Best and Worst States to Be Unemployed

New Jersey is the only state in the country where over half of all unemployed residents receive unemployment insurance benefits. The typical UI recipient in the Garden State is paid $433 a week, slightly more than the average payout across all states of $347.

The stronger than average social safety net may be necessary due to the weaker than average job market. Overall employment in New Jersey dropped by 0.2% in the last year — making it one of just a handful of states losing jobs. The state’s 2018 unemployment rate of 4.1% is slightly above the comparable 3.9% national rate.

The average unemployment insurance recipient in the United States is paid the equivalent of less than a third of the average weekly earnings in UI benefits. In Utah, the average recipient is paid 45.2% of the average weekly wage, the second highest share of any state.

Though Utah’s UI benefit recipiency rate of 14.9% is among the lowest of any state, strong economic conditions make it less likely that workers in the state will face unemployment for a significant duration. Utah ranks among the best states for business, and in the last year, Utah’s 1.7% job growth over the last year was higher than most other states. Similarly, its annual unemployment rate of 3.1% was well below the 3.9% national rate.

The average weekly unemployment insurance payout in Nevada is $348, almost exactly in line with the national average. Working wages, however, tend to be slightly lower than average in Nevada, and as a result, unemployment insurance covers a larger than typical share of weekly wages in the state.

In the last year, the number of people working in Nevada climbed by 3.4%, the second highest employment growth of any state. Nevada’s near nation-leading job growth is driven in part by its entertainment and hospitality industry, which is centered around gaming in Las Vegas. On a per capita spending basis, Nevada spends more on gambling than any other state.

Workers in Vermont are less likely to find themselves out of a job than those in nearly every other state. Just 2.7% of the state’s labor force was unemployed in 2018, well below the 3.9% national unemployment rate. A strong job market means that even those who are unemployed are less likely to remain so for long, and in Vermont, just 13.8% of unemployment benefit recipients exhaust their benefits before finding a job, the smallest share of any state. For reference, 35.9% of UI benefit recipients nationwide exhaust their benefits before finding work again.

Unemployment benefit recipients in Colorado are paid an average of $432 a week, or about 39% of the average working wage in the state. Nationwide, the average weekly UI payout is $347, which is just 32% of the average weekly working wage.

Unemployment is also less common in Colorado than it is nationwide. Just 3.3% of the labor force was out of a job in 2018 compared to the 3.9% national unemployment rate. Due in no small part to a strong job market, Colorado ranks among the best states to live in.

Only three states have a higher average weekly UI benefit payout than Minnesota. UI benefit recipients get an average of $453 a week while they look for work, well above the national average of $347. Minnesota’s strong job market — evidenced by a 2.9% annual unemployment rate — means the unemployed are less likely to remain jobless for long. Just 31.7% of UI recipients in Minnesota reach the end of their benefits before finding work, slightly lower than the 35.9% national UI exhaustion rate.

The unemployment insurance recipiency rate is lower than average in Idaho, as is the average weekly payout. Workers in the state, however, are less likely to have to rely on them for an extended period of time as workers nationwide thanks to a booming job market. Over the last year, overall employment climbed by 3.1% in Idaho, more than in all but three other states. Additionally, Idaho’s 2.8% unemployment rate in 2018 is among the lowest in the country — well below the comparable 3.9% national rate.

Iowa appears to have one of the least restrictive unemployment insurance programs of any state. An estimated 36.6% of all unemployed residents are receiving UI benefits, well above the 26.3% national recipiency rate. Weekly payouts also go further than average, covering 42% of the average working wage compared to nationwide average weekly UI payout covers of only 32% of the average weekly wage.

Workers in Iowa also benefit from a strong job market. Just 2.5% of the state’s labor force are unemployed, nearly the lowest unemployment rate among states.

By several measures, Hawaii has one of the most generous unemployment insurance programs in the country. The average weekly UI payout in the state of $503 is well above the $347 national average. That amount covers 53% of the average weekly working wage in Hawaii, the largest share of any state.

Hawaii also has one of the best economies of any state. Just 2.4% of workers in Hawaii were out of a job in 2018, the lowest annual unemployment rate of any state.

Massachusetts spends more on unemployment benefits on a per person basis than every other state. Of all unemployed persons in the state, 48.0% receive UI benefits, nearly double the 26.3% recipiency rate across all states. Additionally, those with UI benefits are paid an average of $515 per week, the highest average weekly payment in the country. The state’s strong social safety net does not stop with unemployment benefits. Massachusetts also spends more on health care than all but a handful of states.

Only about 12.6% of unemployed workers in Georgia receive unemployment insurance benefits, less than half the national UI recipiency rate of 26.3%. For those receiving UI benefits, weekly payments are relatively low, at just $290 on average. Nationwide, the typical weekly UI payment is $347. However, unlike many of the other states that rank among the worst places to be unemployed, Georgia has a relatively healthy job market. Employment climbed by 1.7% in the state last year and just 3.9% of workers were unemployed in 2018, both of which are roughly in line with the respective U.S. rates.

Only one in every five out-of-job workers in Michigan receive UI benefits, compared to more than one in four unemployed Americans. Joblessness is also a larger problem in Michigan than it is in most states, as 4.1% of the labor force were out of work in 2018 compared to 3.9% of American workers. Unemployment is far worse in certain pockets of the state, and largely because of weak economic conditions, half a dozen Michigan cities, including Detroit and Flint, rank among the 50 worst cities to live in.

Only 17.4% of unemployed workers in Ohio receive UI benefits, a smaller share than in most states. Nationwide, 26.3% of unemployed workers receive UI benefits. The lower than average coverage in Ohio comes with greater than average need. In 2018, an average of 4.6% of workers were unemployed in the Buckeye State, a higher unemployment rate than in all but half a dozen states.

Though North Carolina’s 3.9% unemployment rate in 2018 is the same as the comparable national rate, joblessness is much more likely to be a financial strain in the state than on average nationwide. Only about one in every 10 workers in the state who are out of a job receive UI benefits, compared to more than one in every four nationwide. Additionally, the average weekly UI benefit payout of $256 in North Carolina covers only about 27% of the average weekly working wage in the state. Meanwhile, the average national weekly UI payout of $347 covers 32% of the average worker’s weekly earnings.

Tennessee pays unemployment insurance recipients an average of just $144 a week, the least of any state and less than half the average payment of $347 across all states. That payment covers just 15.2% of the average weekly working wage in the state, also the smallest share in the country and less than half the comparable 32.1% nationwide share.

Fortunately, Tennessee’s relatively strong job market reduces the number of people who need to depend on unemployment benefits. Just 3.5% of the state’s labor force are out of work, below the 3.9% national unemployment rate.

The average weekly unemployment insurance payout in Wyoming of $370 covers about 41% of the average weekly working wage, more than in the majority of states. However, a relatively small share of unemployed state residents are able to take advantage of the relatively large payout. Only 16.2% of unemployed Wyoming residents receive UI benefits compared to 26.3% of unemployed Americans. On top of that, finding a job in Wyoming may be more difficult than in many other states. The state’s unemployment rate is 4.1%, slightly higher than the 3.9% national unemployment rate.

The average weekly unemployment insurance payout in West Virginia is $287, less than most states and well below the $347 national average. Joblessness is a widespread problem in West Virginia. The state’s annual unemployment rate of 5.3% is the second highest among states. Many employers may be driven away from the state as a broad range of economic conditions make West Virginia one of the worst states for business.

Only 14.4% of unemployed Mississippi residents receive unemployment insurance benefits, a far smaller share than the 26.3% of unemployed Americans. Not only does the state’s unemployment insurance program appear to be more restrictive, but it is also less generous. The average weekly UI payout in MIssissippi is just $206, less than in every state other than Tennessee. Mississippi also has one of the highest annual unemployment rates in the country, at 4.8%, and the state is adding jobs at a slower pace than most states, with no net gain in overall employment in the last year.

Mississippi and Tennessee are the only states with a lower average weekly UI benefit payout than Louisiana. The typical UI benefit recipient in the state is paid just $210 a week, well below the $347 national average, and enough to cover only 23.1% of the average weekly working wage in the state.

Louisiana’s job market is also not particularly strong. Over the last year, the number of people working increased by just 0.2% in the state. Partially due to slower than average job growth and the state’s 4.9% unemployment rate, Louisiana has the worst economy of any state.

The average weekly UI benefit payout in Alaska of $261 is far lower than average and covers only about 25% of the average weekly working wage in the state. Nationwide, UI benefits cover 32.1% of average weekly wages. Alaska ranks as the worst state to be unemployed largely because it also ranks as the state where it is hardest to find full time work. Alaska reported negative employment growth in the last year, and the state’s 6.6% unemployment rate in 2018 is the highest among states. Due in part to the state’s weak job market, 44.4% of UI recipients exhaust their benefits before finding full-time work, nearly the largest share of any state and well above the 35.9% national exhaustion rate.