Which States Have the Highest Unemployment?

The national unemployment rate gives you one number. It does not give you 4.5 percentage points of variation underneath it. District of Columbia sits at 6.7%. Hawaii sits at 2.2%. Same economy, same month, different country.

California (5.5%) and New Jersey (5.4%) round out the highest. The national average is 4.1% with a median of 4.3%. 27 states currently exceed that average. What's interesting is how the unemployment map overlaps with other forms of household distress. American Default Research publishes state-level distress scores that capture this intersection. The American Distress Index reads 64.4 (Elevated) nationally, but the state-level picture is where the pattern gets sharper.

At a Glance

6.7% Highest: District of Columbia 2026-01 · National avg: 4.1%
2.2% Lowest: Hawaii 2026-01 · Median: 4.3%
4.5pp Range: DC to HI 2026-01
27 States above national average 2026-01
+1.3pp Largest YoY increase: Delaware 2024 → 2025
-0.5pp Largest YoY decrease: Colorado 2024 → 2025

The American Distress Index reads 64.4 (Elevated). State unemployment feeds the ADI through two channels: the national-level Labor Market component (8.4% of the composite ADI) and the state-level Labor Market component (15% of each State ADI score). States with persistently elevated unemployment also tend to show higher delinquency rates, higher credit card default rates, and elevated SNAP enrollment, creating compounding distress. The State ADI rankings analysis maps how these intersecting pressures cluster geographically.

Which 15 States Have the Highest Unemployment?

District of Columbia stands at 6.7%. That's 1.6x the national average. The top 15 cluster in two familiar geographies. Large service-sector states with high cost-of-living coastal markets. And post-industrial states where the labor market recovery was always uneven to begin with. The pattern repeats across multiple cycles. The states that lead into downturns are often the ones that never fully recovered from the last one.

Unemployment Rate by State — Top 15 (2026-01)

BLS Local Area Unemployment Statistics (LAUS). Seasonally adjusted annual averages.

Does Higher Unemployment Mean Higher Financial Distress?

This is the question that matters more than the ranking. A state can have moderate unemployment and still score high on household distress, because delinquency, SNAP enrollment, and safety net gaps all carry weight independently. But the scatter plot below makes one thing clear. When unemployment is high and composite distress is high, the compounding effect is visible. The upper-right quadrant of this chart is where labor market weakness meets pre-existing leverage. Those states also tend to have different foreclosure timelines and legal protections, which shapes how quickly economic stress converts to housing loss.

Unemployment Rate vs. State ADI Score (All 51 Jurisdictions)

BLS LAUS (2026-01) × American Default Research State ADI composite.

How Is Unemployment Trending Month to Month?

Monthly unemployment rates since January 2022 for the five highest-unemployment states alongside the national average. The post-COVID recovery brought most states below 4% by mid-2022, but a subset has drifted back upward — diverging from the national trajectory.

Monthly Unemployment Rate: National Average vs. Top 5 States (2022–2025)

BLS LAUS. Seasonally adjusted monthly rates.

How Does Unemployment Relate to Food Assistance?

Here's where it gets interesting. SNAP enrollment and unemployment should correlate, and they do. But not cleanly. Some states with moderate unemployment have very high SNAP enrollment. That's not job loss. That's low wages and high cost burdens creating the same downstream pressure through a different mechanism. The states in the upper-right quadrant of this chart are the ones facing both at once. Weak labor markets and widespread food assistance reliance. That combination is the clearest signal of deep, structural household distress.

Unemployment Rate vs. SNAP Enrollment Rate (All 51 Jurisdictions)

BLS LAUS (2026-01) × USDA FNS SNAP participation data.

State Rankings

The top 10 and bottom 10 states by unemployment rate, plus the biggest year-over-year movers.

Highest Unemployment

#StateRate
1 District of Columbia 6.7%
2 California 5.5%
3 New Jersey 5.4%
4 Delaware 5.3%
5 Oregon 5.3%
6 Nevada 5.2%
7 Michigan 5.0%
8 Washington 4.9%
9 Alaska 4.8%
10 South Carolina 4.8%

Lowest Unemployment

#StateRate
1 Hawaii 2.2%
2 South Dakota 2.2%
3 North Dakota 2.6%
4 Alabama 2.7%
5 Vermont 2.7%
6 Nebraska 3.0%
7 New Hampshire 3.2%
8 Wisconsin 3.2%
9 Maine 3.3%
10 Iowa 3.4%

Biggest YoY Increase

#StateChange
1 Delaware +1.3pp
2 District of Columbia +1.1pp
3 Minnesota +0.9pp
4 Maryland +0.8pp
5 Connecticut +0.8pp
6 Florida +0.8pp
7 Montana +0.7pp
8 West Virginia +0.7pp
9 Massachusetts +0.6pp
10 New Jersey +0.6pp

Biggest YoY Decrease

#StateChange
1 Colorado -0.5pp
2 Indiana -0.5pp
3 Kentucky -0.5pp
4 Alabama -0.4pp
5 Hawaii -0.4pp
6 Ohio -0.4pp
7 Michigan -0.3pp
8 Louisiana -0.2pp
9 Nevada -0.2pp
10 Idaho -0.1pp

All States: Unemployment, SNAP, and Distress

The full dataset for all 50 states and DC. Unemployment rate from BLS LAUS, SNAP enrollment rate from USDA FNS, and composite State ADI score from American Default Research. States with unemployment above the national average are highlighted in red.

State Unemp. % YoY Chg SNAP % State ADI ADI Zone
Alabama 2.7 -0.4 13.8 58.5 Elevated
Alaska 4.8 +0.3 8.9 40.5 Healthy
Arizona 4.4 +0.3 8.7 52.4 Normal
Arkansas 4.3 +0.6 7.7 54.4 Elevated
California 5.5 +0.1 13.5 59.2 Elevated
Colorado 3.8 -0.5 9.9 45.8 Normal
Connecticut 4.3 +0.8 9.3 45.0 Healthy
Delaware 5.3 +1.3 11.7 62.4 Elevated
District of Columbia 6.7 +1.1 20.6 75.7 Serious
Florida 4.3 +0.8 11.4 63.1 Elevated
Georgia 3.5 +0.1 16.7 64.4 Elevated
Hawaii 2.2 -0.4 11.5 37.9 Healthy
Idaho 3.6 -0.1 6.0 38.1 Healthy
Illinois 4.7 -0.1 14.7 57.9 Elevated
Indiana 3.5 -0.5 8.1 48.9 Normal
Iowa 3.4 -0.1 7.9 40.8 Healthy
Kansas 3.8 0.0 6.0 43.9 Healthy
Kentucky 4.4 -0.5 13.0 55.7 Elevated
Louisiana 4.2 -0.2 16.6 65.7 Elevated
Maine 3.3 0.0 11.3 39.5 Healthy
Maryland 4.2 +0.8 10.0 56.0 Elevated
Massachusetts 4.7 +0.6 14.3 45.0 Normal
Michigan 5.0 -0.3 14.7 55.8 Elevated
Minnesota 4.2 +0.9 7.6 42.1 Healthy
Mississippi 3.7 -0.1 11.6 62.3 Elevated
Missouri 3.9 +0.1 10.3 47.4 Normal
Montana 3.6 +0.7 6.5 37.3 Healthy
Nebraska 3.0 +0.1 7.1 38.0 Healthy
Nevada 5.2 -0.2 13.6 66.0 Elevated
New Hampshire 3.2 +0.2 5.3 38.2 Healthy
New Jersey 5.4 +0.6 8.4 52.7 Normal
New Mexico 4.3 +0.1 21.2 55.7 Elevated
New York 4.6 +0.5 14.6 56.4 Elevated
North Carolina 3.8 0.0 12.0 48.1 Normal
North Dakota 2.6 +0.1 7.0 34.3 Healthy
Ohio 4.4 -0.4 11.8 54.5 Elevated
Oklahoma 3.7 +0.6 16.1 58.5 Elevated
Oregon 5.3 +0.6 17.4 51.2 Normal
Pennsylvania 4.4 +0.4 14.1 52.4 Normal
Rhode Island 4.4 -0.1 11.9 50.0 Normal
South Carolina 4.8 +0.6 9.8 53.1 Normal
South Dakota 2.2 +0.3 7.7 34.3 Healthy
Tennessee 3.6 +0.1 9.8 49.9 Normal
Texas 4.3 +0.2 10.9 56.5 Elevated
Utah 3.7 +0.4 4.8 42.9 Healthy
Vermont 2.7 +0.2 9.5 34.5 Healthy
Virginia 3.6 +0.5 9.5 46.0 Normal
Washington 4.9 +0.6 10.9 47.5 Normal
West Virginia 4.6 +0.7 14.9 55.1 Elevated
Wisconsin 3.2 0.0 11.2 38.9 Healthy
Wyoming 3.5 +0.2 4.4 39.6 Healthy
National Average 4.1 11.9 50.0

Values in red exceed the national average. Green values indicate year-over-year improvement. State names link to foreclosure law guides.

The Geography of Labor Market Weakness

Unemployment is the ADI's most real-time component. BLS publishes state data monthly, while most other distress indicators arrive quarterly. But here's the part I think is underappreciated. States with low headline unemployment can still have high SNAP enrollment (widespread low-wage work), high delinquency (asset stress), or both. The headline rate tells you about job loss. It says nothing about whether the jobs that exist are enough to cover the bills. The states worth watching are the ones where labor market weakness compounds pre-existing leverage. Particularly in the Sun Belt corridor where rapid population growth, high housing costs, and elevated FHA concentration create a triple vulnerability that a 4% unemployment rate obscures completely.

Data Sources

BLS LAUS

Unemployment rates from the Bureau of Labor Statistics Local Area Unemployment Statistics program. Seasonally adjusted annual averages for state-level rates. Monthly rates also available. Series IDs follow LASST + FIPS code + 0000000000003 format.

USDA FNS SNAP

SNAP (Supplemental Nutrition Assistance Program) enrollment from the USDA Food and Nutrition Service State Activity Reports. Enrollment rates computed as SNAP persons divided by Census 2024 state population estimates.

Citation

Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics, April 2026. SNAP: Supplemental Nutrition Assistance Program (SNAP), U.S. Department of Agriculture, Food and Nutrition Service, April 2026. For state-level composite scores, see State Financial Distress Rankings and Default Rates by State.

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Frequently Asked Questions

Which state has the highest unemployment rate in 2025?

District of Columbia has the highest unemployment rate at 6.7% as of 2026-01. The national average is 4.1%. District of Columbia's rate is 1.6x the national average.

Which state has the lowest unemployment?

Hawaii has the lowest unemployment rate at 2.2%, followed by South Dakota (2.2%) and North Dakota (2.6%). These states tend to have diversified economies with strong tourism, technology, or military employment.

How does state unemployment connect to the American Distress Index?

Unemployment is the Labor Market component of both the national ADI (8.4% weight) and the State ADI (15% weight). States with persistently high unemployment also tend to show elevated delinquency rates, higher SNAP enrollment, and more bankruptcy filings — all of which feed other ADI components. The ADI currently reads 64.4 (Elevated).

Which state unemployment rate increased the most in the last year?

Delaware saw the largest year-over-year increase at +1.3 percentage points, from 4.0% in 2024 to 5.3% in 2025. 33 states saw unemployment rise year-over-year.

Is there a correlation between unemployment and SNAP enrollment?

Yes, but the correlation is imperfect. Some states with moderate unemployment have high SNAP enrollment because of widespread low-wage work — not job loss. The combination of high unemployment AND high SNAP enrollment signals compounding distress, which is why both feed the State ADI (unemployment at 15% and SNAP-based economic need at 20%).

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