State Unemployment by Race and Ethnicity

A shrinking federal workforce and a softening overall labor market

Key numbers • 2025 Q2

D.C. Highest Black-white unemployment ratio 3.4-to-1
D.C. Highest Hispanic-white unemployment ratio 2.5-to-1
U.S. National Black-white unemployment ratio 1.8-to-1
U.S. National Hispanic-white unemployment ratio 1.5-to-1

2025 Q2 • Updated August 2025

The second quarter of 2025 saw continued reductions in the federal workforce, while the overall economy and labor market softened

By Kyle K. Moore 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 second 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

Second-quarter 2025 state unemployment rates, trends, and ratios 

The second quarter of 2025 saw continued attacks from the Trump administration on the federal workforce, with expected effects on states and metro areas with high federal employment. The overall labor market saw slight softening from quarter to quarter, as racial disparities remained.

The overall labor market softened through the second quarter of 2025, though changes in state unemployment rates were relatively minor. The national unemployment rate ticked up slightly to 4.2% in the second quarter from 4.1% in the first quarter. Washington, D.C., saw the highest unemployment rate in the country at 5.9% and the largest unemployment rate increase at 0.5 percentage points. South Dakota had the lowest state unemployment rate at 1.8%. No state saw changes in their overall unemployment rate of more than one percentage point between the first and second quarters of 2025.

Overall unemployment rates 2025 Q2

Highest: D.C. (5.9%)

Lowest:  S.D. (1.8%)

National: 4.2%

The relatively large increases in Washington, D.C.’s unemployment rate reflect continued attacks from the Trump administration on federal employment, one of the few clear economic trends across the second quarter. Unemployment rates rose for all racial groups in the district, with the largest increases for Hispanic workers (0.8 percentage points). The passage of the Republican-led reconciliation bill in July will likely mean further downsizing of the federal workforce as agency funds are rescinded and reduced tax revenues constrain new federal employment. Given that most federal workers are employed outside Washington, D.C., and Black workers are overrepresented among federal employees relative to their share of the overall workforce, we could see increases in the Black unemployment rate across states related to these cuts over time.  

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2025 Q2

State All White Black Hispanic AAPI
United States 4.2% 3.4% 6.2% 5.1% 3.7%
Alabama 3.3% 2.7% 4.6% 4.0%* 2.9%*
Alaska 4.7% 2.5% 7.0%* 5.4%* 4.0%*
Arizona 4.1% 3.4% 5.3%* 5.1% 3.5%*
Arkansas 3.7% 3.0% 6.2% 4.4%* 3.3%*
California 5.3% 5.0% 7.7% 6.2% 3.4%
Colorado 4.8% 4.0% 7.3%* 6.5% 4.3%*
Connecticut 3.8% 3.1% 5.0%* 5.4% 3.4%*
Delaware 4.0% 2.9% 5.6% 5.1%* 3.5%*
Florida 3.7% 3.4% 5.4% 3.4% 3.4%*
Georgia 3.5% 2.6% 4.9% 3.9%* 3.2%*
Hawaii 2.8% 3.2% 4.2%* 3.5%* 2.5%
Idaho 3.6% 3.5% 5.4%* 4.1% 3.2%*
Illinois 4.7% 3.6% 7.7% 6.3% 4.3%
Indiana 3.7% 3.1% 5.2% 5.0%* 3.3%*
Iowa 3.6% 3.2% 5.4%* 4.4%* 3.2%*
Kansas 3.8% 3.1% 5.8%* 5.0%* 3.4%*
Kentucky 5.0% 4.0% 8.4% 6.2%* 4.5%*
Louisiana 4.5% 3.2% 6.3% 6.0% 4.0%*
Maine 3.4% 3.2% 5.1%* 4.2%* 3.0%*
Maryland 3.2% 2.0% 5.2% 3.8%* 2.9%*
Massachusetts 4.7% 4.1% 6.9% 7.5% 4.2%
Michigan 5.4% 4.3% 10.0% 7.4% 4.8%*
Minnesota 3.3% 2.5% 5.3%* 4.0%* 2.9%*
Mississippi 4.0% 3.1% 5.4% 4.9%* 3.6%*
Missouri 4.0% 3.4% 6.4% 4.9%* 3.5%*
Montana 2.8% 2.5% 4.1%* 3.4%* 2.5%*
Nebraska 3.0% 2.3% 4.5%* 4.4%* 2.7%*
Nevada 5.5% 4.8% 8.0% 6.0% 3.8%
New Hampshire 3.1% 2.8% 4.6%* 3.8%* 2.8%*
New Jersey 4.8% 4.2% 6.3% 5.2% 5.0%
New Mexico 4.2% 2.4% 5.7%* 4.6% 3.8%*
New York 4.1% 3.0% 6.9% 5.5% 3.2%
North Carolina 3.7% 3.2% 5.4% 3.5% 3.3%*
North Dakota 2.5% 2.0% 3.8%* 3.1%* 2.3%*
Ohio 4.9% 4.1% 8.8% 5.7%* 4.4%*
Oklahoma 3.1% 3.2% 4.2%* 3.4% 2.8%*
Oregon 4.8% 4.4% 7.1%* 6.2% 4.2%*
Pennsylvania 3.9% 3.4% 5.7% 7.3% 3.5%*
Rhode Island 4.9% 4.6% 7.2%* 6.0% 4.3%*
South Carolina 4.1% 2.9% 6.6% 5.1%* 3.7%*
South Dakota 1.8% 1.4% 2.7%* 2.2%* 1.6%*
Tennessee 3.5% 2.9% 6.6% 4.1%* 3.1%*
Texas 4.1% 3.0% 6.1% 4.3% 4.3%
Utah 3.2% 3.0% 4.7%* 3.9% 2.8%*
Vermont 2.6% 2.5% 3.9%* 3.2%* 2.3%*
Virginia 3.4% 2.7% 5.1% 4.0% 3.2%*
Washington 4.5% 4.1% 6.3%* 6.7% 3.5%
Washington D.C. 5.9% 3.0% 10.3% 7.6% 5.2%*
West Virginia 3.7% 3.6% 6.1%* 4.6%* 3.3%*
Wisconsin 3.3% 2.5% 6.2%* 4.4%* 2.9%*
Wyoming 3.3% 3.0% 4.9%* 4.1% 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.

Copy the code below to embed this chart on your website.

Second-quarter 2025 trends among white workers 

Thirty-nine states and Washington, D.C., had white unemployment rates below 4.0% in the second quarter of 2025. California and Nevada once again had the highest white unemployment rates, at 5.0% and 4.8% respectively. Eleven states had white unemployment rates at or above 4.0% in the second quarter (up from five states in the first quarter). South Dakota had the lowest white unemployment rate at 1.4%, followed by North Dakota and Maryland, both at 2.0%. The national white unemployment rate ticked up slightly to 3.4%, up from 3.3% in the first quarter.

White unemployment rates 2025 Q2

Highest: Calif. (5.0%), Nev. (4.8%)

Lowest: S.D. (1.4%)

National: 3.4%

Second-quarter 2025 trends among Black workers 

Washington, D.C., and Michigan had the highest Black unemployment rates in the second quarter of 2025, at 10.3% and 10.0% respectively. Alabama had the lowest Black unemployment rate among states with large enough sample sizes for precise estimation, at 4.6%. South Dakota had the lowest Black unemployment rate across all states at 2.7%, though the small Black worker population there makes estimation less precise. Black unemployment rates fell in Indiana and Kentucky by more than one percentage point (1.6 percentage points and 1.1 percentage points, respectively) and rose by more than one percentage point in Arkansas (1.2 percentage points). Nationally, the Black unemployment rate remained unchanged at 6.2%.

Black unemployment rates 2025 Q2

Highest: D.C. (10.3%), Mich. (10.0%)

Lowest: S.D.* (2.7%); Ala. (4.6%) 

National: 6.2%

The national Black-white unemployment ratio for 2025 Q2 fell to 1.8-to-1, from 1.9-to-1 in the previous quarter. Washington, D.C.’s Black-white unemployment ratio continues to fall, to 3.4-to-1 from 3.9-to-1 in the previous quarter—the lowest point for the District of Columbia in this series thus far, though still the highest Black-white ratio in the nation. This is, once again, due to an increasing white unemployment rate in Washington, D.C., likely the result of reductions in the federal workforce. California and New Jersey had the lowest Black-white unemployment ratios among states with large enough Black worker populations for precise estimates at 1.5-to-1. Hawaii and Oklahoma had the lowest Black-white unemployment ratios among all states, at 1.3-to-1, but have relatively small Black worker sample sizes. There were no states where Black and white workers are equally likely to be unemployed.

Black-white unemployment ratios 2025 Q2

Highest: D.C. (3.4-to-1)

Lowest: Hawaii*, Okla* (1.3-to-1); Calif., N.J. (1.5-to-1)

National: 1.8-to-1

Second-quarter 2025 trends among Hispanic workers

The second quarter of 2025 saw Hispanic unemployment rates above 7.0% in three states and Washington, D.C. Washington, D.C.; Massachusetts; and Michigan had the highest Hispanic unemployment rates, at 7.6%, 7.5%, and 7.4% respectively. Massachusetts was also the only state that saw an increase of at least 1 percentage point in its Hispanic unemployment rate from the previous quarter, with a 1.5 percentage point increase. Florida and Oklahoma had the lowest Hispanic unemployment rates among states with sufficient sample sizes for precise estimates, both at 3.4%. South Dakota continued to have the lowest Hispanic unemployment rate among all the states at 2.2%, though its Hispanic worker sample size is small. Nationally, the Hispanic unemployment rate remained at 5.1% from the previous quarter.  

Hispanic unemployment rates 2025 Q2

Highest: D.C. (7.6%), Mass. (7.5%), Mich. (7.4%)

Lowest: S.D.* (2.2%); Fla., Okla. (3.4%)

National: 5.1%

The nationwide Hispanic-white unemployment ratio stayed at 1.5-to-1, meaning Hispanic workers overall were 50% more likely to face unemployment than their white counterparts. Washington, D.C., continued to have the highest Hispanic-white unemployment ratio, though the ratio declined from 2.7-to-1 in the first quarter to 2.5.-to-1 in the second quarter. Florida had employment parity between the Hispanic and white workers surveyed, and North Carolina, Oklahoma, and Hawaii had nearly equal unemployment rates with ratios at 1.1-to-1.  

Hispanic-white unemployment ratios 2025 Q2

Highest: D.C. (2.5-to-1)

Lowest:  Fla. (1-to-1); N.C., Okla., Hawaii* (1.1-to-1)

National: 1.5-to-1

Second-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 estimates, at 5.0%. Washington, D.C., and Michigan had the highest AAPI unemployment rates among states with low sample sizes of AAPI workers, at 5.2% and 4.8% respectively. Hawaii continued to have the lowest AAPI unemployment rate among states with sufficient sample sizes, at 2.5%. South Dakota maintained the lowest overall AAPI unemployment rate, at 1.6%, though the state has a small sample size. Since the first quarter of 2025, state unemployment rates have remained steady, with all states seeing changes of less than 1 percentage point. The national unemployment rate for AAPI workers was 3.7%, consistent with the previous quarter. 

AAPI unemployment rates 2025 Q2

Highest: D.C* (5.2%), N.J. (5.0%); Mich.* (4.8%)

Lowest: S.D.* (1.6%), Hawaii (2.5%)

National: 3.7%

Table 1

Change in state unemployment rates by race and ethnicity from 2020 Q1 to 2025 Q2 (percentage points)

 

State All White Black Hispanic AAPI
United States 0.3 0.3 -0.1 0.6 0.7
Alabama -0.0 -0.2 -0.2 0.1* 0.3*
Alaska -0.7 -0.9 -1.8* -0.4* 0.1*
Arizona -0.7 -0.6 -2.2* -0.1 -0.6*
Arkansas -0.3 -0.5 -0.1 0.1* 0.2*
California 0.6 1.2 1.1 0.7 -0.7
Colorado 1.6 1.2 2.6* 2.5 1.7*
Connecticut -0.1 -0.3 -1.2* 0.8 0.3*
Delaware -0.1 -0.1 -2.1 0.6* 0.3*
District of Columbia 0.2 1.0 -1.3 3.2 0.8*
Florida 0.4 0.8 -0.9 0.2 1.0*
Georgia -0.1 0.1 -1.0 -0.1* 0.3*
Hawaii 0.7 0.9 0.7* 0.8* 0.6
Idaho 0.8 0.9 0.8* 0.5 1.0*
Illinois 0.5 0.2 -1.0 1.6 1.4
Indiana 0.2 -0.0 0.2 0.7* 0.6*
Iowa 0.9 1.0 0.3* 1.2* 1.1*
Kansas 0.7 0.3 0.4* 1.4* 1.0*
Kentucky 0.9 -0.0 2.0 1.3* 1.3*
Louisiana -0.9 -0.3 -2.7 -0.9 -0.2*
Maine 0.2 0.3 -0.2* 0.4* 0.5*
Maryland -0.2 -0.8 0.4 -0.1* 0.2*
Massachusetts 1.7 1.2 2.7 3.1 2.3
Michigan 1.6 1.0 3.2 2.8 1.9*
Minnesota -0.2 -0.8 -0.3* -0.2* 0.2*
Mississippi -1.7 -0.1 -4.6 -1.9* -0.9*
Missouri 0.5 0.3 0.7 0.8* 0.8*
Montana -0.7 -0.7 -1.6* -0.8* -0.3*
Nebraska -0.5 -0.4 -1.2* -0.2* -0.0*
Nevada 0.2 -0.2 -0.4 1.3 -1.4
New Hampshire 0.5 0.4 0.4* 0.8* 0.7*
New Jersey 0.8 0.9 -0.1 0.5 1.3
New Mexico -1.2 -1.7 -2.9* -1.5 -0.5*
New York -0.1 -0.6 0.3 0.2 1.3
North Carolina -0.2 0.1 -0.4 -2.1 0.3*
North Dakota 0.3 0.0 0.1* 0.4* 0.5*
Ohio 0.3 0.4 0.7 -0.4* 0.8*
Oklahoma -0.0 0.6 -1.2* -0.3 0.3*
Oregon 1.2 0.9 1.3* 2.1 1.1*
Pennsylvania -0.7 -0.4 -3.0 0.8 -0.1*
Rhode Island 1.3 1.6 1.4* 0.6 1.5*
South Carolina 1.2 0.4 2.7 1.6* 1.4*
South Dakota -0.7 0.0 -1.4* -0.7* -0.3*
Tennessee 0.0 0.1 -0.0 0.1* 0.4*
Texas 0.0 0.2 -0.0 -0.6 1.5
Utah 0.7 0.5 0.6* 1.1 0.9*
Vermont 0.4 0.2 0.2* 0.5* 0.6*
Virginia 0.4 0.2 1.0 0.2 0.7*
Washington 0.0 0.0 -0.5* 1.1 0.3
West Virginia -1.5 -1.4 -2.6* -1.7* -0.8*
Wisconsin 0.2 0.0 0.3* 0.4* 0.5*
Wyoming -1.3 -0.9 -2.6* -0.5 -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.

Copy the code below to embed this chart on your website.

Table 2

Black-white and Hispanic-white state unemployment rate ratios, 2025 Q2

 

State Black-white ratio Hispanic-white ratio
United States 1.8 1.5
Alabama 1.7 1.5*
Alaska 2.8* 2.2*
Arizona 1.6* 1.5
Arkansas 2.0 1.4*
California 1.5 1.2
Colorado 1.8* 1.6
Connecticut 1.6* 1.7
Delaware 1.9 1.8*
District of Columbia 3.4 2.5
Florida 1.6 1.0
Georgia 1.9 1.5*
Hawaii 1.3* 1.1*
Idaho 1.5* 1.2
Illinois 2.1 1.8
Indiana 1.7 1.6*
Iowa 1.7* 1.4*
Kansas 1.8* 1.6*
Kentucky 2.1 1.6*
Louisiana 2.0 1.9
Maine 1.6* 1.3*
Maryland 2.6 1.9*
Massachusetts 1.7 1.8
Michigan 2.3 1.7
Minnesota 2.1* 1.6*
Mississippi 1.7 1.6*
Missouri 1.9 1.4*
Montana 1.6* 1.4*
Nebraska 1.9* 1.9*
Nevada 1.7 1.2
New Hampshire 1.6* 1.4*
New Jersey 1.5 1.3
New Mexico 2.4* 2.0
New York 2.3 1.8
North Carolina 1.7 1.1
North Dakota 1.9* 1.6*
Ohio 2.2 1.4*
Oklahoma 1.3* 1.1
Oregon 1.6* 1.4
Pennsylvania 1.7 2.1
Rhode Island 1.6* 1.3
South Carolina 2.3 1.8*
South Dakota 1.9* 1.6*
Tennessee 2.3 1.4*
Texas 2.0 1.5
Utah 1.6* 1.3
Vermont 1.6* 1.3*
Virginia 1.9 1.5
Washington 1.6* 1.7
West Virginia 1.7* 1.3*
Wisconsin 2.5* 1.8*
Wyoming 1.6* 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.

Copy the code below to embed this chart on your website.

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: