by Brett Bayduss, on Jun 1, 2020 12:31:56 PM
The U.S. labor market reached 14.7% in April as the effects of the COVID-19 pandemic caused employers to lay off and furlough over 23 million workers. Although the long-term impact of COVID-19 on the economy remains uncertain, the impact on unemployment rates across the country is very apparent. There is a 30- to 60-day lag time from when the most current unemployment rates are released, so unfortunately it is very difficult to consistently measure unemployment rates across all states in real-time measurement.
The April unemployment rates by state were just released on May 22 by the Bureau of Labor Statistics; however, metropolitan area unemployment rates — indicating the city-level impact — won’t be released until early June. Site Selection Group has provided a summary of the key findings from the most recent state-level unemployment rate data from the Bureau of Labor Statistics to help you navigate these challenging economic conditions.
Two-month state level unemployment rate increased by 4.1% to 24.6%
The two-month increase in unemployment by state ranges from 4.1% to 24.6%. The most notable finding is that only eight states are below a 10% unemployment rate, and there is not one state below 7.9% unemployment. To place this in greater context, the lowest unemployment rate by state during the month of February was 2.2% and the highest unemployment rate by state in February was 5.8%. The following map summarizes unemployment by state and the increase between February and April:
U.S. Unemployment Rate by State (April 2020)
Nevada unemployment rate impacted the most by COVID-19 pandemic
Nevada has the highest unemployment of all states at 28.2%. This can most likely be attributed to Nevada’s dominance in the travel, tourism, hospitality and entertainment sectors. Nevada also has the greatest increase in unemployment from February to April of almost 25%. All 10 of the highest unemployed states are at or above 15.5% unemployment. Beyond the top 10 states, the next cluster of high-ranking states are all between 14.5% to 15.5% so not much variance from the top 10 states. Listed below are the 10 states with the highest unemployment rate along with their increase from February.
10 States with Highest Unemployment Rate
| Rank | State | Region | April 2020 Unemployment | Increase between February to April |
|---|---|---|---|---|
| 1 | Nevada | West | 28.20% | 24.60% |
| 2 | Michigan | Midwest | 22.70% | 19.10% |
| 3 | Hawaii | Outside | 22.30% | 19.60% |
| 4 | Rhode Island | Northeast | 17.00% | 13.60% |
| 5 | Indiana | Midwest | 16.90% | 13.80% |
| 6 | Ohio | Midwest | 16.80% | 12.70% |
| 7 | Illinois | Midwest | 16.40% | 13.00% |
| 8 | New Hampshire | Northeast | 16.30% | 13.70% |
| 9 | Vermont | Northeast | 15.60% | 13.20% |
| 10 | California | West | 15.50% | 11.60% |
COVID-19 creates unemployment trends at the regional level
The regional breakdown of states generates interesting findings as well. Overall the Northeast states (Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont) collectively had the most states with the highest unemployment rates. Seven of the 20 highest unemployed states are in the Northeast. Additionally, those seven Northeast states also had a change in unemployment of over 10% over the last two months. This is the highest of any other region.
The Midwest and Southeast states were both very similar with their overall rankings. The Midwest had four states within the top 10 (in highest order: Michigan, Indiana, Ohio, Illinois) and no additional states within the top 20. The Southeast did not have any states within the top 10, but four states within the top 20 (in highest order: Kentucky, Mississippi, Tennessee, Louisiana).
The Southwest states (Arizona, New Mexico, Oklahoma, Texas) did not have any states within the top 20 for highest unemployment. It is the only region that did not have a state break the top 20. Oklahoma is the only state in that region with a two-month change since February of over 10%. The other 3 states had changes of 8% to 9.3%.
The West region (California, Colorado, Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming) had two states in the top 10 (Nevada and California) and then Washington is the only other state breaking the top 20.
The Mid-Atlantic, comprised of Delaware, Maryland, West Virginia and Washington D.C. only had West Virginia within the top 20 at 15.2%. Delaware and West Virginia both had over 10% change since February.
The following tables provide a summary of state unemployment conditions as well as regional and national rankings:
Mid-Atlantic Region
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| West Virginia | 15 | 1 | 15.2% | 10.3% |
| Delaware | 21 | 2 | 14.3% | 10.4% |
| D.C. | 38 | 3 | 11.1% | 6.0% |
| Maryland | 44 | 4 | 9.9% | 6.6% |
Midwest Region
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| Michigan | 2 | 1 | 22.7% | 19.1% |
| Indiana | 5 | 2 | 16.9% | 13.8% |
| Ohio | 6 | 3 | 16.8% | 12.7% |
| Illinois | 7 | 4 | 16.4% | 13.0% |
| Wisconsin | 23 | 5 | 14.1% | 10.6% |
| Kansas | 37 | 6 | 11.2% | 8.1% |
| Iowa | 41 | 7 | 10.2% | 7.4% |
| South Dakota | 42 | 8 | 10.2% | 6.9% |
| Missouri | 46 | 9 | 9.7% | 6.2% |
| North Dakota | 48 | 10 | 8.5% | 6.3% |
| Nebraska | 49 | 11 | 8.3% | 5.4% |
| Minnesota | 50 | 12 | 8.1% | 5.0% |
Northeast Region
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| Rhode Island | 4 | 1 | 17.00% | 13.60% |
| New Hampshire | 8 | 2 | 16.30% | 13.70% |
| Vermont | 9 | 3 | 15.60% | 13.20% |
| New Jersey | 14 | 4 | 15.30% | 11.50% |
| Massachusetts | 16 | 5 | 15.10% | 12.30% |
| Pennsylvania | 17 | 6 | 15.10% | 10.40% |
| New York | 19 | 7 | 14.50% | 10.80% |
| Maine | 40 | 8 | 10.60% | 7.40% |
| Connecticut | 51 | 9 | 7.90% | 4.10% |
Southeast Region
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| Kentucky | 12 | 1 | 15.40% | 11.20% |
| Mississippi | 13 | 2 | 15.40% | 10.00% |
| Tennessee | 18 | 3 | 14.70% | 11.30% |
| Louisiana | 20 | 4 | 14.50% | 9.30% |
| Alabama | 25 | 5 | 12.90% | 10.20% |
| Florida | 26 | 6 | 12.90% | 10.10% |
| North Carolina | 30 | 7 | 12.20% | 8.60% |
| South Carolina | 31 | 8 | 12.10% | 9.60% |
| Georgia | 32 | 9 | 11.90% | 8.80% |
| Virginia | 39 | 10 | 10.60% | 8.00% |
| Arkansas | 43 | 11 | 10.20% | 6.70% |
Southwest Region
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| Oklahoma | 24 | 1 | 13.70% | 10.50% |
| Texas | 28 | 2 | 12.80% | 9.30% |
| Arizona | 29 | 3 | 12.60% | 8.10% |
| New Mexico | 36 | 4 | 11.30% | 6.50% |
West Region
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| Nevada | 1 | 1 | 28.20% | 24.60% |
| California | 10 | 2 | 15.50% | 11.60% |
| Washington | 11 | 3 | 15.40% | 11.60% |
| Oregon | 22 | 4 | 14.20% | 10.90% |
| Idaho | 33 | 5 | 11.50% | 8.80% |
| Colorado | 34 | 6 | 11.30% | 8.80% |
| Montana | 35 | 7 | 11.30% | 7.80% |
| Utah | 45 | 8 | 9.70% | 7.20% |
| Wyoming | 47 | 9 | 9.20% | 5.50% |
Non-Continental States
| State | National Rank | Regional Rank | April Unemployment | Increase between February to April |
|---|---|---|---|---|
| Hawaii | 3 | 1 | 22.30% | 19.60% |
| Alaska | 27 | 2 | 12.90% | 7.10% |
Conclusions
There is no doubt the country is experiencing unprecedented unemployment rates as a direct result of COVID-19. As a nation, the current unemployment rate is 14.7%, although many predict it is closer to 20% or even higher. Although this is not as high as the national unemployment of over 25% during the Great Depression, current unemployment conditions are still very daunting and predicted to rise. Site Selection Group will continue to monitor the latest unemployment rates by state as well as by metro area to identify any changes or trends to help you make more informed location decisions.
