In July 2024, the national unemployment rate was 4.3%, the highest level since October 2021. The jobless rate rose by 0.2 percentage point over June and was 0.8 percentage point higher than in July 2023. This continues the 2024 trend of unemployment reaching and staying above 4%.
Unemployment rates were higher in July in 13 states, lower in 1 state, and stable in 36 states and the District of Columbia, the U.S. Bureau of Labor Statistics reported in the most recently available statistics.
South Dakota had the lowest jobless rate in July (2%), closely followed by Vermont (2.1%) and North Dakota (2.2%). The District of Columbia had the highest unemployment rate (5.5%), closely followed by Nevada (5.4%).
A low level of unemployment sounds like great news for American workers, but it presents challenges too. Economists say that inflation cannot ease significantly while unemployment is low. For small businesses, the problem can be particularly acute. Not only is it hard to fill job openings, but salary pressure increases and if there aren’t enough skilled workers, the business can stagnate or slump.
Citing a slowdown in inflation and concerns over the health of the job market, the Federal Reserve cut its key interest rate by a half a percentage point in September.
Looking At Unemployment Data By City
In this story, we are taking a look at unemployment rates by city to get a feel for the job landscape across America. Using Bureau of Labor Statistics (BLS) data, we have created a list that ranks the jobless statistics for the cities that show the largest populations within their respective states.
On our list, Detroit, Michigan, is the city with the highest unemployment in America, followed by Las Vegas, Nevada, and then Los Angeles. Within this list, many fascinating — and even contradictory — trends are revealed that have bearing on small business owners.
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What is the Unemployment Rate and How Is it Calculated?
The labor force participation rate in July 2024 was 62%, which is virtually the same as the last six months. Why doesn’t that align with a 4.3% unemployment average?
The Bureau of Labor Statistics, which falls under the Department of Labor, measures labor market activity, working conditions, price changes, and productivity in the U.S. economy. The unemployment rate for any area is the number of area residents without a job and looking for work divided by the total number of area residents in the labor force.
In other words, the unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed). What the BLS unemployment rate will not tell you is how many people have taken themselves out of the workforce, perhaps becoming so discouraged in their job search that they have given up hope of finding a job.
Some economists say that the nation’s low unemployment could be due, in part, to a low labor participation rate.
U.S. City Unemployment Rates: Lowest to Highest
To gauge the current state of unemployment across all 50 states, we’ve zeroed in on the cities with the largest population in each state, along with the District of Columbia. The data from July 2024 was the most recently obtainable from the Bureau of Labor Statistics. Below is our list of ranked cities, beginning with the city that had the lowest rate of unemployment and moving to the highest.
50. Sioux Falls, South Dakota
After staying in the bottom five for unemployment among the nation’s cities for the last year, Sioux Falls reached the distinction of ranking lowest on our list at 1.6%. “South Dakota traditionally has a lower unemployment rate than the rest of the country,” explained an economics professor in a recent paper. But the state’s low rates throughout 2023 and 2024 (South Dakota showed a jobless rate of 2% in July) creates a “double-edged sword.” The super-tight labor market means economic growth can be difficult, warned the economist.
49. Burlington, Vermont
In July, the city of Burlington showed an unemployment rate of 1.9%, same as in June. The statewide unemployment rate was 2.1%. “There are nearly three job openings for every unemployed Vermonter,” according to the Vermont Department of Labor. Burlington is the industrial, tourist, and financial center of the state, with a population of 44,700. Burlington also has the distinction of being the least populous city in our list.
48. Fargo, North Dakota
Fargo, population 126,000, showed an unemployment rate of 2.3% in July 2024, while the state’s unemployment was 2.2%. One reason North Dakota has had such a low unemployment rate for years is because it is the fifth least-populated state in the United States. Fargo’s economy is based on education, the medical industry, agricultural equipment, and services.
47. Portland, Maine
Maine’s unemployment rate decreased from 3% in May to 2.8% in June and remains there in July. Unemployment has been below 4% for 30 consecutive months, the third longest period of such low rates for the state of Maine. The city of Portland’s was even lower at 2.3%. The state’s economic boom was driven mostly by the leisure and hospitality sector, which added the most jobs since Covid-19.
46. Huntsville, Alabama
The July 2024 jobless rate for Alabama of 2.8% continues the streak of low joblessness for the state. The unemployment rate of 2.7% for Huntsville makes it one of the country’s lowest for cities of its size. A metropolis of rapid growth, Huntsville’s leading sectors are aerospace, defense, information technology, bioscience, and advanced manufacturing.
45. Honolulu, Hawaii
With a population of 345,000, Honolulu had an unemployment rate of 2.8% in July, down from 3% in June. Job gains were seen in professional and business services, trade, transportation and utilities, and private education and health services. Overall, Hawaii had an unemployment rate of 2.9%, continuing its steady decrease in joblessness this year.
44. Manchester, New Hampshire
The state of New Hampshire continued to show low unemployment at 2.5% in July. The jobless rate of Manchester, population 115,000, increased to 2.9% in July, showing a sizable bump from 2.5% in June. The jobless rate is still very low, and that does create special challenges for employers, such as dealing with the size of the workforce, which is smaller in New Hampshire than it was before the Covid-19 pandemic.
43. Nashville, Tennessee
The city of Nashville has seen its unemployment rate drop more than a point over the last five months to 2.9% in July, with the state’s jobless rate coming in at 3%, one of the biggest decreases among all the states. The city is famous for music and entertainment, but healthcare and manufacturing are leading sectors as well. The city, population 1.3 million, is one of the fastest growing in America.
42. Jackson, Mississippi
With a population of 149,000, Jackson had a jobless rate of 2.9% in July, decreasing significantly from 3.3% in June. Jackson also has a lower average cost of living than the average for the U.S. Its major job sectors are advanced manufacturing, health care, information technology, and food processing. The state of Mississippi’s unemployment rate was 2.7%.
41. Cheyenne, Wyoming
With a jobless rate of 3.1%, Cheyenne’s economy is based on light manufacturing, agriculture, the military and government, tourism, and transportation. Cattle- and sheep-raising continue to thrive throughout the region too. The unemployment rate in Wyoming was 2.9% in July, pretty much unchanged for the last six months.
40. Omaha, Nebraska
In July, Nebraska continued its low unemployment rate of 3.2%. Nebraska’s low jobless rate is believed to be due to the dominance of industries like manufacturing and agriculture, which are less volatile than the energy or hospitality sectors. Omaha, population 487,000, had a jobless rate of 2.6%.
39. Des Moines, Iowa
The largest city in Iowa had a July 2024 jobless rate of 3.3%, compared to 3% in June. Iowa’s seasonally adjusted unemployment rate was 2.8% in July, unchanged from June and the same as one year ago.The state is recognized for its leading position in the agricultural sector, particularly corn, soybean, pork, and egg production.
38. Billings, Montana
The largest city in Montana showed an unemployment rate of 3.3% in July. Billings has a history of strength in agriculture and energy; more recently, it has focused on retail. Total employment and the number of people in the labor force were mostly unchanged in Montana in July, leading to no change in the unemployment rate of 3.1% since April.
37. Baltimore, Maryland
At 3.4%, Baltimore continues to rank low for unemployment, although it has increased since a low of 2.4% six months ago. Maryland also ranks among the lowest states in unemployment at 2.8%. What makes the achievement of the Baltimore metropolitan area particularly newsworthy is that for the last year it has consistently posted in the bottom 5 for joblessness among large U.S. metro areas with 1 million or more in population.
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36. Virginia Beach, Virginia
Virginia Beach has a jobless rate of 3.5%, edging up significantly from 2.4% three months ago. Real estate, defense, and tourism are major sectors of the city’s economy. The state has an overall jobless rate of 2.7%, lower than its largest city. According to household survey data in July, the labor force decreased by 4,066 (to 4,570,647) as the number of unemployed residents increased by 2,160 (to 124,643). The number of employed residents decreased by 6,226 (to 4,446,004).
35. Oklahoma City, Oklahoma
The largest city in Oklahoma hung in there with a low jobless rate of 3.5% in July. Oklahoma City has one of the world’s largest livestock markets, with oil, natural gas, and petroleum products as its largest sectors. As for the state, Oklahoma’s rate of 3.5% is part of a slow increase over the last six months.
34. Little Rock, Arkansas
Arkansas’s unemployment rate was 3.3% in July 2024, unchanged for the last four months. Little Rock, its largest city at 202,000 residents, showed a jobless rate of 3.6% in July 2024, up a bit from 3.4% in June. Healthcare is a leading sector in Little Rock, followed by manufacturing and construction.
33. Salt Lake City, Utah
Salt Lake City had a jobless rate in July 2024 of 3.6%, the same as in June. Known as the “Crossroads of the West,” the city’s major industries are government, trade, transportation, utilities, and professional and business services. The state’s unemployment rate is 3.2%.
32. Bridgeport, Connecticut
The unemployment rate in Bridgeport, population 148,000, came in at 3.6% in July, showing a major improvement since May 2024, when it was 4.4%. The state was at 3.6% in July as well. While some fled New York or New Jersey during the pandemic, Connecticut added 66,000 people in 2021. However, Bridgeport struggles, with some 19% of its residents living in poverty.
31. Boise, Idaho
With a population of 237,000, Boise had a jobless rate of 3.7% in July, inching up from 3.6% in June. The major economic drivers in the region include semiconductor and other computer product manufacturing, food product manufacturing, administrative and business support services, and construction. Statewide unemployment stood at 3.5%.
30. Milwaukee, Wisconsin
The state of Wisconsin had a jobless rate of 3% in July 2024, edging up from its unemployment rate low of 2.9% in June. Its largest city, Milwaukee, had an unemployment rate of 3.7%. The three sectors that comprise most of Milwaukee’s workforce are service sectors, manufacturing, and retail trade.
29. Minneapolis, Minnesota
The unemployment rate of 3.8% in July puts Minneapolis on a definite trajectory of increases, as the jobless rate was 2.6% in May. The Twin Cities’ industries are dominated by healthcare, finance, manufacturing, and technology. Minnesota’s unemployment rate was 2.9%.
28. Jacksonville, Florida
The largest city in Florida with a population of 954,000, Jacksonville had a jobless rate of 3.8% in July, edging up from 3.6% in June. The state of Florida showed an unemployment rate of 3.3% in July. It stands out as one of the states with the largest gains in employment (+222,200). Florida’s unemployment rate has remained lower than the national rate for 40 consecutive months.
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27. Atlanta, Georgia
Georgia’s largest city with a population of 496,000, Atlanta had a jobless rate of 3.8% in July, compared with 3.9% in June. Georgia’s unemployment rate was 3.4%. The sectors with the most job gains included accommodation and food services, health care and social assistance, arts, entertainment, recreation, and management of companies and enterprises.
26. Phoenix, Arizona
Phoenix, population 1.6 million, has seen its unemployment rate edge upward. It’s now at 3.9%, a full percentage point higher than in April 2024. One of the fastest-growing cities in America, Phoenix reached a record jobless high of 13.7% in April of 2020 and a record low of 2.5% in April of 1998. In the last 50 years, Phoenix’s economy has been powered by hospitality and leisure, but the city is also home to a growing number of high-tech, IT, renewable energy, and bioscience companies. Arizona had a 3.4% jobless rate in July.
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25. Anchorage, Alaska
Anchorage, the city with the largest population in Alaska, had a jobless rate of 4% in July 2024, down from 4.5% in June. Alaska often shows a relatively high unemployment rate. Over the last 40 years, the average unemployment rate in the United States has been 6.3%, while in Alaska, it averaged 7.9% since 1976. Therefore, the July rate of 4.5%, while higher than the national average, is low for this state.
24. Charleston, South Carolina
The July jobless rate of 4.2% for Charleston, population 151,000, is a significant increase from 2.4% in April. The rates are still much lower than in April 2020, when unemployment raged at 13%. The city’s economic strength is diverse, ranging from aerospace and life sciences to hospitality. The statewide unemployment rate was 3.9% in July 2024.
23. Charlotte, North Carolina
With a population of 879,000, Charlotte is home to corporations such as MetLife, NASCAR, Wells Fargo, Bank of America, and Lowe’s. Its unemployment rate was 4.2% in July, while the state’s jobless rate was 3.7%. Unemployment rates (not seasonally adjusted) increased in 83 of North Carolina’s counties in July 2024, decreased in three, and remained unchanged in 14.
22. Boston, Massachusetts
At 3.5%, Massachusetts showed low unemployment in July, but Boston’s unemployment moved up to 4.2%, up from 2.8% in April. The city is the economic engine and cultural hub of New England, with higher education, health care, and financial services as the major drivers. In a recent survey of cities most attractive to recent college graduates when considering job openings and affordability, Boston came in at number 12, making it the top city in the Northeast.
21. Kansas City, Missouri
Missouri had a jobless rate of 3.8% in July 2024, and Kansas City, its largest city, had a rate of 4.3%, up from 3.9% in June. The unemployment rate in Missouri reached a record high of 11.4% in April of 2020 and a record low of 2.1 in May of 2022. Kansas City is the third largest beef-processing city in America and has strong sectors in health care, tech, retail, and finance.
20. Denver, Colorado
Colorado’s jobless rate was 3.9% and Denver, its largest city, had a rate of 4.3%. Considered a magnet for work-from-home professionals, Denver is a fast-growing city, but one with housing costs that are 36% higher than the national average. Software and financial services are among its hottest industries. Aerospace, digital communications, and food and beverage sectors are also expanding.
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19. New Orleans, Louisiana
The July 2024 jobless rate of 4.4% in the Big Easy ticked down from 4.6% the previous month. And unemployment has come a long way since its alarming Covid-19 days of 20% in April 2020 and an April 2021 rate of 9%. As a tourist favorite and a major port on the Gulf Coast, New Orleans is considered an economic and commercial hub, and Louisiana’s 3.9% unemployment rate is considered low for the country.
18. Indianapolis, Indiana
The city of Indianapolis showed an unemployment rate of 4.4% in July. An economist said in 2023 that there were 5 job seekers for every 10 open positions in the state. Central Indiana’s life sciences and healthcare sector generates nearly $84 billion in total economic output. The state of Indiana showed a jobless rate of 4%.
17. Charleston, West Virginia
The city with the largest population in West Virginia has 46,700 people and had an unemployment rate of 4.4% in July, the same as in April. As it is the state capital, Charleston has government jobs as well as those in trade, utilities, education, and medicine. The chemical industry and the manufacturing sector are also significant. The jobless rate in West Virginia was 4.2% in July.
16. Portland, Oregon
Oregon’s unemployment stands at 4.1%, while Portland, its largest city, has a jobless rate of 4.4%. Seventeen counties in Oregon had unemployment rates at or below the statewide rate of 4.1% and nineteen had rates at or below the U.S. unemployment rate of 4.3%.
15. Columbus, Ohio
Ohio’s unemployment rate was 4.5% in July 2024. Columbus, its largest city, also clocked in at 4.5%. The number of workers unemployed in Ohio in July was 264,000, up from 254,000 in June. Overall, the number of unemployed has increased by 67,000 in the past 12 months from 197,000. The July unemployment rate for Ohio has increased 1.1 percentage points from 3.4% in July 2023.
14. Wichita, Kansas
The unemployment rate in Wichita, population 395,000, was 4.7% in July. Agriculture, manufacturing, healthcare, and energy drive the Wichita regional economy. The state of Kansas had a jobless rate of 3.2% in July, which is lower than the national unemployment average.
13. Wilmington, Delaware
Located midway between Washington, D.C. and New York City, Wilmington is Delaware’s largest city and its economic engine. Wilmington had an unemployment rate of 4.8% in July, a sizable increase from 3.7% in May. The state itself is at 4.1% unemployment.
12. Philadelphia, Pennsylvania
The unemployment rate for Philadelphia stood at 4.8% in July, up from 3.9% in April. The state of Pennsylvania ranked at 3.4% in July 2024. While that may not sound like one of the good news stories, Philadelphia’s jobless rate continues a record low for the state. This low unemployment bolsters the region’s ongoing recovery from the pandemic, which hit Philly hard and led to the loss of more than 100,000 jobs in the first two months of Covid-19 alone.
11. Houston, Texas
Houston’s July unemployment rate at 4.8% was higher than the state of Texas’ rate of 4.1%. Since June 2022, Texas employment grew by over 542,500 positions — the largest annual increase in the nation. The expanding ranks of the unemployed is believed to reflect an increase in the size of the metropolitan workforce rather than layoffs in the state, which has the second-highest population in the United States.
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10. Seattle, Washington
Seattle, population 733,000, was tracking well above the national unemployment rate with a jobless figure of 4.9% in July. Thousands of tech sector layoffs in the Seattle area have had an impact, but the city continues to support innovation.The state of Washington’s unemployment rate was also 4.9% in July.
9. Albuquerque, New Mexico
The largest city in New Mexico had a jobless rate of 5.1% in July, up from 4.5% in June. It’s still a long way down from its pandemic high of 10%. Albuquerque and the rest of the state are on a growth curve — the top three industries are oil drilling and gas extraction, scientific research and development, and hospitals. New Mexico’s unemployment rate was 4% in July.
8. Louisville, Kentucky
With an unemployment rate of 5.2% in July, Louisville is showing a sharp increase since June when its jobless rate was 4.5%. In just April, the jobless rate was 3.8%. Louisville, with a population of 628,000, is known for shipping and cargo and, more recently, for major manufacturing (with two Ford plants in the region) and health care. Kentucky’s jobless rate of 4.7% is higher than the national average.
7. Providence, Rhode Island
With a population of 189,000, Providence had a jobless rate of 5.2% in July and the state’s unemployment rate was 4.5%. About one-third of the city’s economy is based in trade, transportation, utilities, and educational and health services. The four Fortune 500 companies based in Rhode Island are CVS Heath, United Natural Foods, Textron, and Citizens Financial Group.
6. Newark, New Jersey
In July, the city’s unemployment rate was 5.6%, up from 5% in June. However, this is a marked decrease from a high of 9.7% in 2010. The city of Newark has a population of over 305,000, and some 25% of residents are living in poverty, according to U.S. Census data. The state’s jobless rate of 4.7% is above the national average.
5. New York, New York
The Big Apple had a jobless rate of 5.6% in July, rising a full percentage point since April’s rate of 4.6%. This makes it one of the cities on our list with an unemployment rate higher than the national average. However, New York City, with its population topping 8.4 million, also shows gains in employment four years after the start of Covid-19 lockdowns. New York State is estimated to have lost about 2 million jobs in the immediate wake of the pandemic. The state has a jobless rate of 4.3%.
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4. Chicago, Illinois
The July 2024 unemployment rate of 6.4% for the city was the same as the June jobless rate. The city and its suburbs are home to 35 Fortune 500 companies, with strengths in manufacturing, printing, insurance, transportation, financial trading, and food processing. Unfortunately, Illinois’s rate of 5.2% was one of the highest in the nation as well. The number of unemployed workers was 341,600, up 4.2% from the prior month, and up 19.4% from the same month one year ago.
3. Los Angeles, California
The city on our list with the second-highest population in America (at 3.9 million) had an unemployment rate of 6.5% in July, up from 5.9% in June. Both the city and the state of California have struggled since Covid-19. The state’s unemployment rate in July was 5.2%. Several factors are believed to contribute, including a mismatch between job skills among those who seek employment and what skills are needed.
2. Las Vegas, Nevada
Las Vegas, the largest city in Nevada, had the second-highest unemployment rate on our list at 6.7%, up from 6.2% in June 2024. Las Vegas shows a lot of turbulence in employment, with a high number of people in the workforce actively looking for jobs. Nevada’s rate was 5.1%. Ongoing recovery from the Covid pandemic and increases in short-term unemployment are contributing to Nevada having the highest unemployment rate in the nation, a state economist says.
1. Detroit, Michigan
The unemployment rate of 8.2% in Detroit in July 2024 was the highest on our list, and showed one of the largest increases month over month in the country, up from 6.2% in June. The city has gone through a rough economic ride, starting well before Covid-19: Detroit experienced a 61% decrease in population from 1950 to 2010, lowering its ranking from the 4th most populous city in America to the 27th. Detroit’s jobless rate was an eye-popping 27% in June 2009. The state of Michigan’s jobless rate was 4.3% in July, the same as the national average.
Notable Mention: Washington, D.C.
The nation’s capital of Washington, D.C., population 712,000, showed an unemployment rate of 6.3% in July, which is one of the highest for any large city in America.
What Factors Affect Unemployment Rate?
Unemployment is a key measure of the health of the American economy and considerable resources are put into analyzing it. There are many different reasons for unemployment. Apart from the common causes found in any economy — a worker leaving for another job or being fired — there is cyclical unemployment and structural unemployment.
Cyclical unemployment is caused by economic downturns or is related to changes in business conditions. As the name indicates, it can be temporary. After a recession ends, unemployment typically falls.
Structural unemployment is different. It usually means there is a mismatch between the jobs available and the skill levels of the unemployed. Technological changes, a lack of relevant skills, and jobs moving overseas cause structural unemployment.
Structural unemployment can be hard for a society to deal with — it produces permanent disruptions in the economy and obviously a lot of stress among the people who want to work but can’t get a job.
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How Does a Low Unemployment Rate Affect the Economy?
The problem of high unemployment seems far away indeed. A reasonable unemployment rate is somewhere between 3% and 5%. The current rate of unemployment means that the economy is producing near its full capacity, maximizing output, and driving wage growth.
However, the labor market can reach a point where each additional job added does not create enough productivity to cover its cost. This causes an output gap, or “slack,” in the labor market. The economy is in danger of becoming “overheated.”
How Does Unemployment Affect Small Businesses?
An increasing demand for labor coupled with a falling unemployment rate can result in wage inflation. With fewer people available to work, employers have to increase wages to attract and hold onto talent. While that’s pleasant for the workers, some businesses can’t afford to pay a lot more. The money that might go to growing the business has to go toward payroll.
Also, when there are more jobs than there are people with the necessary skills and experience, employees may begin feeling overwhelmed and stressed. Small businesses typically have less money to funnel toward training and recruitment. This is a time when small businesses may turn to debt financing, whether it’s seeking a small business loan or looking for investors.
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The Takeaway
The national unemployment rate of 4.3% is edging higher after two years of markedly low unemployment, according to the Bureau of Labor Statistics. The cities of Detroit, Las Vegas, Los Angeles, and Chicago all show jobless rates of more than 6%.
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