State Employment And Unemployment — December 2021

January 25, 2022

According to the U.S. Bureau of Labor Statistics, unemployment rates fell in 42 states and the District of Columbia in December and were unchanged in eight states. Fourty-eight states and the District of Columbia had lower unemployment rates than a year ago, while two states saw little change. The national unemployment rate, 3.9%, fell by 0.3 percentage point in a month and was 2.8 percentage point lower than in December 2020.

In December 2021, nonfarm payroll employment increased in 17 states and remained virtually unchanged in the remaining 33 states and the District of Columbia. Over the year, 48 states and the District of Columbia added nonfarm payroll jobs, while two states remained virtually unchanged.

Unemployment

In December, Nebraska had the lowest unemployment rate, 1.7%, followed by Utah, 1.9%. Arkansas (3.1%), Georgia (2.6%), Idaho (2.4%), Indiana (2.7%), Kentucky (3.9%), Mississippi (4.5%), Montana (2.5%), Nebraska (1.7%), Oklahoma (2.3%), Utah (1.9%), West Virginia (3.7%), and Wisconsin set new series lows (all state series begin in 1976). (2.8%). The highest unemployment rates were in California and Nevada, at 6.5% and 6.4%, respectively. In total, 17 states and the District of Columbia had unemployment rates higher than the national average of 3.9%, 16 had lower rates, and 17 had rates that were not significantly different from the national rate.

Massachusetts saw the highest month-to-month decline in the unemployment rate in December (-1.3 percentage points). Arizona experienced the next-largest drop (-0.6 percentage point). Eight states had jobless rates that were not noticeably different from a month ago, though some had numerical changes that were as least as large as the notable changes.

Hawaii had the greatest fall in unemployment from December 2020 (-4.6 percentage points), closely followed by Massachusetts (-4.5 points). Another three states and the District of Columbia saw decreases of at least 3.0 percentage points.

Nonfarm Payroll Employment

In December 2021, nonfarm payroll employment increased in 17 states and remained virtually unchanged in the remaining 33 states and the District of Columbia. California (+50,700), Texas (+50,000), and New York (+45,300) saw the most job growth. Iowa and West Virginia saw the greatest percentage increases (+0.8% each), followed by Massachusetts, Missouri, and Montana (+0.6% each).

Nonfarm payroll employment climbed in 48 states and the District of Columbia over the year and remained virtually constant in two states. California (+954,400), Texas (+694,400), and Florida (+479,300) saw the most job growth. Nevada (+7.4%), Hawaii (+7.1%), and Massachusetts (+6.6%) saw the highest percentage gains.

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