In 2025, South Dakota (1.8%) recorded the lowest unemployment rate among the US states, while Washington, D.C., recorded the highest unemployment rate (5.9%). However, the national unemployment rate is 4.1%.
The US labor market is expected to remain stable this year, but unemployment figures vary widely by state. While the national unemployment rate in the US was 4.1% in June, some regions are seeing much higher or lower unemployment.
The list below shows the unemployment rates by US state, with the District of Columbia (D.C.) in Washington at the top of the list with the highest unemployment rate of 5.9%.
Notably, the nation’s capital, Washington, D.C., saw a significant increase in its high rate from 5.0% in early 2024, indicating growing challenges in the capital’s job market amid Trump’s massive federal workforce layoffs.
Nevada (5.4%) and California (5.4%) follow, highlighting ongoing challenges in sectors such as tourism, entertainment, and technology. Michigan (5.3%) is among the hardest-hit states, according to Visual Capitalist, due to weak performance in manufacturing.
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On the other hand, among US states, South Dakota recorded the lowest unemployment rate at just 1.8%. North Dakota (2.5%) and Vermont (2.6%) also have very low unemployment rates, according to Visual Capitalist, highlighting the economic strength of the small-populated state.
Although the US national unemployment rate is slightly higher than the lowest level seen during the post-pandemic recovery, it highlights the discriminatory nature of the American job market.