The unemployment rate was down to 4% in January, giving a positive outlook for participation in the U.S. labor force. While businesses in some locations are having an easy time filling roles, businesses in other states are facing hiring shortages.
WalletHub recently ranked the states struggling the most and least with hiring, by comparing the rate of job openings for the latest month and the last 12 months across all 50 states and Washington, D.C.
Kentucky is struggling the most with hiring, with a job opening rate of 6.50% in January, as well as a 6.08% job opening rate over the previous 12 months. Other states having a hard time hiring include Alaska and West Virginia.
Read more: How to spot a 'ghost job'
California is having the easiest time hiring talent, with a job opening rate of 3.40% in January, as well as a 3.63% job opening rate over the last 12 months. Hiring is also going well in Hawaii and Washington.
"The labor market imbalance will likely persist throughout 2025, but its nature will evolve," said J. Craig Wallace, department chair and professor at Clemson University, in a release. "Organizations that adapt their approaches to focus on employee well-being and involvement while maintaining clear performance expectations will fare much better. The key to success lies in creating work environments that balance organizational effectiveness with employee satisfaction by implementing strategic people management practices such as high involvement, where talent comes first."
Read more about the states struggling the most and least with hiring.
States struggling the least with hiring
| Rank | State | Job openings rate
January | Job openings rate
last 12 months |
| 10 | Michigan | 4.20% | 4.72% |
| 9 | New Jersey | 4.20% | 4.67% |
| 8 | District of Columbia | 4.20% | 4.63% |
| 7 | Connecticut | 4.10% | 4.67% |
| 6 | Iowa | 4.20% | 4.47% |
| 5 | Utah | 4.00% | 4.73% |
| 4 | Texas | 4.00% | 4.56% |
| 3 | Washington | 3.80% | 4.17% |
| 2 | Hawaii | 3.60% | 4.08% |
| 1 | California | 3.40% | 3.63% |
States struggling the most with hiring
| Rank | State | Job openings rate January | Job openings rate last 12 months |
| 10 | Louisiana | 5.40% | 5.53% |
| 9 | New Mexico | 5.40% | 5.72% |
| 8 | Oklahoma | 5.40% | 5.82% |
| 7 | Georgia | 5.70% | 5.35% |
| 6 | Virginia | 5.60% | 5.79% |
| 5 | Arkansas | 5.70% | 5.65% |
| 4 | South Carolina | 5.70% | 5.97% |
| 3 | West Virginia | 5.90% | 6.11% |
| 2 | Alaska | 6.00% | 6.71% |
| 1 | Kentucky | 6.50% | 6.08% |
