In May 2020, the U.S. was digging out from its COVID-19 recession, the country’s shortest economic contraction on record. Thanks to lockdown and other public health measures aimed at combating the coronavirus spread, the national unemployment rate struck an all-time high of 14.7% a month earlier, and it remained above 10% for most of that summer.
Since then, the unemployment rate has edged back down to a near-record low of 3.6% in May, an 11.1 points decline in the country’s joblessness compared to May 2020, and a 2.2 points drop since May of last year.
To identify the states where unemployment has improved the most, 24/7 Wall St. created a weighted index of six measures of labor designed to capture change in unemployment from various points before the pandemic and during the pandemic through to today. States were ranked by how well they bounced back.
The most recent, May, state jobless rate ranges from 2% in Minnesota to 5.1% in New Mexico. The one-year decline in the unemployed population ranges from 11.5% in Kentucky to 52.6% in Arizona, while the two-year decline in the number of unemployed people ranges from 41.5% in New Mexico to 85.6% in New Hampshire.
New Hampshire also experienced the biggest two-year decline in the unemployment rate from 15.4% to 2.1%. Four other states also saw the number of their unemployed population decline by more than 80% over the past two years.
These large reductions in the number of people who cannot find jobs reflect a national labor market that is returning to pre-pandemic levels – and more. The current high number of job openings, people who are quitting their jobs, and the relatively low unemployment rate suggest a tight labor market. (This is the state where the most people are quitting their jobs.)
At the same time, there are still millions of people unable to find work, either because of mismatched skills, mismatched offers and needs (part-time offered when full-time is needed, for example), or other issues. As another recession looms on the horizon, the labor market could drastically change as well. (These are careers with the best job security.)
Here are the states whose unemployment rates are bouncing back most
50. New Mexico
> May 2022 unemployment rate: 5.1%
> May 2021 unemployment rate: 7.9%
> May 2020 unemployment rate: 9.1%
> 1-yr. change in no. of unemployed: -36.1% — 18th largest improvement (27,383 fewer people)
> 2-yr. change in no. of unemployed: -41.5% — the smallest improvement (34,366 fewer people)
[in-text-ad]
49. Illinois
> May 2022 unemployment rate: 4.6%
> May 2021 unemployment rate: 7.1%
> May 2020 unemployment rate: 15.3%
> 1-yr. change in no. of unemployed: -31.9% — 24th smallest improvement (139,594 fewer people)
> 2-yr. change in no. of unemployed: -69.2% — 20th smallest improvement (669,278 fewer people)
48. Nevada
> May 2022 unemployment rate: 4.9%
> May 2021 unemployment rate: 7.8%
> May 2020 unemployment rate: 25.3%
> 1-yr. change in no. of unemployed: -39.5% — 13th largest improvement (48,444 fewer people)
> 2-yr. change in no. of unemployed: -78.8% — 8th largest improvement (275,374 fewer people)
47. Pennsylvania
> May 2022 unemployment rate: 4.6%
> May 2021 unemployment rate: 7.0%
> May 2020 unemployment rate: 13.4%
> 1-yr. change in no. of unemployed: -32.8% — 23rd largest improvement (145,368 fewer people)
> 2-yr. change in no. of unemployed: -66.0% — 14th smallest improvement (576,570 fewer people)
[in-text-ad-2]
46. Delaware
> May 2022 unemployment rate: 4.5%
> May 2021 unemployment rate: 5.9%
> May 2020 unemployment rate: 15.9%
> 1-yr. change in no. of unemployed: -21.0% — 9th smallest improvement (6,012 fewer people)
> 2-yr. change in no. of unemployed: -69.8% — 21st smallest improvement (52,293 fewer people)
45. Connecticut
> May 2022 unemployment rate: 4.2%
> May 2021 unemployment rate: 8.1%
> May 2020 unemployment rate: 9.6%
> 1-yr. change in no. of unemployed: -44.9% — 6th largest improvement (64,050 fewer people)
> 2-yr. change in no. of unemployed: -53.8% — 2nd smallest improvement (91,575 fewer people)
[in-text-ad]
44. Hawaii
> May 2022 unemployment rate: 4.2%
> May 2021 unemployment rate: 8.0%
> May 2020 unemployment rate: 23.5%
> 1-yr. change in no. of unemployed: -45.7% — 4th largest improvement (23,821 fewer people)
> 2-yr. change in no. of unemployed: -80.8% — 4th largest improvement (119,109 fewer people)
24/7 Wall St.
43. Alaska
> May 2022 unemployment rate: 4.7%
> May 2021 unemployment rate: 6.6%
> May 2020 unemployment rate: 12.7%
> 1-yr. change in no. of unemployed: -27.1% — 18th smallest improvement (6,289 fewer people)
> 2-yr. change in no. of unemployed: -60.1% — 4th smallest improvement (25,451 fewer people)
42. Michigan
> May 2022 unemployment rate: 4.3%
> May 2021 unemployment rate: 5.0%
> May 2020 unemployment rate: 21.3%
> 1-yr. change in no. of unemployed: -11.8% — 2nd smallest improvement (27,751 fewer people)
> 2-yr. change in no. of unemployed: -79.5% — 7th largest improvement (805,476 fewer people)
[in-text-ad-2]
41. California
> May 2022 unemployment rate: 4.3%
> May 2021 unemployment rate: 7.7%
> May 2020 unemployment rate: 16.4%
> 1-yr. change in no. of unemployed: -42.2% — 12th largest improvement (610,831 fewer people)
> 2-yr. change in no. of unemployed: -72.6% — 21st largest improvement (2,207,998 fewer people)
40. Texas
> May 2022 unemployment rate: 4.2%
> May 2021 unemployment rate: 6.6%
> May 2020 unemployment rate: 13.0%
> 1-yr. change in no. of unemployed: -34.1% — 19th largest improvement (314,421 fewer people)
> 2-yr. change in no. of unemployed: -65.3% — 11th smallest improvement (1,144,956 fewer people)
[in-text-ad]
39. Massachusetts
> May 2022 unemployment rate: 3.9%
> May 2021 unemployment rate: 5.0%
> May 2020 unemployment rate: 16.6%
> 1-yr. change in no. of unemployed: -20.3% — 7th smallest improvement (37,326 fewer people)
> 2-yr. change in no. of unemployed: -75.1% — 15th largest improvement (440,259 fewer people)
24/7 Wall St.
38. New York
> May 2022 unemployment rate: 4.4%
> May 2021 unemployment rate: 7.8%
> May 2020 unemployment rate: 14.5%
> 1-yr. change in no. of unemployed: -43.8% — 7th largest improvement (323,696 fewer people)
> 2-yr. change in no. of unemployed: -68.5% — 18th smallest improvement (903,825 fewer people)
37. Ohio
> May 2022 unemployment rate: 3.9%
> May 2021 unemployment rate: 5.0%
> May 2020 unemployment rate: 13.9%
> 1-yr. change in no. of unemployed: -18.7% — 6th smallest improvement (51,925 fewer people)
> 2-yr. change in no. of unemployed: -71.6% — 24th largest improvement (570,881 fewer people)
[in-text-ad-2]
36. Maryland
> May 2022 unemployment rate: 4.0%
> May 2021 unemployment rate: 6.1%
> May 2020 unemployment rate: 10.0%
> 1-yr. change in no. of unemployed: -33.4% — 21st largest improvement (63,984 fewer people)
> 2-yr. change in no. of unemployed: -58.9% — 3rd smallest improvement (182,636 fewer people)
35. New Jersey
> May 2022 unemployment rate: 3.9%
> May 2021 unemployment rate: 7.2%
> May 2020 unemployment rate: 15.4%
> 1-yr. change in no. of unemployed: -43.0% — 9th largest improvement (137,039 fewer people)
> 2-yr. change in no. of unemployed: -73.9% — 17th largest improvement (513,993 fewer people)
[in-text-ad]
34. Washington
> May 2022 unemployment rate: 3.9%
> May 2021 unemployment rate: 5.2%
> May 2020 unemployment rate: 15.1%
> 1-yr. change in no. of unemployed: -21.8% — 10th smallest improvement (44,271 fewer people)
> 2-yr. change in no. of unemployed: -73.2% — 19th largest improvement (434,981 fewer people)
33. Kentucky
> May 2022 unemployment rate: 3.8%
> May 2021 unemployment rate: 4.5%
> May 2020 unemployment rate: 10.9%
> 1-yr. change in no. of unemployed: -11.5% — the smallest improvement (10,235 fewer people)
> 2-yr. change in no. of unemployed: -64.2% — 9th smallest improvement (141,421 fewer people)
32. Colorado
> May 2022 unemployment rate: 3.5%
> May 2021 unemployment rate: 6.2%
> May 2020 unemployment rate: 10.2%
> 1-yr. change in no. of unemployed: -42.4% — 11th largest improvement (84,526 fewer people)
> 2-yr. change in no. of unemployed: -63.4% — 6th smallest improvement (198,986 fewer people)
[in-text-ad-2]
31. South Carolina
> May 2022 unemployment rate: 3.3%
> May 2021 unemployment rate: 4.6%
> May 2020 unemployment rate: 12.4%
> 1-yr. change in no. of unemployed: -28.3% — 20th smallest improvement (31,275 fewer people)
> 2-yr. change in no. of unemployed: -73.6% — 18th largest improvement (220,506 fewer people)
30. Mississippi
> May 2022 unemployment rate: 4.0%
> May 2021 unemployment rate: 6.1%
> May 2020 unemployment rate: 10.5%
> 1-yr. change in no. of unemployed: -36.4% — 16th largest improvement (28,657 fewer people)
> 2-yr. change in no. of unemployed: -60.4% — 5th smallest improvement (76,500 fewer people)
[in-text-ad]
29. Oregon
> May 2022 unemployment rate: 3.6%
> May 2021 unemployment rate: 5.8%
> May 2020 unemployment rate: 14.3%
> 1-yr. change in no. of unemployed: -37.9% — 14th largest improvement (48,010 fewer people)
> 2-yr. change in no. of unemployed: -74.1% — 16th largest improvement (224,853 fewer people)
24/7 Wall St.
28. Louisiana
> May 2022 unemployment rate: 4.0%
> May 2021 unemployment rate: 7.1%
> May 2020 unemployment rate: 14.2%
> 1-yr. change in no. of unemployed: -43.1% — 8th largest improvement (63,214 fewer people)
> 2-yr. change in no. of unemployed: -71.2% — 25th smallest improvement (206,012 fewer people)
27. Maine
> May 2022 unemployment rate: 3.2%
> May 2021 unemployment rate: 4.8%
> May 2020 unemployment rate: 9.4%
> 1-yr. change in no. of unemployed: -33.6% — 20th largest improvement (10,885 fewer people)
> 2-yr. change in no. of unemployed: -65.6% — 12th smallest improvement (41,155 fewer people)
[in-text-ad-2]
26. Arkansas
> May 2022 unemployment rate: 3.2%
> May 2021 unemployment rate: 4.4%
> May 2020 unemployment rate: 9.6%
> 1-yr. change in no. of unemployed: -28.0% — 19th smallest improvement (16,592 fewer people)
> 2-yr. change in no. of unemployed: -66.9% — 15th smallest improvement (86,489 fewer people)
25. Missouri
> May 2022 unemployment rate: 3.1%
> May 2021 unemployment rate: 4.2%
> May 2020 unemployment rate: 10.1%
> 1-yr. change in no. of unemployed: -25.3% — 14th smallest improvement (32,591 fewer people)
> 2-yr. change in no. of unemployed: -68.2% — 17th smallest improvement (207,201 fewer people)
[in-text-ad]
24. Tennessee
> May 2022 unemployment rate: 3.3%
> May 2021 unemployment rate: 5.0%
> May 2020 unemployment rate: 11.0%
> 1-yr. change in no. of unemployed: -32.2% — 25th largest improvement (53,096 fewer people)
> 2-yr. change in no. of unemployed: -69.2% — 19th smallest improvement (251,637 fewer people)
24/7 Wall St.
23. North Carolina
> May 2022 unemployment rate: 3.4%
> May 2021 unemployment rate: 4.8%
> May 2020 unemployment rate: 12.8%
> 1-yr. change in no. of unemployed: -28.8% — 21st smallest improvement (69,088 fewer people)
> 2-yr. change in no. of unemployed: -72.2% — 23rd largest improvement (444,542 fewer people)
22. Wyoming
> May 2022 unemployment rate: 3.2%
> May 2021 unemployment rate: 5.4%
> May 2020 unemployment rate: 8.8%
> 1-yr. change in no. of unemployed: -42.6% — 10th largest improvement (6,858 fewer people)
> 2-yr. change in no. of unemployed: -64.2% — 10th smallest improvement (16,562 fewer people)
[in-text-ad-2]
21. Virginia
> May 2022 unemployment rate: 3.0%
> May 2021 unemployment rate: 4.5%
> May 2020 unemployment rate: 9.0%
> 1-yr. change in no. of unemployed: -31.9% — 25th smallest improvement (60,406 fewer people)
> 2-yr. change in no. of unemployed: -66.9% — 16th smallest improvement (260,705 fewer people)
20. Arizona
> May 2022 unemployment rate: 3.2%
> May 2021 unemployment rate: 6.7%
> May 2020 unemployment rate: 9.0%
> 1-yr. change in no. of unemployed: -52.6% — the largest improvement (128,048 fewer people)
> 2-yr. change in no. of unemployed: -63.9% — 8th smallest improvement (203,797 fewer people)
[in-text-ad]
19. Georgia
> May 2022 unemployment rate: 3.0%
> May 2021 unemployment rate: 4.1%
> May 2020 unemployment rate: 9.4%
> 1-yr. change in no. of unemployed: -26.0% — 16th smallest improvement (55,496 fewer people)
> 2-yr. change in no. of unemployed: -65.8% — 13th smallest improvement (302,862 fewer people)
18. West Virginia
> May 2022 unemployment rate: 3.5%
> May 2021 unemployment rate: 5.5%
> May 2020 unemployment rate: 12.9%
> 1-yr. change in no. of unemployed: -36.2% — 17th largest improvement (15,825 fewer people)
> 2-yr. change in no. of unemployed: -72.3% — 22nd largest improvement (72,844 fewer people)
17. Florida
> May 2022 unemployment rate: 3.0%
> May 2021 unemployment rate: 4.9%
> May 2020 unemployment rate: 13.7%
> 1-yr. change in no. of unemployed: -37.9% — 15th largest improvement (190,576 fewer people)
> 2-yr. change in no. of unemployed: -76.3% — 11th largest improvement (1,006,497 fewer people)
[in-text-ad-2]
16. Wisconsin
> May 2022 unemployment rate: 2.9%
> May 2021 unemployment rate: 3.9%
> May 2020 unemployment rate: 12.1%
> 1-yr. change in no. of unemployed: -25.1% — 12th smallest improvement (30,182 fewer people)
> 2-yr. change in no. of unemployed: -76.1% — 12th largest improvement (286,758 fewer people)
15. North Dakota
> May 2022 unemployment rate: 2.6%
> May 2021 unemployment rate: 4.0%
> May 2020 unemployment rate: 9.1%
> 1-yr. change in no. of unemployed: -32.7% — 24th largest improvement (5,224 fewer people)
> 2-yr. change in no. of unemployed: -70.6% — 23rd smallest improvement (25,784 fewer people)
[in-text-ad]
14. Iowa
> May 2022 unemployment rate: 2.7%
> May 2021 unemployment rate: 3.9%
> May 2020 unemployment rate: 10.2%
> 1-yr. change in no. of unemployed: -26.9% — 17th smallest improvement (17,231 fewer people)
> 2-yr. change in no. of unemployed: -73.0% — 20th largest improvement (126,200 fewer people)
13. Idaho
> May 2022 unemployment rate: 2.5%
> May 2021 unemployment rate: 3.0%
> May 2020 unemployment rate: 9.0%
> 1-yr. change in no. of unemployed: -13.6% — 3rd smallest improvement (3,719 fewer people)
> 2-yr. change in no. of unemployed: -70.2% — 22nd smallest improvement (55,623 fewer people)
12. Alabama
> May 2022 unemployment rate: 2.7%
> May 2021 unemployment rate: 3.4%
> May 2020 unemployment rate: 9.6%
> 1-yr. change in no. of unemployed: -18.3% — 5th smallest improvement (13,777 fewer people)
> 2-yr. change in no. of unemployed: -71.5% — 25th largest improvement (154,422 fewer people)
[in-text-ad-2]
11. Oklahoma
> May 2022 unemployment rate: 2.8%
> May 2021 unemployment rate: 3.9%
> May 2020 unemployment rate: 12.6%
> 1-yr. change in no. of unemployed: -28.8% — 22nd smallest improvement (21,030 fewer people)
> 2-yr. change in no. of unemployed: -77.4% — 9th largest improvement (178,232 fewer people)
10. Montana
> May 2022 unemployment rate: 2.4%
> May 2021 unemployment rate: 3.6%
> May 2020 unemployment rate: 9.0%
> 1-yr. change in no. of unemployed: -29.2% — 23rd smallest improvement (5,680 fewer people)
> 2-yr. change in no. of unemployed: -70.9% — 24th smallest improvement (33,520 fewer people)
[in-text-ad]
9. South Dakota
> May 2022 unemployment rate: 2.3%
> May 2021 unemployment rate: 2.8%
> May 2020 unemployment rate: 9.4%
> 1-yr. change in no. of unemployed: -17.4% — 4th smallest improvement (2,257 fewer people)
> 2-yr. change in no. of unemployed: -75.4% — 13th largest improvement (32,944 fewer people)
8. Rhode Island
> May 2022 unemployment rate: 2.9%
> May 2021 unemployment rate: 6.0%
> May 2020 unemployment rate: 16.4%
> 1-yr. change in no. of unemployed: -49.5% — 2nd largest improvement (16,138 fewer people)
> 2-yr. change in no. of unemployed: -80.8% — 5th largest improvement (69,289 fewer people)
7. Vermont
> May 2022 unemployment rate: 2.3%
> May 2021 unemployment rate: 3.0%
> May 2020 unemployment rate: 12.8%
> 1-yr. change in no. of unemployed: -20.5% — 8th smallest improvement (1,952 fewer people)
> 2-yr. change in no. of unemployed: -82.9% — 2nd largest improvement (36,590 fewer people)
[in-text-ad-2]
6. Kansas
> May 2022 unemployment rate: 2.3%
> May 2021 unemployment rate: 3.5%
> May 2020 unemployment rate: 10.0%
> 1-yr. change in no. of unemployed: -32.9% — 22nd largest improvement (17,372 fewer people)
> 2-yr. change in no. of unemployed: -76.6% — 10th largest improvement (115,934 fewer people)
5. Utah
> May 2022 unemployment rate: 2.0%
> May 2021 unemployment rate: 2.7%
> May 2020 unemployment rate: 8.6%
> 1-yr. change in no. of unemployed: -23.4% — 11th smallest improvement (10,400 fewer people)
> 2-yr. change in no. of unemployed: -75.3% — 14th largest improvement (103,750 fewer people)
[in-text-ad]
4. Nebraska
> May 2022 unemployment rate: 1.9%
> May 2021 unemployment rate: 2.6%
> May 2020 unemployment rate: 5.3%
> 1-yr. change in no. of unemployed: -25.8% — 15th smallest improvement (6,907 fewer people)
> 2-yr. change in no. of unemployed: -63.7% — 7th smallest improvement (34,906 fewer people)
3. New Hampshire
> May 2022 unemployment rate: 2.1%
> May 2021 unemployment rate: 2.9%
> May 2020 unemployment rate: 15.4%
> 1-yr. change in no. of unemployed: -25.2% — 13th smallest improvement (5,489 fewer people)
> 2-yr. change in no. of unemployed: -85.6% — the largest improvement (96,739 fewer people)
2. Indiana
> May 2022 unemployment rate: 2.2%
> May 2021 unemployment rate: 4.0%
> May 2020 unemployment rate: 12.3%
> 1-yr. change in no. of unemployed: -45.3% — 5th largest improvement (61,267 fewer people)
> 2-yr. change in no. of unemployed: -81.9% — 3rd largest improvement (335,503 fewer people)
[in-text-ad-2]
1. Minnesota
> May 2022 unemployment rate: 2.0%
> May 2021 unemployment rate: 4.0%
> May 2020 unemployment rate: 9.9%
> 1-yr. change in no. of unemployed: -49.2% — 3rd largest improvement (59,571 fewer people)
> 2-yr. change in no. of unemployed: -79.7% — 6th largest improvement (241,415 fewer people)
Methodology
To identify the states where unemployment has improved the most, 24/7 Wall St. created a weighted index of six measures designed to capture change in unemployment from various points before the pandemic and during the pandemic through to today.
The first five measures were: 1) change in the number of unemployed residents from May 2019 to May 2022; 2) change in the number of unemployed residents from January 2020 to May 2022; 3) change in the number of unemployed residents from May 2020 to May 2022; 4) change in the number of unemployed residents from May 2021 to May 2022; and 5) change in monthly unemployment claims from April 2021 to April 2022. Each of these measures accounts for 10% of the overall index.
The sixth, which accounts for 50% of the total index score, is the May 2022 unemployment rate, the most recent available.
The number of unemployed people and unemployment rates are seasonally adjusted figures from the Bureau of Labor Statistics. Monthly jobless claims are from the U.S. Department of Labor Employment & Training Administration and are not seasonally adjusted.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
