New Mexico’s unemployment rate fell to 6.2% in April from 6.7% a year earlier, but its jobless rate inched up versus March, when it was 6.1%. Most of the state’s private sector industries have added jobs in the past year, and the state added 12,600 jobs between April 2014 and April 2015.