We break it down and make it easy to explore the May 2025 U.S. unemployment trends by state and city. Find out which areas have the highest and lowest jobless rates and what’s driving these labor market changes in cities like Sioux Falls, El Centro, and more.
📊 May 2025 Labor Market Overview
The latest employment data from the U.S. Department of Labor reveals an uneven national job market with pockets of robust economic growth — and regions still struggling with post-pandemic stagnation or industry-specific downturns.
From booming Midwest metros to California’s Central Valley struggles, the data offers a valuable map of where Americans are working — and where they aren’t.
🟢 Top 5 States With the Lowest Unemployment Rates
State
South Dakota
North Dakota
New Hampshire
Vermont
Utah
Unemployment Rate
1.8%
2.0%
2.2%
2.2%
2.3%
Why It’s Low
Strong diversification in healthcare, finance, and small business.
Energy and agriculture are driving job stability.
Healthcare and education growth anchor employment.
Small population with consistent government hiring.
Booming tech corridor and logistics hub in Salt Lake City.
🔴 Top 5 States With the Highest Unemployment Rates
State
Dist. of Columbia
California
Nevada
Illinois
New York
Unemployment Rate
5.9%
5.2%
5.1%
4.8%
4.5%
Why It’s High
Layoffs in professional services and slow tourism recovery.
Agricultural, retail, and tech industry instability.
Casino and hospitality sectors remain below pre-pandemic levels.
Financial and manufacturing job losses continue in urban cores.
Persistent unemployment in service-heavy metro areas.
🏙 20 Cities With the Lowest Unemployment Rates
City
Sioux Falls, SD
Fargo, ND-MN
Logan, UT-ID
Provo-Orem, UT
Manchester, NH
Burlington-South Burlington, VT
Ames, IA
Lincoln, NE
Iowa City, IA
Columbia, MO
State College, PA
Rochester, MN
Bismarck, ND
Madison, WI
Lafayette-West Lafayette, IN
Ann Arbor, MI
Salt Lake City, UT
Des Moines-West Des Moines, IA
Concord, NH
Jefferson City, MO
Unemployment Rate
1.5%
1.6%
1.7%
1.9%
1.9%
2.0%
2.0%
2.1%
2.1%
2.2%
2.2%
2.2%
2.2%
2.3%
2.3%
2.4%
2.4%
2.4%
2.5%
2.5%
Why It’s Low
Healthcare and financial services are booming.
Strong regional economic base.
Education and tech create consistent demand.
Silicon Slopes tech hub drives job creation.
High healthcare employment.
College town and government stability.
Anchored by Iowa State University.
Manufacturing and stable public sector jobs.
Health and education sectors dominate.
Higher ed and healthcare employment.
Driven by Penn State employment.
Mayo Clinic is a massive local employer.
Energy sector resilience.
Tech and public sector balance.
Purdue University and research growth.
R&D and education anchor workforce.
High demand in logistics, finance, and software.
Insurance capital with growing fintech scene.
Government hiring and small business base.
Public sector keeps jobs steady.
🔴 20 Cities With the Highest Unemployment Rates
City
El Centro, CA
Yuma, AZ
Visalia-Porterville, CA
Merced, CA
Bakersfield, CA
Hanford-Corcoran, CA
Fresno, CA
Madera, CA
McAllen-Edinburg-Mission, TX
Stockton, CA
Salinas, CA
Atlantic City-Hammonton, NJ
Detroit-Warren-Dearborn, MI
Flint, MI
Redding, CA
Modesto, CA
Shreveport-Bossier City, LA
San Bernardino, CA
Brownsville-Harlingen, TX
New Orleans-Metairie, LA
Unemployment Rate
16.3%
11.1%
8.5%
8.3%
7.6%
7.2%
6.8%
6.6%
6.3%
6.1%
6.0%
5.9%
5.8%
5.7%
5.6%
5.6%
5.5%
5.4%
5.3%
5.2%
Why It’s High
Agriculture-dependent with little economic diversity.
Seasonal agricultural jobs dominate.
Limited non-farm job creation.
Poverty and low industrial diversification.
Volatile oil sector and housing challenges.
Reliant on corrections and farming, both shrinking.
Still recovering from service sector layoffs.
Agricultural sector dominates.
Trade, health access, and border issues impact jobs.
Distribution and warehousing layoffs.
Agriculture seasonality drags overall numbers.
Gambling revenue still below expectations.
EV transition impacts auto manufacturing jobs.
Lingering effects of industrial decline.
Wildfires and housing affordability limit job recovery.
Agricultural and warehouse-driven market.
Energy sector slowdown continues.
Warehousing contraction and low wage job loss.
Lack of diversified industries limits options.
Slow rebound in tourism and entertainment.
🧠 DAVRON Expert Commentary: What the Data Tells Us
📈 The Winners
States like Utah, South Dakota, and New Hampshire are shining examples of regions that invested in economic diversity, education, and business development. Cities like Sioux Falls, Provo, and Fargo benefit from a combination of innovation, affordability, and strong institutions.
📉 The Losers
California’s Central Valley, parts of Arizona, South Texas, and Louisiana continue to struggle with high joblessness. Many of these areas rely on seasonal work, single-industry economies, or have faced post-pandemic structural shifts they haven’t adapted to.