State Unemployment by Race and Ethnicity

Signs of labor market softening amid significant delays in data availability due to the government shutdown

Key numbers • 2025 Q3

M.D. Highest Black-white unemployment ratio 3.1-to-1
P.A. Highest Hispanic-white unemployment ratio 2.6-to-1
U.S. National Black-white unemployment ratio 1.9-to-1
U.S. National Hispanic-white unemployment ratio 1.5-to-1

2025 Q3 • Updated December 2025

The third quarter of 2025 saw a government shutdown-induced delay of important labor market data, and signs of softening

By Kyle K. Moore 

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 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 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 2025 state unemployment rates, trends, and ratios 

There were significant delays in labor market data for the third quarter of 2025 due to the longest government shutdown in U.S. history. Amid broad uncertainty, the labor market shows signs of softening, particularly for Black workers.

The overall labor market did not improve through the third quarter of 2025, as state unemployment by race rose slightly across groups. The national unemployment rate rose to 4.3% in the third quarter, from 4.2% in the second quarter. Washington, D.C., saw the highest unemployment rate in the country at 6.1%, while South Dakota saw the lowest rate at 1.9%. No state saw an overall change of more than one percentage point between the second and third quarters.

Overall unemployment rates 2025 Q3

Highest: D.C. (6.1%)

Lowest:  S.D. (1.9%)

National: 4.3%

The delay in labor market and economic growth data availability, as well as the complete absence of unemployment data for the month of October, sets a worrying precedent for transparency and accountability in economic policy. Policymakers need accurate and timely data to judge the effectiveness of policy, and to chart a path toward closing labor market disparities. Uncertainty also limits growth, as it makes it more difficult for both workers and employers to make forward-looking investment decisions. The available data suggest that Black workers’ employment prospects have deteriorated over the year, signaling early signs of a potential economic downturn.

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2025 Q3

State All White Black Hispanic AAPI
United States 4.3% 3.5% 6.7% 5.2% 3.8%
Alabama 2.9% 2.4% 3.9% 3.5%* 2.6%*
Alaska 4.7% 2.8% 7.3%* 5.4%* 3.7%*
Arizona 4.1% 3.3% 5.6%* 5.1% 3.7%*
Arkansas 3.8% 2.9% 7.0% 4.6%* 3.4%*
California 5.5% 5.2% 8.5% 6.3% 3.6%
Colorado 4.3% 3.4% 6.6%* 6.3% 3.8%*
Connecticut 3.8% 3.0% 5.9%* 5.1% 3.4%*
Delaware 4.3% 3.0% 6.6% 5.4%* 3.8%*
Florida 3.8% 3.5% 5.8% 3.2% 3.4%*
Georgia 3.4% 2.3% 5.3% 3.6%* 3.0%*
Hawaii 2.6% 2.8% 4.1%* 3.2%* 2.4%
Idaho 3.7% 3.6% 5.7%* 4.1% 3.3%*
Illinois 4.5% 3.4% 8.0% 5.2% 4.2%
Indiana 3.6% 3.1% 5.5% 4.6%* 3.2%*
Iowa 3.7% 3.3% 5.8%* 4.6%* 3.3%*
Kansas 3.8% 3.0% 6.1%* 5.0%* 3.4%*
Kentucky 4.8% 3.9% 8.4% 5.8%* 4.2%*
Louisiana 4.4% 3.4% 5.9% 6.0% 3.9%*
Maine 3.2% 3.0% 5.0%* 3.9%* 2.8%*
Maryland 3.6% 2.0% 6.1% 4.3%* 3.2%*
Massachusetts 4.8% 4.0% 7.3% 7.6% 4.4%
Michigan 5.2% 4.3% 8.9% 7.2% 4.6%*
Minnesota 3.6% 2.8% 5.9%* 4.4%* 3.2%*
Mississippi 3.9% 2.9% 5.4% 4.7%* 3.4%*
Missouri 4.1% 3.3% 7.5% 5.0%* 3.6%*
Montana 2.9% 2.6% 4.5%* 3.5%* 2.6%*
Nebraska 3.0% 2.4% 4.6%* 4.4%* 2.7%*
Nevada 5.3% 4.2% 9.4% 6.0% 3.5%
New Hampshire 3.0% 2.7% 4.7%* 3.7%* 2.7%*
New Jersey 5.0% 4.2% 7.3% 5.9% 4.6%
New Mexico 4.1% 2.8% 5.7%* 4.6% 3.7%*
New York 4.1% 2.9% 7.5% 5.2% 3.3%
North Carolina 3.7% 3.1% 5.6% 3.5% 3.3%*
North Dakota 2.5% 2.0% 3.9%* 3.1%* 2.2%*
Ohio 4.9% 4.3% 8.6% 5.4%* 4.4%*
Oklahoma 3.1% 3.0% 4.6%* 3.5% 2.8%*
Oregon 5.0% 4.5% 7.8%* 6.3% 4.7%*
Pennsylvania 4.0% 3.2% 6.7% 8.5% 3.6%*
Rhode Island 4.6% 4.1% 7.2%* 6.8% 4.1%*
South Carolina 4.3% 3.0% 6.5% 5.2%* 3.8%*
South Dakota 1.9% 1.4% 3.0%* 2.4%* 1.7%*
Tennessee 3.6% 2.9% 6.8% 4.4%* 3.2%*
Texas 4.1% 3.0% 5.8% 4.5% 3.9%
Utah 3.3% 3.0% 5.2%* 4.2% 3.0%*
Vermont 2.5% 2.4% 3.9%* 3.1%* 2.2%*
Virginia 3.6% 3.0% 4.5% 3.9% 3.5%*
Washington 4.5% 4.3% 6.7%* 6.3% 3.3%
Washington D.C. 6.1% 3.6% 9.9% 7.5% 5.4%*
West Virginia 3.8% 3.6% 7.0%* 4.7%* 3.4%*
Wisconsin 3.1% 2.4% 6.0%* 4.1%* 2.8%*
Wyoming 3.3% 3.0% 5.1%* 4.0% 2.9%*

 

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 2025 trends among white workers 

Forty-one states and Washington, D.C., saw white unemployment rates below 4% in the third quarter of 2025. California had the highest white unemployment rate at 5.2%. Only nine states had white unemployment rates at or above 4% in the third quarter. South Dakota maintained the lowest white unemployment rate at 1.4%, followed by North Dakota and Maryland at 2%. No state saw a change in the white unemployment rate of more than one percentage point. The national unemployment rate for white workers was 3.5%.

White unemployment rates 2025 Q3

Highest: Calif. (5.2%)

Lowest: S.D. (1.4%)

National: 3.5%

Third-quarter 2025 trends among Black workers 

Washington, D.C., maintained the highest Black unemployment rate in the third quarter at 9.9%, followed by Nevada at 9.4%. Alabama once again had the lowest Black unemployment rate among states with large enough sample sizes for precise estimation, at 3.9%. South Dakota’s 3% was the lowest Black unemployment rate across states, though the Black worker population there makes estimation less precise. Black unemployment rose by one percentage point or more in five states (in ascending order: Delaware, New Jersey, Pennsylvania, Missouri, and Nevada) and fell by more than one percentage point in Michigan. Nationally, the Black unemployment rate rose by half a percentage point in the third quarter, from 6.2% to 6.7%.

Black unemployment rates 2025 Q3

Highest: D.C. (9.9%), Nev. (9.4%)

Lowest: S.D.* (3.0%); Ala. (3.9%) 

National: 6.7%

The national Black-white unemployment ratio for 2025 Q3 remained relatively unchanged, at 1.9-to-1, slightly up from 1.8-to-1 in the second quarter. Washington, D.C.’s Black-white unemployment ratio once again fell to its lowest level in the series thus far, to 2.8-to-1 in the third quarter from 3.4-to-1 in the second quarter. This drop doesn’t reflect an improvement in Black unemployment but rather an increase in white unemployment in the district, with the white unemployment rate rising by 0.6 percentage points in the third quarter (the largest white increase across the country).

Rising unemployment in Washington, D.C., and in the metro DMV area (D.C., Maryland, and Virginia) more broadly, is being driven by the Trump administration’s significant cutting of the federal workforce. Maryland had the highest Black-white unemployment ratio at 3.1-to-1. Amongst the states with large enough worker sample sizes for precise estimates, Virginia had the lowest Black-white unemployment ratio in the third quarter, at 1.5-to-1. Hawaii had a lower ratio, at 1.4-to-1, but the Black worker sample size there is small. There were no states where Black and white workers were equally likely to be unemployed in the third quarter of 2025.

Black-white unemployment ratios 2025 Q3

Highest: Md. (3.1-to-1), D.C. (2.8-to-1)

Lowest: Hawaii* (1.4-to-1), Va. (1.5-to-1)

National: 1.9-to-1

Third-quarter 2025 trends among Hispanic workers

Hispanic unemployment rates were at or above 6.0% in 10 states and Washington, D.C., in the third quarter of 2025. Pennsylvania had the highest Hispanic unemployment rate at 8.5% and also saw the largest increase in Hispanic unemployment at a 1.2 percentage point increase in the third quarter. Florida had the lowest Hispanic unemployment rate amongst states with a sufficient Hispanic worker population for precise estimates, at 3.2%, while South Dakota had the lowest rate across all states at 2.4%. Illinois saw the largest drop in Hispanic unemployment in the third quarter, a 1.1 percentage point decrease from 6.3% to 5.2%.  Nationally, the Hispanic unemployment rate remained largely unchanged at 5.2%.

Hispanic unemployment rates 2025 Q3

Highest: Pa. (8.5%)

Lowest: S.D.* (2.4%), Fla.(3.2%)

National: 5.2%

In the third quarter of 2025, the nationwide Hispanic-white unemployment ratio remained at 1.5-to-1. Pennsylvania saw the highest Hispanic-white unemployment ratio at 2.6-to-1. Florida had a Hispanic-white unemployment ratio of slightly below parity, at 0.9-to-1—this means that, in the third quarter, Hispanic workers in Florida were slightly less likely to be unemployed than white workers. North Carolina was close to Hispanic-white unemployment parity as well, at a ratio of 1.1-to-1.

Hispanic-white unemployment ratios 2025 Q3

Highest: Pa. (2.6-to-1)

Lowest:  Fla. (0.9-to-1)

National: 1.5-to-1

Third-quarter 2025 trends among Asian American and Pacific Islander (AAPI) workers

The third-quarter AAPI unemployment rate amongst states with large enough sample sizes for precise estimation was highest in New Jersey, at 4.6%. D.C. had the highest AAPI unemployment rate across all states without accounting for sample size, at 5.4%. Hawaii had the lowest AAPI unemployment rate among states with sufficient sample sizes, at 2.4%, while South Dakota maintained the lowest rate across all states at 1.7%. No state saw a change in the AAPI unemployment rate greater than one percentage point, suggesting relative stability. This is reflected in the relatively unchanged national AAPI unemployment rate moving to 3.8% from 3.7% in the third quarter. 

AAPI unemployment rates 2025 Q3

Highest: D.C* (5.4%), N.J. (4.6%)

Lowest: S.D.* (1.7%), Hawaii (2.4%)

National: 3.8%

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2025 Q3 (percentage points)

 

State All White Black Hispanic AAPI
United States 0.5 0.3 0.4 0.7 0.8
Alabama -0.4 -0.4 -0.8 -0.4* -0.0*
Alaska -0.6 -0.6 -1.4* -0.4* -0.2*
Arizona -0.7 -0.6 -1.9* -0.2 -0.4*
Arkansas -0.2 -0.7 0.7 0.4* 0.3*
California 0.8 1.3 1.9 0.8 -0.5
Colorado 1.1 0.6 1.9* 2.3 1.3*
Connecticut -0.0 -0.4 -0.3* 0.6 0.4*
Delaware 0.2 0.1 -1.0 0.9* 0.6*
District of Columbia 0.4 1.6 -1.7 3.1 0.9*
Florida 0.5 0.9 -0.4 0.1 1.0*
Georgia -0.2 -0.1 -0.7 -0.4* 0.2*
Hawaii 0.5 0.5 0.5* 0.5* 0.5
Idaho 0.9 0.9 1.1* 0.5 1.1*
Illinois 0.3 0.0 -0.7 0.5 1.3
Indiana 0.1 -0.1 0.5 0.4* 0.5*
Iowa 1.0 1.1 0.7* 1.3* 1.2*
Kansas 0.7 0.2 0.7* 1.3* 0.9*
Kentucky 0.7 -0.0 2.0 0.9* 1.0*
Louisiana -0.9 -0.1 -3.1 -0.9 -0.3*
Maine 0.0 0.1 -0.3* 0.1* 0.3*
Maryland 0.2 -0.8 1.4 0.3* 0.5*
Massachusetts 1.7 1.1 3.0 3.3 2.5
Michigan 1.4 0.9 2.1 2.7 1.7*
Minnesota 0.1 -0.5 0.3* 0.2* 0.4*
Mississippi -1.9 -0.4 -4.6 -2.1* -1.1*
Missouri 0.6 0.2 1.8 0.9* 0.9*
Montana -0.6 -0.7 -1.2* -0.6* -0.2*
Nebraska -0.5 -0.4 -1.0* -0.1* -0.1*
Nevada 0.1 -0.8 1.0 1.3 -1.7
New Hampshire 0.5 0.2 0.5* 0.6* 0.7*
New Jersey 1.0 0.9 0.8 1.1 0.9
New Mexico -1.3 -1.3 -2.9* -1.5 -0.6*
New York -0.1 -0.7 0.9 -0.2 1.4
North Carolina -0.2 0.0 -0.1 -2.1 0.2*
North Dakota 0.3 -0.0 0.2* 0.4* 0.5*
Ohio 0.4 0.6 0.5 -0.6* 0.8*
Oklahoma -0.0 0.4 -0.8* -0.3 0.3*
Oregon 1.5 1.0 2.0* 2.3 1.5*
Pennsylvania -0.6 -0.6 -2.0 1.9 -0.0*
Rhode Island 1.0 1.1 1.3* 1.4 1.3*
South Carolina 1.4 0.5 2.6 1.7* 1.5*
South Dakota -0.5 -0.0 -1.0* -0.6* -0.2*
Tennessee 0.1 0.1 0.2 0.4* 0.5*
Texas 0.0 0.2 -0.3 -0.4 1.2
Utah 0.8 0.5 1.1* 1.5 1.0*
Vermont 0.3 0.1 0.3* 0.4* 0.5*
Virginia 0.6 0.5 0.5 0.2 1.1*
Washington 0.0 0.2 -0.1* 0.6 0.1
West Virginia -1.4 -1.4 -1.7* -1.6* -0.7*
Wisconsin 0.0 -0.1 0.0* 0.2* 0.3*
Wyoming -1.3 -1.0 -2.5* -0.6 -0.7*
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, 2025 Q3

 

State Black-white ratio Hispanic-white ratio
United States 1.9 1.5
Alabama 1.6 1.5*
Alaska 2.7* 2.0*
Arizona 1.7* 1.5
Arkansas 2.4 1.6*
California 1.6 1.2
Colorado 1.9* 1.9
Connecticut 2.0* 1.7
Delaware 2.2 1.8*
District of Columbia 2.8 2.1
Florida 1.6 0.9
Georgia 2.3 1.6*
Hawaii 1.4* 1.2*
Idaho 1.6* 1.2
Illinois 2.4 1.5
Indiana 1.8 1.5*
Iowa 1.7* 1.4*
Kansas 2.0* 1.7*
Kentucky 2.1 1.5*
Louisiana 1.7 1.8
Maine 1.6* 1.3*
Maryland 3.1 2.2*
Massachusetts 1.8 1.9
Michigan 2.1 1.7
Minnesota 2.1* 1.6*
Mississippi 1.9 1.6*
Missouri 2.3 1.5*
Montana 1.8* 1.4*
Nebraska 2.0* 1.9*
Nevada 2.2 1.4
New Hampshire 1.8* 1.4*
New Jersey 1.7 1.4
New Mexico 2.1* 1.7
New York 2.6 1.8
North Carolina 1.8 1.1
North Dakota 2.0* 1.6*
Ohio 2.0 1.3*
Oklahoma 1.5* 1.2
Oregon 1.7* 1.4
Pennsylvania 2.1 2.6
Rhode Island 1.7* 1.7
South Carolina 2.2 1.7*
South Dakota 2.1* 1.7*
Tennessee 2.4 1.5*
Texas 2.0 1.5
Utah 1.7* 1.4
Vermont 1.7* 1.3*
Virginia 1.5 1.3
Washington 1.6* 1.5
West Virginia 1.9* 1.3*
Wisconsin 2.5* 1.7*
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 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.

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