September Unemployment Rises in 25 States, Falls in 21 Compared to 2024

Recruiters talk to students at a 2024 job fair at South Dakota Mines University in Rapid City. South Dakota had the lowest unemployment rate in the nation, 2%, in September. (Photo courtesy of South Dakota Mines University)

Unemployment rates in September showed an increase in 25 states and a decrease in 21 states compared to the previous year, as reported by the government on Dec. 11 in a shutdown-delayed analysis. This rise comes amidst national unemployment climbing to 4.4% from 4.1%, with the number of job seekers rising from 6.9 million to 7.6 million.

Oregon experienced the most significant spike in unemployment, with rates jumping from 4.2% to 5.2%. The District of Columbia followed closely, increasing from 5.3% to 6.2%, while Delaware saw a rise from 3.6% to 4.5%. On the other hand, Indiana reported the largest decline, dropping from 4.4% to 3.7%, with Illinois and Kentucky also seeing notable decreases.

September’s payroll jobs showed an unexpected rise of 119,000, contrasting with a loss of 4,000 jobs in August. However, the federal shutdown affected data collection, postponing the September state report. A November national report is expected on Dec. 16.

Alternative data from ADP for November indicates a net job loss of 32,000, with small businesses particularly affected. Professional services, tech, and manufacturing sectors experienced the largest reductions.

South Dakota recorded the lowest unemployment rate at 2%, while the District of Columbia had the highest at 6.2%, impacted by federal layoffs. Other states with high unemployment include California (5.6%), Nevada (5.3%), New Jersey, and Oregon at 5.2%, and Michigan at 5.1%.

The state-by-state unemployment report faced delays due to a 43-day federal shutdown ending on Nov. 12.

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