As of the latest available data, the states with the highest unemployment rates in America cluster in a relatively narrow band, but they show clear regional and structural stresses. California, Nevada and Michigan top the list, while several East Coast and Rust Belt states round out the top ten.
The 10 States With The Highest Unemployment
Using recent state‑level data from the Bureau of Labor Statistics and compiled summaries, these are the 10 places struggling most with joblessness (latest 2025 readings, seasonally adjusted):
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California – 5.5–5.6%
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Nevada – 5.3%
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Michigan – 5.1–5.2%
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New Jersey – 5.0–5.2%
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Oregon – 5.0–5.2%
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Ohio – 5.0%
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Massachusetts – 4.7–4.8%
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Alaska – 4.7%
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Kentucky – 4.7%
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Rhode Island – 4.5–4.6%
The District of Columbia has an even higher rate than any state (about 6.0–6.2%), but is reported separately as a federal district.
Snapshot Table: Highest Unemployment States
| Rank* | State / District | Approx. Unemployment Rate (Latest 2025) |
|---|---|---|
| – | District of Columbia | 6.0–6.2% (higher than any state) |
| 1 | California | 5.5–5.6% |
| 2 | Nevada | 5.3% |
| 3 | Michigan | 5.1–5.2% |
| 4 (tie) | New Jersey | 5.0–5.2% |
| 4 (tie) | Oregon | 5.0–5.2% |
| 4 (tie) | Ohio | 5.0% |
| 7 | Massachusetts | 4.7–4.8% |
| 8 (tie) | Alaska | 4.7% |
| 8 (tie) | Kentucky | 4.7% |
| 10 | Rhode Island | 4.5–4.6% |
*Rank refers to states only; D.C. shown separately because it is not a state.
Why These States Rank So High
Several common threads help explain why these states sit at the top of the unemployment table:
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Heavy dependence on cyclical sectors: Tourism and hospitality in Nevada and parts of California, and legacy manufacturing in Michigan and Ohio.
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High cost of living: In California, New Jersey, Massachusetts and parts of Oregon, some workers are priced out of local housing even as jobs exist, creating friction in matching workers to roles.
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Structural shifts: Long‑term transitions away from traditional automotive and industrial jobs in the Midwest, plus ongoing changes in energy and fisheries affecting Alaska.
In some cases, part‑time or gig work also masks underemployment: people are technically working but not getting enough hours or pay, so headline unemployment understates local economic strain.
How These Rates Compare To National Conditions
Nationally, the U.S. unemployment rate was about 4.4% in September 2025, up slightly from a year earlier but still historically moderate. That means the highest‑unemployment states are roughly a full percentage point or more above the national average, with D.C. sitting around two points higher.
The spread between the lowest and highest state rates is narrower than in past downturns—South Dakota is around 2.0%, while California is mid‑5s—showing broad labor‑market resilience even as certain regions lag. Still, for the workers in those hardest‑hit states, the gap translates into more competition for each open job and longer job searches.
What High‑Unemployment States Are Doing
Policy responses vary by state, but common strategies include:
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Incentives and tax breaks to attract or retain employers in growth sectors (clean energy, tech, logistics, advanced manufacturing).
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Expanded training and reskilling programs, often in partnership with community colleges and unions, to help workers move from shrinking industries into healthcare, trades or tech.
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Targeted support for small businesses and tourism promotion in places like Nevada, California and Alaska to stabilize visitor‑dependent economies.
The effectiveness of these policies will show up gradually as future unemployment releases reveal whether local jobless rates trend back toward the national average.
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FAQs
Q1 Which state currently has the highest unemployment rate?
Among states, California has the highest recent unemployment rate (around 5.5–5.6%), with Nevada and Michigan close behind.
Q2 Does any place have a higher rate than California?
Yes, the District of Columbia has a higher unemployment rate than any state, at roughly 6.0–6.2%, but it is classified as a federal district, not a state.
Q3 How big is the gap between the best and worst states?
Recent data show a spread from about 2.0% in low‑unemployment states like South Dakota up to the mid‑5% range in California and over 6% in D.C.