State Unemployment by Race and Ethnicity

Disparities by race and ethnicity persist amid labor market uncertainty

Key numbers • 2026 Q3

S.C. Highest Black-white unemployment ratio 2.9-to-1
P.A. Highest Hispanic-white unemployment ratio 2.6-to-1
U.S. National Black-white unemployment ratio 2.1-to-1
U.S. National Hispanic-white unemployment ratio 1.4-to-1

2026 Q3 • Updated October 2026

The third quarter of 2026 saw persistent racial inequality in unemployment rates across states

By Ismael Cid-Martinez and Stevie Marvin 

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 third quarter of 2026.

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 versus 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 measures of state-specific conditions than those calculated in states with larger sample sizes. The full methodological update is detailed in our technical report.1

Third-quarter 2026 state unemployment rates, trends, and ratios 

The third quarter of 2026 was characterized by weak job growth, higher inflation, and a rise in the federal funds rate, all of which compound the disadvantages that workers of color face in the labor market

The national unemployment rate for all workers for the third quarter of 2026 dropped to 4.1%. This figure is slightly lower than that of the previous quarter (4.3%) and below the 2025 annual average of 4.3%. During this third quarter, twenty-three states (including Washington, D.C.) saw overall unemployment rates above 4%.

Washington, D.C., once again had the highest overall unemployment rate at 5.7%. This figure is marginally lower than the 6.1% recorded in the second quarter of the year. Five states (including D.C.) had overall unemployment rates at 5% or higher in the third quarter. North and South Dakota had the lowest overall unemployment rates at 2.2% and 2.0% respectively.

Overall unemployment rates 2026 Q3

Highest: D.C. (5.7%)

Lowest: S.D. (2.0%)

National: 4.1%

Overall unemployment rates across states saw little improvement through the third quarter of 2026. For instance, in Pennsylvania, Rhode Island, and South Carolina, the unemployment rate only declined by about half of a percentage point between the second and third quarters of the year. The absence of significant improvements is explained by the weak performance of the labor market in the months of July, August, and September. In October 2026, for example, the Bureau of Labor Statistics published downward revisions to payroll employment for both July and August. Employment in both months combined was revised down by 60,000 jobs. Job growth remained subdued in September as well, moving at a slower pace than the monthly average of the previous 12 months.

During this period, inflation also accelerated, with headline PCE inflation rising from 3.3% in July to 3.7% in September, leading the Federal Open Market Committee to raise the federal funds rate by 25 basis points for the first time in over three years. Overall, the combined effects of weak job growth, rising inflation, and higher interest rates will continue to compound the disadvantages that workers of color face in the labor market.

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2026 Q3

State All White Black Hispanic AAPI
United States 4.1% 3.3% 6.8% 4.8% 3.7%
Alabama 3.4% 2.3% 5.9% 4.0%* 3.1%*
Alaska 4.3% 3.2% 7.1%* 4.5%* 3.7%*
Arizona 4.9% 3.3% 7.5%* 6.5% 4.8%*
Arkansas 3.9% 3.0% 7.9% 4.6%* 3.5%*
California 5.1% 4.5% 9.4% 5.4% 4.0%
Colorado 4.0% 4.0% 6.4%* 4.2% 3.6%*
Connecticut 5.1% 3.5% 8.6%* 7.5% 4.6%*
Delaware 4.7% 3.9% 6.4% 5.5%* 4.2%*
Florida 4.5% 3.7% 8.0% 3.8% 4.3%*
Georgia 3.3% 2.3% 4.3% 3.9%* 2.9%*
Hawaii 2.7% 2.7% 4.5%* 3.8%* 2.2%
Idaho 3.6% 3.4% 5.9%* 4.7% 3.2%*
Illinois 4.7% 3.5% 9.0% 5.0% 4.2%
Indiana 3.3% 2.7% 6.8% 3.9%* 3.0%*
Iowa 3.2% 2.4% 6.6%* 3.7%* 2.9%*
Kansas 3.8% 3.2% 6.2%* 4.8%* 3.4%*
Kentucky 4.7% 4.0% 8.3% 5.4%* 4.2%*
Louisiana 4.2% 2.6% 6.3% 5.5% 3.8%*
Maine 3.2% 2.9% 5.3%* 3.7%* 2.9%*
Maryland 4.1% 3.4% 6.4% 4.3%* 3.7%*
Massachusetts 4.3% 3.7% 5.9% 7.1% 3.9%
Michigan 5.0% 3.9% 10.6% 5.9% 4.5%*
Minnesota 4.4% 3.7% 7.6%* 5.1%* 3.9%*
Mississippi 3.4% 2.6% 5.1% 4.0%* 3.1%*
Missouri 3.6% 3.1% 5.6% 4.1%* 3.2%*
Montana 3.2% 3.1% 5.2%* 3.7%* 2.8%*
Nebraska 2.9% 2.7% 4.8%* 3.5%* 2.6%*
Nevada 4.8% 4.8% 5.3% 5.0% 3.6%
New Hampshire 2.7% 2.5% 4.5%* 3.2%* 2.5%*
New Jersey 4.3% 3.5% 6.0% 4.4% 4.7%
New Mexico 4.7% 3.7% 6.5%* 5.3% 4.2%*
New York 4.3% 3.4% 6.5% 6.0% 3.0%
North Carolina 3.5% 2.7% 6.0% 2.4% 3.1%*
North Dakota 2.2% 1.7% 3.6%* 2.5%* 2.0%*
Ohio 3.4% 2.8% 6.3% 3.8%* 3.0%*
Oklahoma 4.3% 3.8% 7.3%* 3.9% 3.8%*
Oregon 5.1% 4.2% 8.4%* 6.6% 4.9%*
Pennsylvania 3.7% 3.0% 5.8% 7.8% 3.4%*
Rhode Island 3.7% 2.8% 6.2%* 4.7% 3.4%*
South Carolina 4.1% 2.7% 7.8% 4.7%* 3.7%*
South Dakota 2.0% 1.3% 3.3%* 2.3%* 1.8%*
Tennessee 3.4% 2.7% 7.5% 3.6%* 3.1%*
Texas 4.4% 3.6% 7.2% 4.5% 3.4%
Utah 3.5% 3.5% 5.8%* 4.1% 3.2%*
Vermont 2.6% 2.4% 4.3%* 3.0%* 2.3%*
Virginia 3.6% 2.6% 7.0% 3.9% 3.2%*
Washington 4.9% 4.4% 7.8%* 5.5% 4.9%
Washington D.C. 5.7% 3.5% 9.0% 7.6% 5.1%*
West Virginia 4.0% 4.0% 6.7%* 4.6%* 3.6%*
Wisconsin 3.2% 2.7% 6.1%* 3.9%* 2.9%*
Wyoming 3.0% 2.9% 5.0%* 3.9% 2.7%*
Economic Policy Institute

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.

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Third-quarter 2026 trends among white workers 

Every state had a white unemployment rate below 5% in the third quarter of 2026. Seven states had white unemployment rates at 4% or higher. In ascending order, these states are Colorado (4.0%), Kentucky (4.0%), West Virginia (4.0%), Oregon (4.2%), Washington (4.4%), California (4.5%), and Nevada with an unemployment rate of 4.8%. Twenty-three states had white unemployment rates at or below 3%. The national unemployment rate for white workers remained at 3.3% in the third quarter of 2026, largely unchanged from the first quarter. No state saw a change in its white unemployment rate of more than one percentage point in either direction.

White unemployment rates 2026 Q3

Highest: Nev. (4.8%)

Lowest: S.D. (1.3%)

National: 3.3%

Third-quarter 2026 trends among Black workers 

Most states (44, including D.C.) saw Black unemployment rates at or above 5% in the third quarter of 2026. Michigan continues to record the highest Black unemployment rate, at 10.6%. Georgia once again had the lowest Black unemployment rate in the third quarter among states with large-enough Black worker populations for precise estimates, at 4.3%. South Dakota had the lowest-estimated Black unemployment rate at 3.3%, though this estimate is less precise given the limited sample size.

The national unemployment rate for Black workers fell marginally from 7.2% in the second quarter to 6.8% in the third quarter. Nevada recorded the largest decline in Black unemployment, with a 3 percentage point drop in their Black unemployment rate between the second (8.4%) and third quarter (5.3%) of 2026. Other states where the Black unemployment rate fell by more than one percentage point during this period include Delaware, Maryland, Missouri, New York, Pennsylvania, Rhode Island, and West Virginia. The estimates for both Rhode Island and West Virginia are weighted to account for the small sample size of Black workers in those states.

While the national unemployment rate for Black workers fell during the third quarter, some states experienced a worsening situation. In Alabama and California, for example, the Black unemployment rate rose by half of a percentage point or more, reaching 5.9% and 9.4% respectively.

Black unemployment rates 2026 Q3

Highest: Mich. (10.6%); Calif. (9.4%)

Lowest: S.D.* (3.3%); N.D.* (3.6%); Ga. (4.3%) 

National: 6.8%

The national Black-white unemployment ratio for 2026 Q3 remains at 2.1-to-1. This means that across the nation, Black workers were over twice as likely to be unemployed as white workers. South Carolina recorded the highest Black-white unemployment ratio, near 3-to-1. South Carolina was followed by Tennessee and Iowa, both of which recorded a similar ratio of 2.8-to-1. Our estimates for Iowa are weighted to account for the small sample size of Black workers in the state.  

Nevada recorded the lowest Black-white unemployment ratio (at 1.1-to-1), given the significant decline in the state’s Black unemployment rate between the second and third quarter (see above for more details). Overall, Black workers were twice as likely or more to be unemployed than their white peers in 26 states, including Washington, D.C.

Black-white unemployment ratios 2026 Q3

Highest: .S.C. (2.9-to-1); Iowa*, Tenn. (2.8-to-1)

Lowest: Nev. (1.1-to-1)

National: 2.1-to-1

Third-quarter 2026 trends among Hispanic workers

The Hispanic unemployment rate dropped only slightly from 5% in second quarter of 2026 to 4.8% in the third quarter. Pennsylvania and Washington, D.C., continued to have the highest Hispanic unemployment rates this quarter, at 7.8% and 7.6% respectively. South Dakota had the lowest Hispanic unemployment rate at 2.3%, but its Hispanic worker sample size is small. North Carolina had the lowest Hispanic unemployment rate among those states with large-enough sample size of Hispanic workers for precise estimates. Only North Carolina, North Dakota, and South Dakota had Hispanic unemployment rates below 3%. As noted above, our estimates for the Dakotas are weighted to account for the small sample size of Hispanic workers.

Connecticut continued to see the greatest increase in the Hispanic unemployment rate, increasing by 0.7 percentage points to 7.5% through the third quarter. On the other hand, two states saw improvements greater than 1 percentage point. In both Colorado and Rhode Island, the Hispanic unemployment rate fell by 1.5 and 1.4 percentage points respectively. The Hispanic unemployment rate in both states stood below 5% in the third quarter of 2026.  

Hispanic unemployment rates 2026 Q3

Highest: Pa. (7.8%); D.C. (7.6%)

Lowest: S.D.* (2.3%); N.C. (2.4%)

National: 4.8%

The Hispanic–white unemployment ratio decreased slightly from 1.5-to-1 in the second quarter of 2026 to 1.4-to-1 in the third quarter, meaning Hispanic workers were 40% more likely to be unemployed than white workers nationwide. Hispanic workers were twice as likely or more than white workers to be unemployed in Arizona (2.0-to-1); Connecticut and Louisiana (2.1-to-1); Washington, D.C. (2.2-to-1); and Pennsylvania (2.6-to-1). The Hispanic and white unemployment rates equalized in four states in the third quarter—Colorado, Florida, Nevada, and Oklahoma. North Carolina had the lowest Hispanic-to-white unemployment rate at 0.9-to-1, meaning Hispanic workers in North Carolina were slightly more likely to be employed than white workers.

Hispanic-white unemployment ratios 2026 Q3

Highest: Pa. (2.6-to-1); D.C. (2.2-to-1)

Lowest:  N.C. (0.9-to-1) ; Colo., Fla., Nev., and Okla. (1-to-1) 

National: 1.4-to-1

Third-quarter 2026 trends among Asian American and Pacific Islander (AAPI) workers

The national AAPI unemployment rate for the third quarter of 2026 was 3.7%, largely unchanged from the previous quarter. During this period, the AAPI unemployment rate was highest in Washington, D.C., at 5.1%, though D.C. has a small AAPI worker sample that does not allow for precise estimates. Washington state had the highest AAPI unemployment rate among those states with sufficient AAPI sample sizes, at 4.9%. South Dakota had the lowest AAPI unemployment rate, at 1.8%, though its sample size of AAPI workers is small. Among states with a large-enough sample size for precise estimates, Hawaii had the lowest AAPI unemployment rate in the third quarter at 2.2%.

AAPI unemployment rates 2026 Q3

Highest: D.C* (5.1%); Ore.*, Wash. (4.9%)

Lowest: S.D.* (1.8%); N.D.* (2.0%); Hawaii (2.2%)

National: 3.7%

Table 1

Change in state unemployment rates by race and ethnicity from 2024 Q4 to 2026 Q3 (percentage points)

State All White Black Hispanic AAPI
United States 0.0 -0.0 0.5 -0.4 -0.0
Alabama 0.3 -0.4 1.8 0.1* 0.3*
Alaska -0.3 0.6 0.1* -0.6* -0.1*
Arizona 0.9 0.0 2.2* 1.8 1.1*
Arkansas 0.3 -0.4 3.1 0.2* 0.2*
California -0.3 -0.4 1.5 -0.8 0.1
Colorado -0.3 0.4 -0.6* -1.6 -0.3*
Connecticut 1.7 0.5 3.7* 3.0 1.5*
Delaware 0.7 1.1 0.9 0.2* 0.7*
District of Columbia 0.2 1.1 -1.5 0.9 0.2*
Florida 1.0 1.0 2.5 0.3 1.0*
Georgia -0.2 -0.1 -0.6 -0.1* -0.1*
Hawaii 0.1 -0.7 0.4* 0.3* -0.1
Idaho -0.0 -0.2 0.3* 0.8 -0.0*
Illinois -0.1 -0.1 2.0 -2.1 -0.3
Indiana -0.7 -0.6 0.1 -1.6* -0.7*
Iowa -0.3 -0.5 1.3* -0.7* -0.2*
Kansas 0.1 0.0 0.2* -0.3* 0.1*
Kentucky -0.2 0.6 -1.1 -0.7* -0.2*
Louisiana -0.2 -0.4 -0.3 -0.2 -0.2*
Maine -0.0 -0.2 0.3* -0.4* -0.0*
Maryland 0.7 0.9 1.8 -0.0* 0.6*
Massachusetts 0.2 -0.1 -0.3 1.9 0.5
Michigan -0.2 -0.6 1.8 -0.3 -0.2*
Minnesota 1.1 1.0 2.5* 1.0* 1.0*
Mississippi -0.3 -0.2 -0.0 -0.7* -0.2*
Missouri -0.2 -0.0 -0.6 -0.6* -0.2*
Montana 0.3 0.6 0.8* 0.0* 0.2*
Nebraska 0.1 0.4 0.4* -0.8* 0.1*
Nevada -0.6 -0.2 -1.4 -0.7 -0.5
New Hampshire -0.2 -0.2 0.0* -0.5* -0.1*
New Jersey -0.5 -0.4 -1.9 -0.1 -0.4
New Mexico 0.5 1.0 0.3* 1.3 0.5*
New York 0.2 0.4 -0.8 0.4 -0.1
North Carolina -0.2 -0.4 -0.1 -1.2 -0.2*
North Dakota -0.3 -0.2 -0.2* -0.6* -0.3*
Ohio -1.3 -0.9 -3.7 -1.9* -1.2*
Oklahoma 1.2 0.8 2.9* 0.2 1.0*
Oregon 0.6 0.2 1.4* 0.9 0.7*
Pennsylvania -0.2 -0.4 -0.0 -0.8 -0.2*
Rhode Island -0.8 -1.5 -0.8* -1.0 -0.7*
South Carolina -0.2 -0.3 0.6 -0.7* -0.2*
South Dakota 0.1 -0.2 0.4* -0.1* 0.1*
Tennessee -0.2 -0.1 1.1 -0.7* -0.1*
Texas 0.3 0.7 0.6 -0.0 -0.7
Utah 0.2 0.6 0.7* -0.4 0.2*
Vermont 0.1 -0.0 0.4* -0.1* 0.1*
Virginia 0.5 0.3 1.5 0.4 0.4*
Washington 0.6 0.5 1.2* -1.2 1.3
West Virginia 0.1 0.1 0.6* -0.3* 0.1*
Wisconsin 0.1 0.2 -0.1* -0.5* 0.1*
Wyoming -0.3 0.0 -0.1* -0.6 -0.3*
Economic Policy Institute

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.

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Table 2

Black-white and Hispanic-white state unemployment rate ratios, 2026 Q3

State Black-white ratio Hispanic-white ratio
United States 2.1 1.4
Alabama 2.5 1.7*
Alaska 2.2* 1.4*
Arizona 2.2* 2.0
Arkansas 2.7 1.6*
California 2.1 1.2
Colorado 1.6* 1.0
Connecticut 2.4* 2.1
Delaware 1.6 1.4*
District of Columbia 2.6 2.2
Florida 2.1 1.0
Georgia 1.9 1.7*
Hawaii 1.7* 1.4*
Idaho 1.8* 1.4
Illinois 2.6 1.4
Indiana 2.5 1.5*
Iowa 2.8* 1.6*
Kansas 1.9* 1.5*
Kentucky 2.1 1.4*
Louisiana 2.4 2.1
Maine 1.8* 1.3*
Maryland 1.9 1.3*
Massachusetts 1.6 1.9
Michigan 2.7 1.5
Minnesota 2.1* 1.4*
Mississippi 1.9 1.5*
Missouri 1.8 1.3*
Montana 1.7* 1.2*
Nebraska 1.8* 1.3*
Nevada 1.1 1.0
New Hampshire 1.8* 1.3*
New Jersey 1.7 1.2
New Mexico 1.8* 1.5
New York 1.9 1.8
North Carolina 2.3 0.9
North Dakota 2.2* 1.5*
Ohio 2.3 1.4*
Oklahoma 1.9* 1.0
Oregon 2.0* 1.6
Pennsylvania 1.9 2.6
Rhode Island 2.2* 1.7
South Carolina 2.9 1.8*
South Dakota 2.5* 1.7*
Tennessee 2.8 1.3*
Texas 2.0 1.2
Utah 1.7* 1.2
Vermont 1.8* 1.3*
Virginia 2.7 1.5
Washington 1.8* 1.2
West Virginia 1.7* 1.2*
Wisconsin 2.3* 1.5*
Wyoming 1.7* 1.3
Economic Policy Institute

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.

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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 details about 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.

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