What Are the State Unemployment Rates for March 2025?

The U.S. Bureau of Labor Statistics has released state-level unemployment data for March 2025, and the results highlight significant variation in labor market conditions across the country. According to the data, state unemployment rates range from a low of 1.8% to a high of 5.7%, reflecting both regional economic strengths and challenges.

What States Have the Lowest Unemployment Rates?

In March 2025, South Dakota recorded the lowest unemployment rate in the nation at just 1.8%. This was followed by North Dakota and Vermont, both with unemployment rates of 2.6%. Other states with notably low rates include Montana (2.7%), Hawaii (2.9%), and Nebraska (3.0%). These figures suggest robust labor markets in the Plains, Mountain West, and parts of New England.

States with the lowest unemployment rates tend to share characteristics such as strong job growth in essential industries, stable populations, and relatively low cost of living. In places like South Dakota and North Dakota, agriculture, energy, and manufacturing remain key economic drivers, supporting consistently low jobless numbers.

Which States Have the Highest Unemployment Rates?

At the other end of the spectrum, Nevada had the highest unemployment rate in March 2025, at 5.7%. California, Illinois, and New York followed with rates above 4.5%. These states are often more economically diverse and may be dealing with sector-specific challenges, such as shifts in the tech industry, declining retail, or lingering impacts from past layoffs.

Nevada’s high unemployment rate may be influenced by its dependence on tourism and hospitality—sectors that are more vulnerable to seasonal swings and economic fluctuations. Similarly, California’s job market remains in flux amid tech restructuring and housing affordability issues.

How Do Regional Trends Compare?

The Midwest and Mountain West are generally leading in employment stability, while some coastal and highly urbanized states are experiencing higher rates of unemployment. This contrast may reflect differences in cost of living, population migration trends, and post-pandemic economic recovery timelines.

For example, states like Utah, Idaho, and Iowa are benefiting from in-migration and the expansion of tech and logistics industries. Conversely, large urban centers may be experiencing slower recoveries in commercial real estate and service industries, impacting employment levels.

Why Does State-Level Unemployment Matter?

Understanding state-level unemployment rates is crucial for policymakers, job seekers, and businesses. For individuals considering relocation or remote work, knowing where job opportunities are most abundant can guide decision-making. For businesses, unemployment rates can inform hiring strategies, market expansion, and competitive wages.

Tracking these figures over time can also highlight broader economic trends and provide early signals of growth or recession at both state and national levels.

Where Can I Find the Latest State Unemployment Data?

The Bureau of Labor Statistics (BLS) publishes monthly updates on employment data by state, including unemployment rates, labor force participation, and job gains or losses by sector. You can view the full March 2025 report directly on the BLS website or explore summaries and visualizations provided by economic analysts and state agencies.

Unemployment Rates by State