State Unemployment by Race and Ethnicity
A stable and resilient labor market across groups for now, despite the trade war and attacks on federal workers
Key numbers • 2025 Q1
2025 Q1 • Updated April 2025
Trump inherited a strong economy and labor market, and they have remained resilient over the first quarter of 2025. But we have yet to see the full effects of his trade war and attacks on federal workers
EPI analyzes national and state unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps on a quarterly basis to generate a consistent sample to create reliable and precise estimates of unemployment rates by race and ethnicity at the state level.
We report estimates for all states and subgroups, flagging those for which constructed unemployment rates are heavily weighted by national level data with an asterisk (*) (see methodological note). The following analysis contains data on the first quarter of 2025.
Methodological note
As of 2022 Q2, EPI has updated its methodology for constructing state-level unemployment rates and ratios by race/ethnicity, with the goal of providing a more consistent set of states for analysis from quarter to quarter. The new methodology uses a longer time horizon of state-level unemployment data from the Current Population Survey (12 months vs. 6 months) and leverages national-level data to better represent state-level race groupings that traditionally have been dropped from the analysis due to low sample size. As a result of this methodological change, reports in this series from 2022 Q2 forward are not directly comparable with reports prior to 2022 Q2.
In contrast to previous reports, all states now have listed unemployment rates for each of the four analyzed groups for every quarter. However, those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis and are noted as such with an asterisk (*). These estimates should be interpreted with caution as they may be less precise or representative of state-specific conditions than those calculated in states with larger sample sizes. The full methodological update is detailed in our technical report.1
First-quarter 2025 state unemployment rates, trends, and ratios
The first quarter of Trump’s second term saw a barrage of executive actions that cut federal employment, and the beginnings of a trade war that threatens the strong labor market Trump inherited, but employment remains stable across groups for now.
The labor market for workers across groups remained relatively stable throughout the first quarter of 2025, the first quarter of Trump’s second term in office. The national unemployment rate remained at 4.1%, unchanged from 2024 Q4. Nevada had the highest unemployment rate once again at 5.8%, followed by California; Michigan; and Washington, D.C., all at 5.4%. South Dakota had the lowest unemployment rate at 1.9% and was once again the only state with an overall unemployment rate below 2%. No state saw changes in their overall unemployment rate of more than 1 percentage point between the fourth quarter of 2024 and the first quarter of 2025.
Overall unemployment rates 2025 Q1
Highest: Nev. (5.8%); Calif., D.C., Mich. (5.4%)
Lowest: S.D. (1.9%)
National: 4.1%
While the labor market remains resilient for now, the Trump administration has enacted several policies that jeopardize prospects for continued stability in employment through the rest of the year. The administration’s Department of Government Efficiency has gutted federal agencies, reducing federal staff by tens of thousands, including planned cuts to the Department of Health and Human Services of 20,000. Trump has also introduced a suite of erratic and exorbitant tariffs on imports from virtually every country in the world, including tariffs on goods from China of well over 100%. These policies introduce real uncertainty into the market and set the stage for reductions in aggregate demand, conditions that could bring on a recession. Trump’s harmful policy actions threaten to undo progress toward reducing inflation, narrowing racial employment gaps, and strengthening wage growth, particularly for lower-wage workers.
State unemployment rates, by race/ethnicity and overall, 2025 Q1
State | All | White | Black | Hispanic | AAPI |
---|---|---|---|---|---|
United States | 4.1% | 3.3% | 6.2% | 5.1% | 3.7% |
Alabama | 3.3% | 2.8% | 4.3% | 4.1%* | 2.9%* |
Alaska | 4.7% | 2.5% | 7.2%* | 5.2%* | 3.9%* |
Arizona | 4.0% | 3.2% | 5.0%* | 5.0% | 3.4%* |
Arkansas | 3.6% | 3.3% | 5.0% | 4.4%* | 3.2%* |
California | 5.4% | 4.9% | 7.6% | 6.1% | 3.9% |
Colorado | 4.7% | 3.9% | 7.7%* | 6.7% | 4.2%* |
Connecticut | 3.4% | 2.9% | 4.7%* | 4.9% | 3.1%* |
Delaware | 3.7% | 2.6% | 4.9% | 4.9%* | 3.3%* |
Florida | 3.6% | 3.0% | 5.6% | 3.4% | 3.2%* |
Georgia | 3.6% | 2.6% | 5.0% | 4.2%* | 3.2%* |
Hawaii | 3.0% | 3.9% | 4.5%* | 3.8%* | 2.5% |
Idaho | 3.7% | 3.6% | 5.7%* | 4.2% | 3.3%* |
Illinois | 4.8% | 3.5% | 7.5% | 7.1% | 4.4% |
Indiana | 4.3% | 3.5% | 6.8% | 5.6%* | 3.8%* |
Iowa | 3.3% | 3.0% | 4.9%* | 4.1%* | 3.0%* |
Kansas | 3.8% | 3.3% | 6.0%* | 5.0%* | 3.4%* |
Kentucky | 5.3% | 3.9% | 9.5% | 6.6%* | 4.7%* |
Louisiana | 4.4% | 3.3% | 6.3% | 5.5% | 4.0%* |
Maine | 3.5% | 3.5% | 5.3%* | 4.4%* | 3.1%* |
Maryland | 3.0% | 2.1% | 4.3% | 3.8%* | 2.7%* |
Massachusetts | 4.3% | 3.8% | 6.9% | 6.0% | 3.9% |
Michigan | 5.4% | 4.4% | 10.0% | 7.0% | 4.8%* |
Minnesota | 3.0% | 2.4% | 4.9%* | 3.8%* | 2.7%* |
Mississippi | 3.8% | 2.8% | 5.4% | 4.7%* | 3.4%* |
Missouri | 3.7% | 3.1% | 6.3% | 4.6%* | 3.3%* |
Montana | 2.8% | 2.5% | 4.2%* | 3.4%* | 2.5%* |
Nebraska | 2.9% | 2.3% | 4.5%* | 4.3%* | 2.6%* |
Nevada | 5.8% | 5.2% | 7.9% | 6.1% | 4.1% |
New Hampshire | 3.0% | 2.7% | 4.6%* | 3.7%* | 2.7%* |
New Jersey | 4.6% | 3.8% | 6.8% | 4.7% | 4.9% |
New Mexico | 4.4% | 2.3% | 6.0%* | 4.6% | 3.9%* |
New York | 4.3% | 3.3% | 7.0% | 6.0% | 3.0% |
North Carolina | 3.7% | 3.0% | 5.8% | 3.7% | 3.3%* |
North Dakota | 2.6% | 2.0% | 4.0%* | 3.2%* | 2.3%* |
Ohio | 4.7% | 3.8% | 9.0% | 5.7%* | 4.2%* |
Oklahoma | 3.3% | 3.4% | 4.4%* | 3.8% | 2.9%* |
Oregon | 4.5% | 4.1% | 6.8%* | 5.8% | 3.9%* |
Pennsylvania | 3.8% | 3.4% | 5.3% | 7.0% | 3.4%* |
Rhode Island | 4.7% | 4.5% | 7.2%* | 5.9% | 4.2%* |
South Carolina | 4.2% | 2.9% | 6.9% | 5.2%* | 3.7%* |
South Dakota | 1.9% | 1.4% | 2.8%* | 2.3%* | 1.7%* |
Tennessee | 3.7% | 3.0% | 6.8% | 4.3%* | 3.3%* |
Texas | 4.1% | 2.9% | 6.5% | 4.3% | 4.2% |
Utah | 3.2% | 2.9% | 4.8%* | 4.0% | 2.8%* |
Vermont | 2.6% | 2.4% | 4.0%* | 3.2%* | 2.3%* |
Virginia | 3.1% | 2.2% | 5.6% | 3.5% | 2.9%* |
Washington | 4.4% | 3.9% | 6.5%* | 6.7% | 3.8% |
Washington D.C. | 5.4% | 2.6% | 9.9% | 6.8% | 4.9%* |
West Virginia | 3.9% | 3.9% | 6.0%* | 4.9%* | 3.5%* |
Wisconsin | 3.2% | 2.5% | 5.8%* | 4.6%* | 2.9%* |
Wyoming | 3.5% | 3.1% | 5.3%* | 4.7% | 3.1%* |
Notes: AAPI stands for Asian American and Pacific Islander. Unemployment rates for each demographic group are produced from a weighted average of state and national unemployment trends. Those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis. See methodological note for more detail.
Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.
First-quarter 2025 trends among white workers
Forty-five states, and Washington, D.C., had white unemployment rates below 4% in the first quarter of 2025. Nevada and California continued to have the highest unemployment rates for white workers, at 5.2% and 4.9% respectively. Five states had white unemployment rates above 4%: Oregon, Michigan, Rhode Island, California, and Nevada in ascending order. South and North Dakota had the lowest white unemployment rates, at 1.4% and 2% respectively. The national white unemployment rate once again remained unchanged from the previous quarter, at 3.3%.
White unemployment rates 2025 Q1
Highest: Nev. (5.2%) ,Calif. (4.9%)
Lowest: S.D. (1.4%),
National: 3.3%
First-quarter 2025 trends among Black workers
Michigan; Washington, D.C.; and Kentucky had the highest Black unemployment rates in the country in the first quarter of 2025, at 10%, 9.9%, and 9.5% respectively. Among the states with large enough Black sample sizes for precise estimation, Alabama and Maryland had the lowest Black unemployment rates at 4.3% (though, as we have noted in the past, these two states’ low Black unemployment rates represent very different labor market conditions). South Dakota once again had the lowest Black unemployment rate across all states at 2.8%, though the small Black worker population there makes that estimate less precise. Black unemployment rates increased in Michigan and Mississippi. Nationally, the Black unemployment rate fell to 6.2%, from 6.4% in the previous quarter.
Black unemployment rates 2025 Q1
Highest: Mich. (10%), D.C.(9.9%), Ky. (9.5%)
Lowest: S.D.* (2.8%); Ala., Md. (4.3%)
National: 6.2%
The national Black-white unemployment ratio for 2025 Q1 remained at 1.9-to-1. Washington, D.C., continues to hold the highest Black-white unemployment ratio for the first quarter of the year, though that ratio fell to 3.9-to-1, lower than it has been since 2020 Q4. This is due to both the white unemployment rate in D.C. increasing slightly (by 0.2 percentage points over the quarter) and the Black unemployment rate falling (by 0.8 percentage points). Alabama, Arkansas, and Nevada had the lowest Black-white unemployment ratios among states with large enough Black workers populations for precise estimates at 1.5-to-1. Hawaii maintained its position as having the lowest Black-white unemployment ratio at 1.2-to-1 but has a relatively small Black worker sample size. There are no states where Black and white workers are equally likely to be employed.
Black-white unemployment ratios 2025 Q1
Highest: D.C. (3.9-to-1)
Lowest: Hawaii* (1.2-to-1); Ala., Ark., Nev. (1.5-to-1)
National: 1.9-to-1
First-quarter 2025 trends among Hispanic workers
The first quarter of 2025 saw one state with Hispanic unemployment rates above 7.0% (Illinois, at 7.1%), down from three states in the previous quarter. Florida and Virginia had the lowest Hispanic unemployment rates among states with sufficient sample sizes for precise estimates, at 3.4% and 3.5% respectively. South Dakota continued to have the lowest Hispanic unemployment rate among all the states at 2.3%, though its Hispanic worker sample size is small. Three states—Colorado, Connecticut, and Michigan—saw increases of 1 percentage point or more in their Hispanic unemployment rates from the previous quarter. Nationally, the Hispanic unemployment rate fell from 5.2% to 5.1%.
Hispanic unemployment rates 2025 Q1
Highest: Ill. (7.1%); Mich., Pa. (7.0%)
Lowest: S.D.* (2.3%), Fla. (3.4%), Va.(3.5%)
National: 5.1%
In the first quarter of 2025 the nationwide Hispanic–white unemployment ratio fell to 1.5-to-1, meaning Hispanic workers overall were 50% more likely to face unemployment than their white counterparts. D.C. continued to have the highest Hispanic-white unemployment ratio at 2.7-to-1. Hispanic and white unemployment rates were essentially equal in Florida and Oklahoma, with both at 1.1-to-1. Hawaii once again had employment parity between the Hispanic and white workers surveyed, though the Hispanic worker sample size in Hawaii is relatively small.
Hispanic-white unemployment ratios 2025 Q1
Highest: D.C. (2.7-to-1)
Lowest: Hawaii* (1-to-1); Fla, Okla. (1.1-to-1)
National: 1.5-to-1
First-quarter 2025 trends among Asian American and Pacific Islander (AAPI) workers
New Jersey continued to have the highest AAPI unemployment rate among states with large enough AAPI worker populations for precise estimation, at 4.9%. D.C. and Michigan had the highest AAPI unemployment rates among states with low sample sizes of AAPI workers, at 4.9% and 4.8% respectively. Hawaii continued to have the lowest AAPI unemployment rate among states with sufficient sample sizes, at 2.5%, and South Dakota maintained the lowest overall AAPI unemployment rate, at 1.7%, though it has a relatively small sample size. Nationally, the AAPI unemployment rate maintained its position from the previous two quarters, at 3.7%. More than half of states saw slight increases (less than 1 percentage point) in their AAPI unemployment rates between the last quarter of 2024 and the first quarter of 2025.
AAPI unemployment rates 2025 Q1
Highest: D.C*, N.J. (4.9%); Mich.* (4.8%)
Lowest: S.D.* (1.7%), Hawaii (2.5%)
National: 3.7%
Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2025 Q1 (percentage points)
State | All | White | Black | Hispanic | AAPI |
---|---|---|---|---|---|
United States | 0.3 | 0.2 | -0.0 | 0.5 | 0.6 |
Alabama | 0.0 | -0.0 | -0.4 | 0.2* | 0.4* |
Alaska | -0.7 | -0.9 | -1.6* | -0.6* | 0.0* |
Arizona | -0.9 | -0.7 | -2.5* | -0.3 | -0.8* |
Arkansas | -0.3 | -0.3 | -1.3 | 0.1* | 0.1* |
California | 0.6 | 1.1 | 1.1 | 0.7 | -0.3 |
Colorado | 1.5 | 1.1 | 3.0* | 2.7 | 1.7* |
Connecticut | -0.4 | -0.5 | -1.5* | 0.3 | 0.1* |
Delaware | -0.4 | -0.3 | -2.7 | 0.4* | 0.1* |
District of Columbia | -0.2 | 0.5 | -1.7 | 2.5 | 0.4* |
Florida | 0.2 | 0.4 | -0.7 | 0.2 | 0.9* |
Georgia | -0.0 | 0.2 | -1.0 | 0.1* | 0.4* |
Hawaii | 0.8 | 1.6 | 1.0* | 1.0* | 0.6 |
Idaho | 0.9 | 1.0 | 1.1* | 0.5 | 1.1* |
Illinois | 0.6 | 0.2 | -1.2 | 2.4 | 1.5 |
Indiana | 0.8 | 0.4 | 1.8 | 1.4* | 1.1* |
Iowa | 0.6 | 0.8 | -0.2* | 0.9* | 0.9* |
Kansas | 0.7 | 0.5 | 0.7* | 1.3* | 1.0* |
Kentucky | 1.2 | -0.1 | 3.1 | 1.7* | 1.5* |
Louisiana | -0.9 | -0.2 | -2.6 | -1.3 | -0.3* |
Maine | 0.3 | 0.6 | 0.1* | 0.5* | 0.6* |
Maryland | -0.4 | -0.7 | -0.4 | -0.2* | 0.0* |
Massachusetts | 1.2 | 0.9 | 2.7 | 1.7 | 2.0 |
Michigan | 1.6 | 1.0 | 3.2 | 2.5 | 1.9* |
Minnesota | -0.5 | -0.8 | -0.7* | -0.4* | -0.0* |
Mississippi | -2.0 | -0.5 | -4.6 | -2.2* | -1.1* |
Missouri | 0.3 | 0.0 | 0.6 | 0.5* | 0.6* |
Montana | -0.7 | -0.7 | -1.5* | -0.7* | -0.3* |
Nebraska | -0.5 | -0.4 | -1.2* | -0.2* | -0.1* |
Nevada | 0.5 | 0.2 | -0.6 | 1.5 | -1.1 |
New Hampshire | 0.4 | 0.2 | 0.4* | 0.7* | 0.7* |
New Jersey | 0.6 | 0.6 | 0.4 | 0.0 | 1.2 |
New Mexico | -1.1 | -1.7 | -2.6* | -1.5 | -0.4* |
New York | 0.1 | -0.4 | 0.5 | 0.7 | 1.1 |
North Carolina | -0.2 | -0.0 | 0.0 | -1.9 | 0.3* |
North Dakota | 0.3 | -0.0 | 0.3* | 0.5* | 0.5* |
Ohio | 0.1 | 0.1 | 0.9 | -0.4* | 0.6* |
Oklahoma | 0.1 | 0.8 | -1.1* | -0.0 | 0.5* |
Oregon | 0.9 | 0.7 | 1.0* | 1.8 | 0.7* |
Pennsylvania | -0.8 | -0.5 | -3.4 | 0.4 | -0.2* |
Rhode Island | 1.1 | 1.4 | 1.3* | 0.5 | 1.4* |
South Carolina | 1.3 | 0.4 | 3.0 | 1.7* | 1.4* |
South Dakota | -0.6 | 0.0 | -1.2* | -0.6* | -0.3* |
Tennessee | 0.2 | 0.2 | 0.2 | 0.3* | 0.5* |
Texas | 0.1 | 0.1 | 0.4 | -0.6 | 1.4 |
Utah | 0.7 | 0.4 | 0.7* | 1.3 | 0.9* |
Vermont | 0.4 | 0.2 | 0.3* | 0.6* | 0.6* |
Virginia | 0.1 | -0.3 | 1.6 | -0.3 | 0.4* |
Washington | -0.1 | -0.2 | -0.3* | 1.1 | 0.5 |
West Virginia | -1.4 | -1.1 | -2.7* | -1.4* | -0.7* |
Wisconsin | 0.1 | 0.1 | -0.1* | 0.6* | 0.4* |
Wyoming | -1.1 | -0.8 | -2.2* | 0.1 | -0.5* |
Notes: Unemployment rates for each demographic group are produced from a weighted average of state and national unemployment trends. Those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis, and are noted as such with an asterisk (*). See methodological note for more detail.
Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.
Black-white and Hispanic-white state unemployment rate ratios, 2025 Q1
State | Black-white ratio | Hispanic-white ratio |
---|---|---|
United States | 1.9 | 1.5 |
Alabama | 1.5 | 1.5* |
Alaska | 2.9* | 2.1* |
Arizona | 1.6* | 1.5 |
Arkansas | 1.5 | 1.3* |
California | 1.6 | 1.2 |
Colorado | 2.0* | 1.7 |
Connecticut | 1.6* | 1.7 |
Delaware | 1.9 | 1.9* |
District of Columbia | 3.9 | 2.7 |
Florida | 1.8 | 1.1 |
Georgia | 1.9 | 1.6* |
Hawaii | 1.2* | 1.0* |
Idaho | 1.6* | 1.2 |
Illinois | 2.1 | 2.0 |
Indiana | 1.9 | 1.6* |
Iowa | 1.7* | 1.4* |
Kansas | 1.8* | 1.5* |
Kentucky | 2.5 | 1.7* |
Louisiana | 1.9 | 1.7 |
Maine | 1.5* | 1.3* |
Maryland | 2.1 | 1.8* |
Massachusetts | 1.8 | 1.6 |
Michigan | 2.3 | 1.6 |
Minnesota | 2.0* | 1.5* |
Mississippi | 1.9 | 1.7* |
Missouri | 2.0 | 1.5* |
Montana | 1.7* | 1.4* |
Nebraska | 1.9* | 1.9* |
Nevada | 1.5 | 1.2 |
New Hampshire | 1.7* | 1.4* |
New Jersey | 1.8 | 1.2 |
New Mexico | 2.6* | 2.0 |
New York | 2.2 | 1.8 |
North Carolina | 1.9 | 1.2 |
North Dakota | 2.0* | 1.6* |
Ohio | 2.4 | 1.5* |
Oklahoma | 1.3* | 1.1 |
Oregon | 1.7* | 1.4 |
Pennsylvania | 1.6 | 2.1 |
Rhode Island | 1.6* | 1.3 |
South Carolina | 2.4 | 1.8* |
South Dakota | 2.0* | 1.6* |
Tennessee | 2.3 | 1.5* |
Texas | 2.2 | 1.5 |
Utah | 1.7* | 1.4 |
Vermont | 1.6* | 1.3* |
Virginia | 2.6 | 1.6 |
Washington | 1.7* | 1.7 |
West Virginia | 1.5* | 1.3* |
Wisconsin | 2.3* | 1.8* |
Wyoming | 1.7* | 1.5 |
Notes: Unemployment rates for each demographic group are produced from a weighted average of state and national unemployment trends. Those states and demographic groups with typically small sample sizes require a heavier weighting of national-level data to supplement their analysis, and are noted as such with an asterisk (*). See methodological note for more detail.
Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.
Methodology
The unemployment rate estimates in this report are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics (BLS). The overall state unemployment rates are taken directly from the LAUS. CPS 12-month ratios are applied to LAUS data to calculate the rates by race and ethnicity. For each state subgroup, we calculate the unemployment rate using the past 12 months of CPS data. We then find the ratio of this subgroup rate to the state (or national) unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.
We also leverage national-level data to construct weighted unemployment ratios, utilizing a greater share of national-level data for states with a high amount of volatility in race/ethnicity sample sizes. This allows for more consistent reporting of unemployment rates for Black, Hispanic, and AAPI workers. For more detail on our methodology, see the technical report.
Notes
1. Marokey Sawo and Daniel Perez, Detailing the New Methodology Behind EPI’s Quarterly State Unemployment Rates by Race and Ethnicity Series, Economic Policy Institute, December 2022.
Read more:
- State unemployment by race and ethnicity, 2024 Q4
- State unemployment by race and ethnicity, 2024 Q3
- State unemployment by race and ethnicity, 2024 Q2
- State unemployment by race and ethnicity, 2024 Q1
- State unemployment by race and ethnicity, 2023 Q4
- State unemployment by race and ethnicity, 2023 Q3
- State unemployment by race and ethnicity, 2023 Q2
- State unemployment by race and ethnicity, 2023 Q1
- State unemployment by race and ethnicity, 2022 Q4
- State unemployment by race and ethnicity, 2022 Q2 & Q3