The U.S. economy suffered one of its most significant drops in GDP in 2020, as the COVID-19 pandemic halted spending, travel, and other economic activity. The economic hit was accompanied by high unemployment, with the jobless rate reaching 14.8% in April 2020, the highest level since the Great Depression. The unemployment rate was 8.1% for the full year – more than double what it was the year before.
As the pandemic has become more manageable and public health measures eased, the economy, and with it the labor market, began to recover, and the unemployment rate decreased to 5.3% in 2021. The unemployment rate dropped in every state – by less than 1 percentage point in some and by more than 6 percentage points in others.
To determine how the unemployment rate in each state changed from 2020 to 2021, 24/7 Wall St. reviewed data from the U.S. Bureau of Labor Statistics. States were ranked by the unemployment rate change.
Many of the states with the largest drop in unemployment from 2020 to 2021 had among the highest unemployment rates during the pandemic. These states often had economies that were highly reliant on tourism, and while those jobs were phased out as travel slowed, employers in the sector began hiring as travel resumed.
After dealing with the challenges of the pandemic, employers today are facing another challenge – the Great Resignation. This phenomenon has seen workers quit their jobs in search of new opportunities, better pay, and more benefits. Though quits are up in each state, they are much more common in some states than others. These are the states where the most people are quitting their jobs.
Click here to see the states with the largest drop in unemployment
50. Maine
> Chg. in unemployment rate: -0.4 percentage points
> 2021 unemployment rate: 4.6% (23rd lowest – tied)
> 2020 unemployment rate: 5.0% (4th lowest)
> Chg. in unemployed population: -5,238
[in-text-ad]
48. Maryland
> Chg. in unemployment rate: -0.9 percentage points
> 2021 unemployment rate: 5.8% (11th highest)
> 2020 unemployment rate: 6.7% (22nd lowest – tied)
> Chg. in unemployed population: -31,187
24/7 Wall St.
48. Iowa
> Chg. in unemployment rate: -0.9 percentage points
> 2021 unemployment rate: 4.2% (19th lowest)
> 2020 unemployment rate: 5.1% (5th lowest – tied)
> Chg. in unemployed population: -16,786
47. South Dakota
> Chg. in unemployment rate: -1.2 percentage points
> 2021 unemployment rate: 3.1% (3rd lowest)
> 2020 unemployment rate: 4.3% (2nd lowest)
> Chg. in unemployed population: -7,007
[in-text-ad-2]
45. New Mexico
> Chg. in unemployment rate: -1.3 percentage points
> 2021 unemployment rate: 6.8% (4th highest)
> 2020 unemployment rate: 8.1% (17th highest)
> Chg. in unemployed population: -15,386
45. Wyoming
> Chg. in unemployment rate: -1.3 percentage points
> 2021 unemployment rate: 4.5% (22nd lowest)
> 2020 unemployment rate: 5.8% (10th lowest – tied)
> Chg. in unemployed population: -4,307
[in-text-ad]
44. North Dakota
> Chg. in unemployment rate: -1.4 percentage points
> 2021 unemployment rate: 3.7% (12th lowest)
> 2020 unemployment rate: 5.1% (5th lowest – tied)
> Chg. in unemployed population: -5,901
24/7 Wall St.
42. Connecticut
> Chg. in unemployment rate: -1.5 percentage points
> 2021 unemployment rate: 6.3% (6th highest – tied)
> 2020 unemployment rate: 7.8% (19th highest)
> Chg. in unemployed population: -31,902
42. Colorado
> Chg. in unemployment rate: -1.5 percentage points
> 2021 unemployment rate: 5.4% (18th highest)
> 2020 unemployment rate: 6.9% (24th lowest)
> Chg. in unemployed population: -57,365
[in-text-ad-2]
41. Nebraska
> Chg. in unemployment rate: -1.6 percentage points
> 2021 unemployment rate: 2.5% (the lowest)
> 2020 unemployment rate: 4.1% (the lowest)
> Chg. in unemployed population: -17,416
39. Kentucky
> Chg. in unemployment rate: -1.7 percentage points
> 2021 unemployment rate: 4.7% (25th lowest)
> 2020 unemployment rate: 6.4% (19th lowest)
> Chg. in unemployed population: -39,037
[in-text-ad]
39. Missouri
> Chg. in unemployment rate: -1.7 percentage points
> 2021 unemployment rate: 4.4% (21st lowest)
> 2020 unemployment rate: 6.1% (13th lowest – tied)
> Chg. in unemployed population: -51,457
38. Alaska
> Chg. in unemployment rate: -1.8 percentage points
> 2021 unemployment rate: 6.4% (5th highest)
> 2020 unemployment rate: 8.2% (13th highest – tied)
> Chg. in unemployed population: -4,525
37. Idaho
> Chg. in unemployment rate: -1.9 percentage points
> 2021 unemployment rate: 3.6% (10th lowest – tied)
> 2020 unemployment rate: 5.5% (7th lowest)
> Chg. in unemployed population: -15,058
[in-text-ad-2]
34. Texas
> Chg. in unemployment rate: -2.0 percentage points
> 2021 unemployment rate: 5.7% (12th highest – tied)
> 2020 unemployment rate: 7.7% (20th highest – tied)
> Chg. in unemployed population: -260,572
34. South Carolina
> Chg. in unemployment rate: -2.0 percentage points
> 2021 unemployment rate: 4.0% (17th lowest – tied)
> 2020 unemployment rate: 6.0% (12th lowest)
> Chg. in unemployed population: -52,630
[in-text-ad]
34. Utah
> Chg. in unemployment rate: -2.0 percentage points
> 2021 unemployment rate: 2.7% (2nd lowest)
> 2020 unemployment rate: 4.7% (3rd lowest)
> Chg. in unemployed population: -31,089
33. Arkansas
> Chg. in unemployment rate: -2.1 percentage points
> 2021 unemployment rate: 4.0% (17th lowest – tied)
> 2020 unemployment rate: 6.1% (13th lowest – tied)
> Chg. in unemployed population: -28,316
32. Vermont
> Chg. in unemployment rate: -2.2 percentage points
> 2021 unemployment rate: 3.4% (5th lowest – tied)
> 2020 unemployment rate: 5.6% (8th lowest)
> Chg. in unemployed population: -7,138
[in-text-ad-2]
28. Mississippi
> Chg. in unemployment rate: -2.3 percentage points
> 2021 unemployment rate: 5.6% (15th highest – tied)
> 2020 unemployment rate: 7.9% (18th highest)
> Chg. in unemployed population: -31,963
28. Delaware
> Chg. in unemployment rate: -2.3 percentage points
> 2021 unemployment rate: 5.3% (19th highest)
> 2020 unemployment rate: 7.6% (22nd highest – tied)
> Chg. in unemployed population: -11,345
[in-text-ad]
28. North Carolina
> Chg. in unemployment rate: -2.3 percentage points
> 2021 unemployment rate: 4.8% (25th highest)
> 2020 unemployment rate: 7.1% (25th lowest)
> Chg. in unemployed population: -124,978
28. Virginia
> Chg. in unemployment rate: -2.3 percentage points
> 2021 unemployment rate: 3.9% (15th lowest – tied)
> 2020 unemployment rate: 6.2% (15th lowest – tied)
> Chg. in unemployed population: -104,554
25. Oregon
> Chg. in unemployment rate: -2.4 percentage points
> 2021 unemployment rate: 5.2% (20th highest – tied)
> 2020 unemployment rate: 7.6% (22nd highest – tied)
> Chg. in unemployed population: -47,250
[in-text-ad-2]
25. Oklahoma
> Chg. in unemployment rate: -2.4 percentage points
> 2021 unemployment rate: 3.8% (13th lowest – tied)
> 2020 unemployment rate: 6.2% (15th lowest – tied)
> Chg. in unemployed population: -42,407
25. Montana
> Chg. in unemployment rate: -2.4 percentage points
> 2021 unemployment rate: 3.4% (5th lowest – tied)
> 2020 unemployment rate: 5.8% (10th lowest – tied)
> Chg. in unemployed population: -13,247
[in-text-ad]
23. Wisconsin
> Chg. in unemployment rate: -2.5 percentage points
> 2021 unemployment rate: 3.8% (13th lowest – tied)
> 2020 unemployment rate: 6.3% (17th lowest – tied)
> Chg. in unemployed population: -74,393
23. Kansas
> Chg. in unemployment rate: -2.5 percentage points
> 2021 unemployment rate: 3.2% (4th lowest)
> 2020 unemployment rate: 5.7% (9th lowest)
> Chg. in unemployed population: -39,666
22. Georgia
> Chg. in unemployment rate: -2.6 percentage points
> 2021 unemployment rate: 3.9% (15th lowest – tied)
> 2020 unemployment rate: 6.5% (20th lowest – tied)
> Chg. in unemployed population: -127,727
[in-text-ad-2]
20. Pennsylvania
> Chg. in unemployment rate: -2.8 percentage points
> 2021 unemployment rate: 6.3% (6th highest – tied)
> 2020 unemployment rate: 9.1% (10th highest)
> Chg. in unemployed population: -173,184
20. Arizona
> Chg. in unemployment rate: -2.8 percentage points
> 2021 unemployment rate: 4.9% (24th highest)
> 2020 unemployment rate: 7.7% (20th highest – tied)
> Chg. in unemployed population: -109,964
[in-text-ad]
18. California
> Chg. in unemployment rate: -2.9 percentage points
> 2021 unemployment rate: 7.3% (the highest)
> 2020 unemployment rate: 10.2% (3rd highest)
> Chg. in unemployed population: -526,839
18. Minnesota
> Chg. in unemployment rate: -2.9 percentage points
> 2021 unemployment rate: 3.4% (5th lowest – tied)
> 2020 unemployment rate: 6.3% (17th lowest – tied)
> Chg. in unemployed population: -88,173
17. New York
> Chg. in unemployment rate: -3.0 percentage points
> 2021 unemployment rate: 6.9% (3rd highest)
> 2020 unemployment rate: 9.9% (5th highest)
> Chg. in unemployed population: -272,987
[in-text-ad-2]
13. Illinois
> Chg. in unemployment rate: -3.1 percentage points
> 2021 unemployment rate: 6.1% (9th highest)
> 2020 unemployment rate: 9.2% (9th highest)
> Chg. in unemployed population: -208,674
13. Ohio
> Chg. in unemployment rate: -3.1 percentage points
> 2021 unemployment rate: 5.1% (22nd highest)
> 2020 unemployment rate: 8.2% (13th highest – tied)
> Chg. in unemployed population: -173,799
[in-text-ad]
13. Tennessee
> Chg. in unemployment rate: -3.1 percentage points
> 2021 unemployment rate: 4.3% (20th lowest)
> 2020 unemployment rate: 7.4% (24th highest)
> Chg. in unemployed population: -102,829
13. Alabama
> Chg. in unemployment rate: -3.1 percentage points
> 2021 unemployment rate: 3.4% (5th lowest – tied)
> 2020 unemployment rate: 6.5% (20th lowest – tied)
> Chg. in unemployed population: -53,784
9. New Jersey
> Chg. in unemployment rate: -3.2 percentage points
> 2021 unemployment rate: 6.3% (6th highest – tied)
> 2020 unemployment rate: 9.5% (6th highest)
> Chg. in unemployed population: -144,216
[in-text-ad-2]
9. Louisiana
> Chg. in unemployment rate: -3.2 percentage points
> 2021 unemployment rate: 5.5% (17th highest)
> 2020 unemployment rate: 8.7% (11th highest)
> Chg. in unemployed population: -58,316
9. West Virginia
> Chg. in unemployment rate: -3.2 percentage points
> 2021 unemployment rate: 5.0% (23rd highest)
> 2020 unemployment rate: 8.2% (13th highest – tied)
> Chg. in unemployed population: -26,439
[in-text-ad]
9. New Hampshire
> Chg. in unemployment rate: -3.2 percentage points
> 2021 unemployment rate: 3.5% (9th lowest)
> 2020 unemployment rate: 6.7% (22nd lowest – tied)
> Chg. in unemployed population: -24,433
8. Washington
> Chg. in unemployment rate: -3.3 percentage points
> 2021 unemployment rate: 5.2% (20th highest – tied)
> 2020 unemployment rate: 8.5% (12th highest)
> Chg. in unemployed population: -124,312
5. Rhode Island
> Chg. in unemployment rate: -3.6 percentage points
> 2021 unemployment rate: 5.6% (15th highest – tied)
> 2020 unemployment rate: 9.2% (8th highest)
> Chg. in unemployed population: -18,770
[in-text-ad-2]
5. Florida
> Chg. in unemployment rate: -3.6 percentage points
> 2021 unemployment rate: 4.6% (23rd lowest – tied)
> 2020 unemployment rate: 8.2% (13th highest)
> Chg. in unemployed population: -311,780
5. Indiana
> Chg. in unemployment rate: -3.6 percentage points
> 2021 unemployment rate: 3.6% (10th lowest – tied)
> 2020 unemployment rate: 7.2% (25th highest)
> Chg. in unemployed population: -117,646
[in-text-ad]
4. Massachusetts
> Chg. in unemployment rate: -3.7 percentage points
> 2021 unemployment rate: 5.7% (12th highest – tied)
> 2020 unemployment rate: 9.4% (7th highest)
> Chg. in unemployed population: -108,803
3. Michigan
> Chg. in unemployment rate: -4.1 percentage points
> 2021 unemployment rate: 5.9% (10th highest)
> 2020 unemployment rate: 10.0% (4th highest)
> Chg. in unemployed population: -197,656
1. Nevada
> Chg. in unemployment rate: -6.3 percentage points
> 2021 unemployment rate: 7.2% (2nd highest)
> 2020 unemployment rate: 13.5% (the highest)
> Chg. in unemployed population: -87,634
[in-text-ad-2]
1. Hawaii
> Chg. in unemployment rate: -6.3 percentage points
> 2021 unemployment rate: 5.7% (12th highest – tied)
> 2020 unemployment rate: 12.0% (2nd highest)
> Chg. in unemployed population: -37,169
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
