Jobs are increasing in the United States, with an unexpectedly high 256,000 added in December 2024, according to the Bureau of Labor Statistics.
A recent study from WalletHub analyzed how unemployment rates are changing throughout the U.S., by comparing the 50 states and the District of Columbia based on six key metrics that compare the data from December 2024 to key dates in 2024, 2023, 2020 and 2019. From there, they used a weighted scale to determine a ranking.
Read more: Breaking down the labor market: What it means for employees and employers
South Dakota had the lowest unemployment rate in December 2024, at 1.9%. The state saw a 7% decrease in unemployment in December 2024 compared to December 2023, as well as a 25.60% decrease in unemployment between December 2024 and December 2019.
Other top states include Connecticut and New Hampshire. Connecticut had an unemployment rate of 3% in December 2024 and a 20.80% fall in unemployment between December 2024 and December 2019. New Hampshire had an unemployment rate of 2.6% in December 2024 and a 0.10% fall in unemployment between December 2024 and December 2019.
Kentucky ranked at the bottom, with an unemployment rate of 5.2% in December 2024 and a rise in unemployment between December 2024 and December 2019 of 29.5%
Other states at the bottom include Nevada and South Carolina. Nevada had an unemployment rate of 5.7% in December 2024 and a rise in unemployment of 42.5% between December 2024 and December 2019. South Carolina had an unemployment rate of 4.7% in December 2024 and a rise in unemployment of 93.9% between December 2024 and December 2019.
"As we navigate through 2025, the job market is undergoing significant transformations influenced by technological advancements, demographic shifts, and evolving workplace dynamics," Andrew Burnstine Ph.D., an associate professor in the College of Business and Management at Lynn University, said in a release. "A prominent trend is the increasing integration of artificial intelligence (AI) across various sectors. While concerns about AI-induced job displacement persist, current data suggests a gradual adoption. Only a small fraction of job postings currently require generative AI skills, indicating that widespread job displacement by AI is not imminent."
Read more about unemployment rate changes by state.
States with the lowest unemployment
Overall
Rank | State | Unemployment
Rate
(December 2024) | Change in
Unemployment
(December 2024 vs
December 2020) | Change in
Unemployment
(December 2024 vs
December 2019) |
| 10 | Maryland | 3.10% | -52.00% | -7.90% |
| 9 | Wisconsin | 3.00% | -38.50% | -4.30% |
| 8 | Oklahoma | 3.30% | -32.90% | 12.80% |
| 7 | Montana | 3.10% | -21.10% | -7.30% |
| 6 | Virginia | 3.00% | -36.40% | 11.00% |
| 5 | Vermont | 2.40% | -38.70% | 23.60% |
| 4 | Hawaii | 3.00% | -70.90% | 27.40% |
| 3 | New Hampshire | 2.60% | -42.10% | -0.10% |
| 2 | Connecticut | 3.00% | -57.20% | -20.80% |
| 1 | South Dakota | 1.90% | -36.30% | -25.60% |
States with the highest unemployment
Overall
Rank | State | Unemployment
Rate
(December 2024) | Change in
Unemployment
(December 2024 vs
December 2020) | Change in
Unemployment
(December 2024 vs
December 2019) |
| 51 | Kentucky | 5.20% | 15.10% | 29.50% |
| 50 | Nevada | 5.70% | -36.10% | 42.50% |
| 49 | South Carolina | 4.70% | 5.00% | 93.90% |
| 48 | Michigan | 5.00% | -23.80% | 34.90% |
| 47 | California | 5.50% | -37.20% | 30.90% |
| 46 | Illinois | 5.20% | -28.60% | 43.30% |
| 45 | District of Columbia | 5.50% | -22.10% | 3.90% |
| 44 | Indiana | 4.50% | -8.30% | 38.30% |
| 43 | Colorado | 4.40% | -27.00% | 63.30% |
| 42 | Rhode Island | 4.60% | -31.30% | 35.30% |
