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Money U.S. Unemployment Statistics
The unemployment rate in the U.S. can be used to indicate the strength of the economy and the impact of government policies and global financial activity. Typically, a low unemployment rate indicates a strong economy and a high unemployment rate can signify an economic downturn.
This article will explore U.S. unemployment statistics including how the unemployment rate has changed over time, and different events that impact employment.
Key Statistics
- The U.S. unemployment rate is 4.1% as of December 2024, a decrease from 4.2% in November 2024.
- The U.S. saw its highest unemployment rate on record (24.9%) during the Great Depression in 1933.
- Unemployment is higher among some minority communities, with Black people (6.2%) having higher unemployment rates than White people (3.5%).
- People aged 16-19 have the highest unemployment rate at 12.4%, while people aged 45-54 have the lowest at 2.5%.
- South Dakota has the lowest unemployment rate of any state at 1.9%, while Nevada has the highest at 5.7%.
- People educated to less than high school diploma level have an unemployment rate of 5.6%, while people with professional degrees have an unemployment rate of 1.2%.
What is the unemployment rate?
The unemployment rate is the share of the labor force that is not employed, expressed as a percentage. The U.S. labor force includes people aged 16 years and older, residing in one of the 50 states (or Washington DC), who are not on active duty in the Armed Forces or living in prison, mental facilities, or other institutions. [1] BLS, "How the Government Measures Unemployment" https://www.bls.gov/cps/cps_htgm.htm
The unemployment rate is calculated using this formula:
(Unemployed/labor force) x 100
How are unemployment statistics collected?
Each month, the Bureau of Labor Statistics releases the total number of employed and unemployed people in the U.S. for the previous month. The government conducts a monthly survey called the Current Population Survey (CPS) which surveys around 60,000 households (approximately 110,000 individuals).
This survey is designed to be representative of the U.S. population, and so statistics on employment are collected through the survey and applied across the total population. [1] BLS, "How the Government Measures Unemployment" https://www.bls.gov/cps/cps_htgm.htm
Current U.S. unemployment rate
As of December 2024, the current U.S. unemployment rate is 4.1%. This is a slight decrease compared to 4.2% in November 2024 and a YoY increase compared to 3.8% in December 2023. [2] Federal Reserve, "Unemployment Rate" https://fred.stlouisfed.org/series/UNRATE
Average unemployment rate by year
The data below shows how the average unemployment rate has changed over time. 1982 saw the highest average unemployment rate since monthly data collection began in 1948, with an average unemployment rate of 9.8% across the year. However, the highest monthly unemployment rate since 1948 was recorded in April 2020 (14.8%) during the COVID-19 pandemic.
The year with the lowest average unemployment rate was 1953, with an average rate of 2.9% across the year. The lowest recorded unemployment rate was also in 1953, at 2.5% in May and June of that year.
| Year | Average Unemployment Rate |
|---|---|
| 1948 | 3.7% |
| 1949 | 6.1% |
| 1950 | 5.2% |
| 1951 | 3.3% |
| 1952 | 3.0% |
| 1953 | 2.9% |
| 1954 | 5.6% |
| 1955 | 4.4% |
| 1956 | 4.2% |
| 1957 | 4.3% |
| 1958 | 6.8% |
| 1959 | 5.4% |
| 1960 | 5.5% |
| 1961 | 6.7% |
| 1962 | 5.6% |
| 1963 | 5.6% |
| 1964 | 5.2% |
| 1965 | 4.6% |
| 1966 | 3.8% |
| 1967 | 3.8% |
| 1968 | 3.6% |
| 1969 | 3.5% |
| 1970 | 5.0% |
| 1971 | 5.9% |
| 1972 | 5.6% |
| 1973 | 4.8% |
| 1974 | 5.6% |
| 1975 | 8.4% |
| 1976 | 7.7% |
| 1977 | 7.1% |
| 1978 | 6.1% |
| 1979 | 5.8% |
| 1980 | 7.2% |
| 1981 | 7.6% |
| 1982 | 9.8% |
| 1983 | 9.6% |
| 1984 | 7.5% |
| 1985 | 7.2% |
| 1986 | 7.0% |
| 1987 | 6.2% |
| 1988 | 5.5% |
| 1989 | 5.3% |
| 1990 | 5.6% |
| 1991 | 6.8% |
| 1992 | 7.5% |
| 1993 | 6.9% |
| 1994 | 6.1% |
| 1995 | 5.6% |
| 1996 | 5.4% |
| 1997 | 4.9% |
| 1998 | 4.5% |
| 1999 | 4.2% |
| 2000 | 3.9% |
| 2001 | 4.7% |
| 2002 | 5.8% |
| 2003 | 6.0% |
| 2004 | 5.5% |
| 2005 | 5.1% |
| 2006 | 4.6% |
| 2007 | 4.6% |
| 2008 | 6.0% |
| 2009 | 9.2% |
| 2010 | 9.6% |
| 2011 | 8.9% |
| 2012 | 8.1% |
| 2013 | 7.3% |
| 2014 | 6.2% |
| 2015 | 5.4% |
| 2016 | 4.9% |
| 2017 | 4.4% |
| 2018 | 3.8% |
| 2019 | 3.6% |
| 2020 | 7.8% |
| 2021 | 5.4% |
| 2022 | 3.6% |
| 2023 | 3.6% |
| 2024 | 4.0% |
Source [2] Federal Reserve, "Unemployment Rate" https://fred.stlouisfed.org/series/UNRATE
The highest unemployment rates in U.S. history
Since the BLS began collecting regular monthly unemployment data in 1948, the highest monthly unemployment rate was recorded as 14.8% in April 2020. Unemployment rose sharply during this period due to the COVID-19 pandemic, with restrictions on travel and work causing many businesses to lay off their workers. [2] Federal Reserve, "Unemployment Rate" https://fred.stlouisfed.org/series/UNRATE
However, the highest unemployment rate on record was 24.9% in 1933, during The Great Depression. The 1929 stock market crash led to a reduction in investment and spending, many banks collapsed and decreases in production caused widespread layoffs. [3] BLS, "Unemployment Rates 1929 - 1939" https://data.bls.gov/timeseries/LFU21000100&series_id=LFU22000100&from_year=1929&to_year=1939&periods_option=specific_periods&periods=Annual+Data [4] FDR Library, "Great Depression Facts" https://www.fdrlibrary.org/great-depression-facts
Unemployment statistics by demographic
Unemployment rates can vary based on a number of different factors such as global economics, pandemics, and wars. Different demographics can also see varying unemployment rates. Let’s take a look at how unemployment differs by age, ethnicity, and education level.
Unemployment rates by age group
When breaking down unemployment statistics by age group, younger people are more likely to be unemployed than older people. Those aged 16 to 19 have the highest unemployment rate at 12.4%, likely due to people in this age range still being in high school and the first year of college. People aged 20 to 24 have an unemployment rate of 7.5% with many people in this age group still in college or just starting to enter the labor market.
The age group with the lowest unemployment rate is people aged 45 to 54 at 2.5%.
| Age Group | Unemployment Rate |
|---|---|
| 16 to 19 years | 12.4% |
| 20 to 24 years | 7.5% |
| 25 to 34 years | 4.5% |
| 35 to 44 years | 3.4% |
| 45 to 54 years | 2.5% |
| 55 years and over | 3.1% |
Data note: Unemployment rates are accurate as of December 2024.
Source [5] BLS, "Unemployment Rates by Age, Sex and Marital Status" https://www.bls.gov/web/empsit/cpseea10.htm
Unemployment rates by ethnicity
When looking at the differences in unemployment rates by race and ethnicity, Black Americans have the highest unemployment rate at 6.2%
White people have the lowest unemployment rate at 3.5%, while Asian people have the second lowest rate at 3.7%.
| Ethnicity | Unemployment Rate (seasonally adjusted) |
|---|---|
| Black | 6.2% |
| Asian | 3.7% |
| White | 3.5% |
Data note: Unemployment rates are accurate as of January 2025.
Source [6] BLS, "Employment Status of the Civilian Population by Race, Sex and Age" https://www.bls.gov/news.release/empsit.t02.htm
These differences in unemployment rates by race and ethnicity can be attributed to a number of factors. Typically, higher levels of education are associated with better chances of employment and reduced risks of unemployment. When comparing education levels by race, data from 2023 shows that Asian people are most likely to have a bachelor’s degree or higher (68%), followed by White people (44%), and Black people (36%).
People with higher levels of education are more likely to be employed in management and professional occupations, which are typically higher paying. 59% of employed Asians are in these positions, alongside 44% of employed White people, compared to 36% of employed Black people and 26% of employed Hispanics. [7] BLS, "Labor Force Characteristics by Race and Ethnicity" https://www.bls.gov/opub/reports/race-and-ethnicity/2023/
Unemployment rates by education level
Data on unemployment and education levels shows that the more educated someone is, the less likely they are to face unemployment. Those with education less than a high school diploma have the highest unemployment rate at 5.2% as of December 2024, while those with a bachelor’s degree or higher have an unemployment rate of just 2.28%.
| Education Level | Unemployment Rate |
|---|---|
| Less than a high school diploma | 5.2% |
| High school graduates, no college | 4.5% |
| Some college or associate degree | 3.5% |
| Bachelor’s degree or higher | 2.3% |
Data note: Unemployment rates shown here are for persons aged 25 years and older, and are accurate as of January 2025.
Source [8] BLS, "Unemployment Rates for Persons 25 Years and Older By Educational Attainment" https://www.bls.gov/charts/employment-situation/unemployment-rates-for-persons-25-years-and-older-by-educational-attainment.htm
Additional data from the Bureau of Labor Statistics shows that as someone’s education level increases, their earnings increase and their unemployment rate decreases. Those with education below a high school diploma have the lowest median weekly earnings ($708) and the highest unemployment rate (5.6%). People with a professional degree have the highest median weekly earnings ($2,206) and the lowest unemployment rate (1.2%).
Although a doctoral degree is the highest level of education you can achieve, people with this level of degree have slightly lower median earnings ($2,109 per week) and a slightly higher unemployment rate (1.6%) than people with a professional degree.
| Education Level | Median Usual Weekly Earnings ($) | Unemployment Rate (%) |
|---|---|---|
| Doctoral degree | 2109.00 | 1.60% |
| Professional degree | 2206.00 | 1.20% |
| Master's degree | 1737.00 | 2% |
| Bachelor's degree | 1493.00 | 2.20% |
| Associate's degree | 1058.00 | 2.70% |
| Some college, no degree | 992.00 | 3.30% |
| High school diploma | 899.00 | 3.90% |
| Less than a high school diploma | 708.00 | 5.60% |
Source [9] BLS, "Education Pays, 2023: Career Outlook" https://www.bls.gov/careeroutlook/2024/data-on-display/education-pays.htm
Unemployment rates by state
Unemployment rates can also vary by state; the data below shows how the states rank from lowest to highest unemployment.
South Dakota has the lowest unemployment rate of any state at 1.9%, while Nevada has the highest unemployment rate at 5.7%.
| Rank | State | Unemployment rate |
|---|---|---|
| 1 | South Dakota | 1.9% |
| 2 | Vermont | 2.3% |
| 3 | North Dakota | 2.4% |
| 4 | New Hampshire | 2.5% |
| 5 | Nebraska | 2.7% |
| 6 | Alabama | 2.9% |
| 6 | Hawaii | 2.9% |
| 6 | Maine | 2.9% |
| 6 | Mississippi | 2.9% |
| 6 | Virginia | 2.9% |
| 6 | Wisconsin | 2.9% |
| 12 | Connecticut | 3% |
| 12 | Iowa | 3% |
| 12 | Maryland | 3% |
| 15 | Wyoming | 3.2% |
| 16 | Arkansas | 3.3% |
| 16 | Florida | 3.3% |
| 16 | Montana | 3.3% |
| 16 | Oklahoma | 3.3% |
| 16 | Tennessee | 3.3% |
| 21 | Kansas | 3.4% |
| 21 | Minnesota | 3.4% |
| 21 | Pennsylvania | 3.4% |
| 24 | Utah | 3.5% |
| 25 | Arizona | 3.6% |
| 25 | Georgia | 3.6% |
| 27 | Idaho | 3.7% |
| 27 | North Carolina | 3.7% |
| 29 | Missouri | 3.8% |
| 30 | Massachusetts | 3.9% |
| 31 | Delaware | 4% |
| 31 | Oregon | 4% |
| 33 | Colorado | 4.1% |
| 33 | Louisiana | 4.1% |
| 33 | Texas | 4.1% |
| 36 | West Virginia | 4.2% |
| 37 | New Mexico | 4.3% |
| 37 | Ohio | 4.3% |
| 39 | Indiana | 4.4% |
| 39 | New York | 4.4% |
| 41 | Alaska | 4.6% |
| 41 | Rhode Island | 4.6% |
| 43 | Michigan | 4.7% |
| 43 | New Jersey | 4.7% |
| 43 | South Carolina | 4.7% |
| 43 | Washington | 4.7% |
| 47 | Kentucky | 5% |
| 48 | Illinois | 5.3% |
| 49 | California | 5.4% |
| 50 | District of Columbia | 5.7% |
| 50 | Nevada | 5.7% |
Data note: Unemployment rates are accurate as of November 2024.
Source [10] BLS, "Unemployment Rates for States" https://www.bls.gov/web/laus/laumstrk.htm
States with the lowest unemployment rates
South Dakota
South Dakota has the lowest unemployment rate of all of the states at 1.9% as of December 2024. Other data showed that South Dakota had only 36 available workers for every open job as of 2023. [11] U.S. Chamber of Commerce, "Understanding America's Labor Shortage" https://www.uschamber.com/workforce/the-states-suffering-most-from-the-labor-shortage
While a low unemployment rate is a positive sign for workers, indicating that most people who want a job can get one fairly easily, it could pose issues for businesses. A lack of people looking for jobs could mean that businesses have a more difficult time hiring people with the skills they need. [12] SDPB, "South Dakota Unemployment Reaches 1.8%" https://www.sdpb.org/business-economics/2023-07-24/south-dakota-unemployment-reaches-1-8-percent
Vermont
The state with the second lowest unemployment rate is Vermont at 2.4%. Other data shows that, like South Dakota, Vermont has only 36 available workers for every 100 open jobs (as of 2023). [11] U.S. Chamber of Commerce, "Understanding America's Labor Shortage" https://www.uschamber.com/workforce/the-states-suffering-most-from-the-labor-shortage
North Dakota
North Dakota has the third lowest unemployment rate at 2.5%. Factors like population shifts, economic booms, and the continuing effects of the COVID-19 pandemic have exacerbated job shortages in the state. There are 30 available workers for every 100 jobs in North Dakota, with many companies struggling to fill open positions. [13] EB3, "Understanding North Dakota's Labor Shortage Problem" https://eb3.work/understanding-north-dakotas-labor-shortage-problem/
States with the highest unemployment rates
Nevada
Nevada has the highest unemployment rate of all the states at 5.7%. Many workers in Nevada are employed in the leisure and hospitality industry in resorts across Las Vegas. However, some experts suggest that a changing job market in Nevada is leading to fewer jobs in resorts and more openings in other sectors. Previously, around 25% of jobs in Reno were in hospitality, but this figure is around 15% as of 2024. [14] 8 News Now, "The Wrong Jobs: Why Nevada's Worst In U.S. Unemployment Hasn't Changed" https://www.8newsnow.com/news/local-news/the-wrong-jobs-why-nevadas-worst-in-us-unemployment-hasnt-changed/
California
California’s unemployment rate is the second highest of the states at 5.4%. Data as of August suggests there are more than one million jobless workers in California. This high rate could be due to factors like a loss in state government jobs, and a dip in the state’s film industry. [15] LA Times, "California Unemployment Rises and Job Growth Falls Back Amid Cuts in Government Payrolls" https://www.latimes.com/business/story/2024-09-20/california-unemployment-rises-and-job-growth-falls-back-amid-cuts-in-government-payrolls
Illinois
Illinois has the third-highest unemployment rate at 5.3%. The state also ranked worst among its neighboring states (and 45th nationally) for pandemic job recovery rates. [16] Illinois Policy, "Illinois Ties for Third-Worst Unemployment Rate in the Nation" https://www.illinoispolicy.org/illinois-third-worst-unemployment-rate-in-the-nation/
What impacts unemployment rates?
Unemployment rates can fluctuate in relation to a number of different factors, some of these include:
- Recessions - Economic downturns can increase unemployment rates as businesses face reduced consumer spending and dwindling profits, leading to layoffs and hiring freezes. [17] Generation.org, "Understanding Unemployment Causes Consequences and Solutions" https://www.generation.org/news/understanding-unemployment-causes-consequences-and-solutions/
- Technological advances - Developments in technology can lead to certain jobs becoming obsolete, leaving a surplus of workers with particular skills who can no longer find jobs in their industry. [17] Generation.org, "Understanding Unemployment Causes Consequences and Solutions" https://www.generation.org/news/understanding-unemployment-causes-consequences-and-solutions/
- Pandemics - As we saw in 2020 with COVID-19, pandemics impact people’s ability to work and businesses’ ability to sell their products and engage with customers. The U.S. saw a record unemployment rate of 14.8% in April 2020 as a result of the pandemic. [18] CRS Reports, "Unemployment Rates During the COVID-19 Pandemic: In Brief" https://crsreports.congress.gov/product/pdf/R/R46554/9
Sources
- [1] BLS, "How the Government Measures Unemployment" https://www.bls.gov/cps/cps_htgm.htm
- [2] Federal Reserve, "Unemployment Rate" https://fred.stlouisfed.org/series/UNRATE
- [3] BLS, "Unemployment Rates 1929 - 1939" https://data.bls.gov/timeseries/LFU21000100&series_id=LFU22000100&from_year=1929&to_year=1939&periods_option=specific_periods&periods=Annual+Data
- [4] FDR Library, "Great Depression Facts" https://www.fdrlibrary.org/great-depression-facts
- [5] BLS, "Unemployment Rates by Age, Sex and Marital Status" https://www.bls.gov/web/empsit/cpseea10.htm
- [6] BLS, "Employment Status of the Civilian Population by Race, Sex and Age" https://www.bls.gov/news.release/empsit.t02.htm
- [7] BLS, "Labor Force Characteristics by Race and Ethnicity" https://www.bls.gov/opub/reports/race-and-ethnicity/2023/
- [8] BLS, "Unemployment Rates for Persons 25 Years and Older By Educational Attainment" https://www.bls.gov/charts/employment-situation/unemployment-rates-for-persons-25-years-and-older-by-educational-attainment.htm
- [9] BLS, "Education Pays, 2023: Career Outlook" https://www.bls.gov/careeroutlook/2024/data-on-display/education-pays.htm
- [10] BLS, "Unemployment Rates for States" https://www.bls.gov/web/laus/laumstrk.htm
- [11] U.S. Chamber of Commerce, "Understanding America's Labor Shortage" https://www.uschamber.com/workforce/the-states-suffering-most-from-the-labor-shortage
- [12] SDPB, "South Dakota Unemployment Reaches 1.8%" https://www.sdpb.org/business-economics/2023-07-24/south-dakota-unemployment-reaches-1-8-percent
- [13] EB3, "Understanding North Dakota's Labor Shortage Problem" https://eb3.work/understanding-north-dakotas-labor-shortage-problem/
- [14] 8 News Now, "The Wrong Jobs: Why Nevada's Worst In U.S. Unemployment Hasn't Changed" https://www.8newsnow.com/news/local-news/the-wrong-jobs-why-nevadas-worst-in-us-unemployment-hasnt-changed/
- [15] LA Times, "California Unemployment Rises and Job Growth Falls Back Amid Cuts in Government Payrolls" https://www.latimes.com/business/story/2024-09-20/california-unemployment-rises-and-job-growth-falls-back-amid-cuts-in-government-payrolls
- [16] Illinois Policy, "Illinois Ties for Third-Worst Unemployment Rate in the Nation" https://www.illinoispolicy.org/illinois-third-worst-unemployment-rate-in-the-nation/
- [17] Generation.org, "Understanding Unemployment Causes Consequences and Solutions" https://www.generation.org/news/understanding-unemployment-causes-consequences-and-solutions/
- [18] CRS Reports, "Unemployment Rates During the COVID-19 Pandemic: In Brief" https://crsreports.congress.gov/product/pdf/R/R46554/9
