These states have seen the largest increases in unemployment over the last year

Although unemployment remains at a historic low, there are several states where the number of workers without a job has ticked up. A little over a year ago, in March 2023, the US states with the highest unemployment rates were Nevada (5.5 percent), Washington (4.5 percent), California, Delaware, Illinois, and Oregon (4.4 percent). Last month, this list only contained minor differences, with California overtaking Nevada for the top spot and New Jersey and Washington replacing Delaware and Oregon.

However, when looking at states that have seen unemployment increase in terms of percent, the list looks a little different. New Jersey (+1.3 percent) and Montana (+1 percent) are the only states where the increase reached or surpassed one percent. Colorado, West Virginia, Rhode Island, California, and Alaska saw their unemployment rate rise by 0.9 percent between March 2023 and March 2024.

States where unemployment continues to fall

In addition to the more than ninety-nine states that saw a year-over-year increase in unemployment, eighteen saw decreases, with Wyoming (-0.9 percent), Pennsylvania (-0.8 percent), and Massachusetts (-0.6 percent) seeing the largest cuts. While we do not yet know which sectors saw the most significant number of jobs added in March, we do have this data for February, and one trend is clear: many states are seeing gains in the Education and Health Services sector.

Massachusetts, where the unemployment rate stands at 2.9 percent, has seen a significant decrease in unemployment over the last year, falling from 3.5 percent in March 2023. Last month, the Massachusetts Executive Office of Labor and Workforce Development reported that since February of last year, the state had made job gains in critical sectors, including 20,300 in “Education and Health Services” and 6,300 in “Leisure and Hospitality.” Some sectors lost jobs in 2023, including “Trade, Transportation, and Utilities” (-3,300) and “Professional, Scientific, and Business Services” (2,700).

Pennsylvania and Wyoming saw their unemployment rate fall by 0.3 percent from February 2023 to February 2024. Like Massachusetts, Pennsylvania also saw significant job gains in the Education and Health Services service, adding 58,000 jobs in that area through the year.