The national unemployment rate remained unchanged at 4.2 percent in April, even as jobless rates increased in 26 states and the District of Columbia compared to the same month last year, the U.S. Bureau of Labor Statistics reported Wednesday.
Only three states and the District saw monthly unemployment increases in April, while just two states recorded decreases. The remaining 45 states showed little change from March, suggesting labor market stability across most of the country despite year-over-year concerns.
Mixed employment picture emerges across regions
South Dakota maintained the nation’s lowest unemployment rate at 1.8 percent, while the District of Columbia recorded the highest at 5.8 percent. Nevada followed closely with 5.6 percent unemployment.
The data reveals a tale of two trends: short-term stability with longer-term deterioration. While most states saw little month-to-month change, the national unemployment rate sits 0.3 percentage points higher than April 2024.
Mississippi and Michigan experienced the largest year-over-year increases, jumping 1.2 and 1.1 percentage points respectively. Montana was the only state to see unemployment decrease compared to last year, dropping 0.3 percentage points.
Job growth concentrated in five states
Nonfarm payroll employment increased in just five states during April, with 45 states and the District showing essentially no change. Texas led job creation with 37,700 new positions, followed by Ohio with 22,200 new jobs.
North Carolina added 18,100 jobs, Arizona gained 14,200 positions, and Connecticut rounded out the growth states with 6,900 new jobs. All five states recorded 0.3 to 0.4 percent monthly employment growth.
Annual employment gains show regional patterns
Over the past year, 16 states posted significant employment increases while 34 states and the District showed little change. Texas again topped the list with 215,500 new jobs, followed by Florida with 144,100 and New York with 114,300.
When measured by percentage growth, Hawaii led with 2.7 percent annual job growth, followed by South Carolina at 2.4 percent and Idaho at 2.3 percent.
Labor market signals mixed messages for employers
The April data presents a complex picture for HR leaders and employers. While the headline unemployment rate suggests stability, the year-over-year increases in most states indicate underlying softening in labor market conditions.
Nineteen states recorded unemployment rates below the national average of 4.2 percent, while six states plus the District exceeded it. Twenty-five states fell within the margin of error of the national rate.
The concentration of job growth in just five states during April suggests uneven economic activity across the country, potentially creating regional challenges for talent acquisition and retention strategies.
Regional variations demand targeted strategies
States showing the most significant deterioration from last year include traditional manufacturing centers like Michigan and Ohio, as well as southern states like Mississippi and Alabama. This pattern may reflect broader economic shifts affecting different industries and regions.
For employers, the data suggests continued competition for talent in states with low unemployment rates like South Dakota, North Dakota, and Vermont, all below 3 percent. Meanwhile, opportunities for recruitment may be expanding in states with higher jobless rates.
The Bureau of Labor Statistics will release metropolitan area employment data for April on May 28, followed by state employment figures for May on June 24.
