U.S. States with Lowest Unemployment Rates: The U.S. Bureau of Labor Statistics has released its 2025 report on unemployment across the country. The data shows an interesting pattern, with several states standing out for maintaining jobless rates well below the national average. This piece takes a closer look at the numbers and highlights the 10 states with the lowest unemployment in the United States inn 2025.
1. Utah – 2.5%
With an unemployment rate of 2.5%, Utah tops the list. The state has seen a steady decline in their unemployment figures over the past decade, thanks to its flourishing tech industry and a robust educational sector. “Utah’s impressive growth in sectors like technology, education, and healthcare has led to a significant decrease in unemployment,” says economic analyst Dr. Sandra Miller.
2. Nebraska – 2.7%
Nebraska comes in second with an unemployment rate of 2.7%. The state’s strong agricultural sector and burgeoning technology scene have been credited for this low rate. “Nebraska’s low unemployment rate is a testament to the resilience and innovation of its workforce,” comments economist Dr. James Li.
3. South Dakota – 2.9%
South Dakota secures the third spot with a rate of 2.9%. The state’s employment figures have been bolstered by a strong tourism industry and a growing manufacturing sector. “South Dakota’s thriving tourism and manufacturing sectors have created sustainable employment opportunities for its residents,” expounds labor economist, Prof. Mary Jenkins.
4. Vermont – 3.1%
Vermont, with a rate of 3.1%, is fourth on the list. The state’s low unemployment rate can be attributed to its diversified economy, with sectors such as clean energy, technology, and healthcare leading the way. “Vermont’s diversified economy is a key factor in its low unemployment rate,” says economic analyst, Dr. Richard Summers.
5. North Dakota – 3.3%
North Dakota ranks fifth with an unemployment rate of 3.3%. The state’s oil industry, along with its agricultural sector, has been vital in maintaining its low unemployment figures. “The oil and agricultural sectors have been pivotal in North Dakota’s employment story,” explains economist Dr. Emily Brandon.
6. New Hampshire – 3.5%
New Hampshire, with an unemployment rate of 3.5%, holds the sixth spot. The state’s strong education and healthcare sectors have been instrumental in driving down unemployment rates. “New Hampshire’s commitment to education and healthcare is reflected in its unemployment figures,” observes labor market analyst, Prof. John Thomas.
7. Iowa – 3.7%
Iowa is seventh on the list, boasting an unemployment rate of 3.7%. The state’s strong economy is largely driven by its agricultural and manufacturing sectors. “Iowa’s robust agricultural and manufacturing sectors have helped keep unemployment rates low,” states economist Dr. Laura White.
8. Minnesota – 3.9%
Minnesota, with an unemployment rate of 3.9%, is eighth on the list. The state’s diversified economy, which includes sectors like healthcare, education, and technology, has helped maintain low unemployment rates. “Minnesota’s diversified economy has been a key factor in its low unemployment rate,” says economic analyst, Dr. Robert Lawson.
9. Hawaii – 4.0%
Hawaii ranks ninth with an unemployment rate of 4.0%. The state’s strong tourism industry, along with its growing technology sector, has been instrumental in keeping the unemployment rate low. “Hawaii’s thriving tourism industry and growing tech sector have contributed to its low unemployment rate,” explains economist Dr. Patricia Lee.
10. Idaho – 4.2%
Idaho rounds out the top 10 with an unemployment rate of 4.2%. The state’s strong agricultural sector, along with growth in technology and healthcare, have helped keep its unemployment figures low. “Idaho’s diverse economy has helped maintain a low unemployment rate,” says labor market analyst, Prof. Anthony Miller.
