This report provides a state-by-state breakdown of unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps for the third quarter of 2018. While there have been state-by-state improvements in prospects for black and Hispanic workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

• While the African American unemployment rate is at or below its pre-recession level in 18 states (of the 21 states and the District of Columbia for which these data are available), in 12 states and the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2.0-to-1 or higher.
• The District of Columbia has a black–white unemployment rate ratio of 6.2-to-1, while Illinois and Louisiana have the highest ratios among states (3.0-to-1 and 2.8-to-1, respectively).
• The highest African American unemployment rate is in the District of Columbia (12.4 percent), followed by Illinois (9.3 percent), Louisiana (8.5 percent), Alabama (7.1 percent), and New York (7.0 percent). The highest Hispanic state unemployment rate is in Nebraska (5.9 percent), followed by Connecticut (5.7 percent), Arizona (5.6 percent), Pennsylvania (5.6 percent), and Washington (5.6 percent). Meanwhile, the highest white state unemployment rate is 5.0 percent, in West Virginia.
• The Hispanic unemployment rate is at or below its pre-recession level in 15 states (of the 17 states for which these data are available). There are two states in which the Hispanic unemployment rate is equal to or lower than the white rate (Colorado, 0.8-to-1, and Georgia, 0.9-to-1).
• The largest gaps between Hispanic and white unemployment rates are in Nebraska (3.0-to-1), Idaho (1.9-to-1), and Virginia (1.9-to-1).

Background

In September 2018, the national unemployment rate was 3.7 percent, down from 4.0 percent at the end of the second quarter of 2018.2 State unemployment rates in September ranged from a low of 2.2 percent in Hawaii to 6.5 percent in Alaska.3 According to a previous EPI analysis of unemployment by state, from June to September 2018, 31 states saw their unemployment rates decline, 16 states and the District of Columbia saw unemployment rates rise, and three states saw no change.4

State unemployment rates, by race and ethnicity

EPI analyzes state unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps, on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race and ethnicity at the state level. We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate. For this reason, the number of states included in our map and data tables varies based on the analysis performed (unemployment rate, change in unemployment rate since the fourth quarter of 2007, and ratio of African American or Hispanic unemployment rate to white unemployment rate).

Trends among white workers

In the third quarter of 2018, the white unemployment rate was lowest in Hawaii (1.2 percent) and highest in West Virginia (5.0 percent), as shown in the interactive map and underlying data table, which present state unemployment rates by race and ethnicity. This is the second consecutive quarter in which Hawaii had the lowest white unemployment rate.

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007—the last quarter before the Great Recession—to the third quarter of 2018. The white unemployment rate remained most elevated above its pre-recession level in Wyoming, at 0.8 percentage points higher than in the fourth quarter of 2007. The white unemployment rate is at or below its pre-recession level in 41 states. The largest declines in white unemployment since the end of 2007 have occurred in Hawaii (down 2.8 percentage points), Michigan (down 2.4 percentage points), Maine (down 2.0 percentage points), and Oregon (down 1.9 percentage points). The white unemployment rate is above but within 0.5 percentage points of its pre-recession level in seven states and the District of Columbia.

Table 1

Trends among African American workers

African American unemployment rate estimates are available for 22 states and the District of Columbia. Among states, the unemployment rate for African Americans was lowest in Massachusetts and Virginia (3.8 percent), and highest in Illinois (9.3 percent); in the District of Columbia, it was 12.4 percent. The District of Columbia also had the highest black unemployment rate during the previous eight quarters.

In the third quarter of 2018, of the 22 states with African American unemployment rate estimates, all had black unemployment rates below 10 percent; in 10 of these states, the rate was at or below the third-quarter national average for African American workers (6.3 percent).

As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the third quarter of 2018, Massachusetts had the smallest black–white rate gaps of the 22 states and the District of Columbia. Black unemployment in Massachusetts was only 1.1 times the white unemployment rate. Meanwhile, as in the previous eight quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 6.2 times the white rate. The next highest unemployment ratios were in Illinois (3.0-to-1), Louisiana (2.8-to-1), South Carolina (2.7-to-1), and Alabama (2.4-to-1).

Table 2

The black unemployment rate in the third quarter of 2018 was at or below its pre-recession level in 18 states: Arkansas, California, Florida, Georgia, Illinois, Indiana, Louisiana, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. (Data on the change in black unemployment over this period are available for 21 states and the District of Columbia.)

Trends among Hispanic workers

Hispanic unemployment rate estimates are available for 24 states and the District of Columbia, and data on the change in Hispanic unemployment rates since the fourth quarter of 2007 are available for 17 states. In the third quarter of 2018, among states, the Hispanic unemployment rate was highest in Nebraska (5.9 percent), Connecticut (5.7 percent), Arizona (5.6 percent), Pennsylvania (5.6 percent), and Washington (5.6 percent). The rate was lowest in Colorado (2.3 percent) and Georgia (2.8 percent).

The Hispanic unemployment rate is at or below its pre-recession level in 15 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Texas, and Washington. The Hispanic unemployment rate was most elevated above its pre-recession level in Virginia (1.2 percentage points).

In two states the Hispanic unemployment rate was lower than the white unemployment rate: Colorado (0.8-to-1) and Georgia (0.9-to-1). The ratio of Hispanic unemployment to white unemployment was highest in Nebraska (3.0-to-1), Idaho (1.9-to-1), and Virginia (1.9-to-1).

Trends among Asian workers

Asian unemployment rate estimates are available for 14 states, and data on the change in Asian unemployment rates since the fourth quarter of 2007 are available for eight states. The Asian unemployment rate was lowest in Virginia (0.7 percent) and highest in Illinois (4.6 percent). The Asian unemployment rate was at or below its pre-recession level in California, Hawaii, and New York. In five states the Asian unemployment rate was above its pre-recession level: New Jersey (1.4 percentage points higher), Illinois (1.2 percentage points higher), Texas (0.4 percentage points higher), Nevada (0.2 percentage points higher), and Washington (0.2 percentage points higher).

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. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race and ethnicity by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rates. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnotes

1. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

2. “Labor Force Statistics from the Current Population Survey: Unemployment Rate,” Series Id. LNS14000000 [online data table], U.S. Bureau of Labor Statistics, October 22, 2018.

3. “State Employment and Unemployment—September 2018,” U.S. Bureau of Labor Statistics, October 19, 2018.

4. “Long-Term Trends Show States Continuing to Add Jobs” (press release), Economic Policy Institute, October 19, 2018.

This report provides a state-by-state breakdown of unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps for the second quarter of 2018. While there have been state-by-state improvements in prospects for black and Hispanic workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

• While the African American unemployment rate is at or below its pre-recession level in 17 states (of the 23 states and the District of Columbia for which these data are available), in 10 states and the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher.
• The District of Columbia has a black–white unemployment rate ratio of 8.2-to-1, while South Carolina and Florida have the highest ratios among states (3.5-to-1 and 2.7-to-1, respectively).
• The highest African American unemployment rate is in the District of Columbia (12.4 percent), followed by Illinois (9.0 percent), New York (8.1 percent), and South Carolina (8.1 percent). The highest Hispanic state unemployment rate is in Connecticut (8.2 percent). Meanwhile, the highest white state unemployment rate is only 5.1 percent, in West Virginia.
• While the Hispanic unemployment rate is at or below its pre-recession level in 12 states (of the 16 states for which these data are available), there is no state in which the Hispanic unemployment rate is equal to or lower than the white rate.
• In four states and the District of Columbia, Hispanic unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher (Nebraska, 3.3-to-1; Connecticut, 2.8-to-1; District of Columbia, 2.8-to-1; Idaho, 2.0-to-1; Massachusetts, 2.0-to-1).

Background

In June 2018, the national unemployment rate was 4.0 percent, down from 4.1 percent at the end of the first quarter of 2018.2 State unemployment rates in June ranged from a low of 2.1 percent in Hawaii to 7.1 percent in Alaska.3 According to a previous EPI analysis of unemployment by state, from March to June 2018, 29 states saw their unemployment rates decline, 10 states saw unemployment rates rise, and 11 states and the District of Columbia saw no change.4

State unemployment rates, by race and ethnicity

EPI analyzes state unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps, on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race and ethnicity at the state level. We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate. For this reason, the number of states included in our map and data tables varies based on the analysis performed (unemployment rate, change in unemployment rate since the fourth quarter of 2007, and ratio of African American or Hispanic unemployment rate to white unemployment rate).

Trends among white workers

In the second quarter of 2018, the white unemployment rate was lowest in the District of Columbia (1.5 percent) and highest in West Virginia (5.1 percent), as shown in the interactive map, which present state unemployment rates by race and ethnicity. Among states, Hawaii had the lowest unemployment rate for white workers (1.7 percent).

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007—the last quarter before the Great Recession—to the second quarter of 2018. The white unemployment rate remained most elevated above its pre-recession level in Louisiana, at 1.1 percentage points higher than in the fourth quarter of 2007. The white unemployment rate is at or below its pre-recession level in 40 states and the District of Columbia. The largest declines in white unemployment since the end of 2007 have occurred in Hawaii (down 2.3 percentage points), Maine (down 2.2 percentage points), Michigan (down 1.9 percentage points), Wisconsin (down 1.9 percentage points), Rhode Island (down 1.7 percentage points), and Massachusetts (down 1.6 percentage points). The white unemployment rate is above but within 0.5 percentage points of its pre-recession level in seven states.

Table 1

Trends among African American workers

African American unemployment rate estimates are available for 23 states and the District of Columbia. For the second consecutive quarter, among states, the unemployment rate for African Americans was lowest in Indiana (3.7 percent) and highest in Illinois (9.0 percent); in the District of Columbia, it was 12.4 percent. The District of Columbia also had the highest black unemployment rate during the previous seven quarters.

In the second quarter of 2018, of the 23 states with African American unemployment rate estimates, all had black unemployment rates below 10 percent; in 12 of these states, the rate was at or below the second quarter national average for African American workers (6.4 percent).

As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the second quarter of 2018, Indiana had the smallest black–white rate gaps of the 23 states and the District of Columbia. Black unemployment in Indiana was only 1.2 times the white unemployment rate. Meanwhile, as in the previous seven quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 8.2 times the white rate. The next highest unemployment ratios were in South Carolina (3.5-to-1), Florida (2.7-to-1), Georgia (2.6-to-1), and Illinois (2.6-to-1).

Table 2

The black unemployment rate in the second quarter of 2018 was at or below its pre-recession level in 17 states: Arkansas, California, Georgia, Illinois, Indiana, Louisiana, Michigan, Mississippi, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. (Data on the change in black unemployment over this period are available for 22 states and the District of Columbia).

Trends among Hispanic workers

Hispanic unemployment rate estimates are available for 24 states and the District of Columbia, and data on the change in Hispanic unemployment rates since the fourth quarter of 2007 are available for 16 states. In the second quarter of 2018, among states, the Hispanic unemployment rate was highest in Connecticut (8.2 percent), Washington (6.8 percent), and Nebraska (6.3 percent). The rate was lowest in Colorado (2.9 percent) and Utah (3.1 percent).

The Hispanic unemployment rate is at or below its pre-recession level in 12 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New York, North Carolina, Utah, and Virginia. The Hispanic unemployment rate was most elevated above its pre-recession level in Washington (1.0 percentage points).

In no state was the Hispanic unemployment rate lower than the white unemployment rate. The ratio of Hispanic unemployment to white unemployment was highest in Nebraska (3.3-to-1), Connecticut (2.8-to-1), and the District of Columbia (2.8-to-1).

Trends among Asian workers

Asian unemployment rate estimates are available for 12 states, and data on the change in Asian unemployment rates since the fourth quarter of 2007 are available for seven states. The Asian unemployment rate was lowest in Georgia (1.5 percent). For the second consecutive quarter, the highest Asian unemployment rate was in Massachusetts (4.8 percent). The Asian unemployment rate was at or below its pre-recession level in California, Hawaii, New York, Texas, and Washington. In two states the Asian unemployment rate was above its pre-recession level: Illinois and New Jersey (0.4 percentage points higher in both).

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. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race and ethnicity by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rates. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnotes

1. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

2. “Labor Force Statistics from the Current Population Survey: Unemployment Rate,” Series Id. LNS14000000 [online data table], U.S. Bureau of Labor Statistics, July 27, 2018.

3. “State Employment and Unemployment—June 2018,” U.S. Bureau of Labor Statistics, July 20, 2018.

4. “The March toward Full Employment Continues in a Majority of States” (press release), Economic Policy Institute, July 20, 2018.

This report provides a state-by-state breakdown of unemployment rates by race and ethnicity and racial/ethnic unemployment rate gaps for the first quarter of 2018. It shows that while there have been state-by-state improvements in prospects for black and Hispanic workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

• While the African American unemployment rate is at or below its pre-recession level in 17 states (of the 22 states and the District of Columbia for which these data are available), in 14 states and the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher.
• The District of Columbia has the highest black–white unemployment rate ratio overall, at 8.5-to-1, while South Carolina and Maryland have the highest ratios among states (3.2-to-1 and 2.8-to-1, respectively).
• The highest African American unemployment rate is in the District of Columbia (12.9 percent), followed by Illinois (9.1 percent) and New Jersey (9.0 percent). The highest Hispanic state unemployment rate is in Connecticut (10.0 percent). In contrast, the highest white state unemployment rate is 5.2 percent, in West Virginia.
• While the Hispanic unemployment rate is at or below its pre-recession level in 13 states (of the 16 states for which these data are available), there is no state where the Hispanic unemployment rate is lower than the white rate.
• In five states and the District of Columbia, Hispanic unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher (Connecticut, 3.4-to-1; Massachusetts, 2.1-to-1; Washington, 2.1-to-1; Colorado, 2.0-to-1; District of Columbia, 2.0-to-1, and Idaho, 2.0-to-1).

Background

In March 2018, the national unemployment rate was 4.1 percent, unchanged from at the end of the fourth quarter of 2017.2 State unemployment rates in March ranged from a low of 2.1 percent in Hawaii to 7.3 percent in Alaska.3 According to a previous EPI analysis of unemployment by state, from December to March 2018, 25 states and the District of Columbia saw their unemployment rates decline, 7 states saw unemployment rates rise, and 18 states saw no change.4

State unemployment rates, by race and ethnicity

EPI analyzes state unemployment rates by race and ethnicity, and by racial/ethnic unemployment rate gaps, on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race and ethnicity at the state level. We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate. For this reason, the number of states included in our map and data tables varies based on the analysis performed (unemployment rate, change in unemployment rate since the fourth quarter of 2007, and ratio of African American or Hispanic unemployment rate to white unemployment rate).

Trends among white workers

In the first quarter of 2018, the white unemployment rate was lowest in the District of Columbia (1.5 percent) and highest in West Virginia (5.2 percent), as shown in the interactive map and underlying data, which present state unemployment rates by race and ethnicity. Among states, North Dakota had the lowest unemployment rate for white workers (1.9 percent).

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the first quarter of 2018. The white unemployment rate remained most elevated above its pre-recession level in Louisiana and New Mexico: in both states, the rate was 1.0 percentage point higher than in the fourth quarter of 2007. The white unemployment rate is at or below its pre-recession level in 39 states and the District of Columbia. The largest declines in white unemployment since the end of 2007 have occurred in Maine (down 2.1 percentage points), Michigan (down 2.1 percentage points), Rhode Island (down 2.1 percentage points), Hawaii (down 2.0 percentage points), and Massachusetts (down 1.9 percentage points). The white unemployment rate is above but within 0.5 percentage points of its pre-recession level in six states.

Table 1

Trends among African American workers

African American unemployment rate estimates are available for 23 states and the District of Columbia. During the first quarter of 2018, among states, the African American unemployment rate was lowest in Indiana (4.8 percent) and highest in Illinois (9.1 percent); in the District of Columbia, it was 12.9 percent. The District of Columbia also had the highest black unemployment rate during the previous six quarters.

In the first quarter of 2018, of the 23 states with African American unemployment rate estimates, all had black unemployment rates below 10 percent; in 14 of these states, the rate was at or below the first quarter national average for African American workers (7.2 percent).

As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the first quarter of 2018, Delaware, Indiana, and Pennsylvania had the smallest black–white rate gaps of the 23 states and the District of Columbia. In those states, black unemployment was 1.6 times the white rate. In the first quarter of 2018, as in the previous six quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 8.5 times the white rate. The next highest unemployment ratios were in South Carolina (3.2-to-1), Maryland (2.8-to-1), and Georgia (2.6-to-1).

Table 2

The black unemployment rate in the first quarter of 2018 was at or below its pre-recession level in 17 states: Alabama, Arkansas, California, Georgia, Illinois, Indiana, Louisiana, Michigan, Mississippi, Missouri, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Texas. (Data on the change in black unemployment over this period are available for 22 states and the District of Columbia). However, all states except for Louisiana, Mississippi, and Texas have black labor force participation rates that were lower in the first quarter of 2018 than at the end of 2007, indicating that the return to pre-recession levels of unemployment in these states was not a full recovery for African American workers because not all discouraged job seekers have returned to the market.5

Trends among Hispanic workers

Hispanic unemployment rate estimates are available for 23 states and the District of Columbia, and data on changes in Hispanic unemployment rates since the fourth quarter of 2007 are available for 16 states. In the first quarter of 2018, among states, the Hispanic unemployment rate was highest in Connecticut (10.0 percent) and lowest in Arkansas and Virginia (both at 3.3 percent). The Hispanic unemployment rate was 3.1 percent in the District of Columbia. Connecticut and Washington were the only states with Hispanic unemployment rates above 8.0 percent in the first quarter.

The Hispanic unemployment rate is at or below its pre-recession level in 13 states: Arizona, California, Colorado, Florida, Georgia, Illinois, Nevada, New Jersey, New York, North Carolina, Texas, Utah, and Virginia. The Hispanic unemployment rate was most elevated above its pre-recession level in Washington (by 2.3 percentage points).

In no state was the Hispanic unemployment rate lower than the white unemployment rate. In Arkansas, the Hispanic unemployment rate and white unemployment rate were exactly the same (3.3 percent). The ratio of Hispanic unemployment to white unemployment was highest in Connecticut (3.4-to-1), Massachusetts (2.1-to-1), and Washington (2.1-to-1).

Trends among Asian workers

Asian unemployment rate estimates are available for 10 states, and data on the change in Asian unemployment rates since the fourth quarter of 2007 are available for seven states. For the third consecutive quarter, the Asian unemployment rate was lowest in Hawaii (1.6 percent). The highest Asian unemployment rate was in Massachusetts (6.2 percent). The Asian unemployment rate was at or below its pre-recession level in California, Hawaii, Illinois, New York, Texas, and Washington. In only one state—New Jersey—was the Asian unemployment rate was more than 2 percentage points above its pre-recession level (at 2.6 percentage points higher).

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. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race and ethnicity by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rates. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnotes

1. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

2. “Labor Force Statistics from the Current Population Survey: Unemployment Rate,” Series Id. LNS14000000 [online data table], U.S. Bureau of Labor Statistics, April 27, 2018.

3. “State Employment and Unemployment—March 2018,” U.S. Bureau of Labor Statistics, April 20, 2018.

4. “March Weather Likely at Play in State Jobs Report” (press release). Economic Policy Institute, April 20, 2018.

5. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

This report provides a state-by-state breakdown of unemployment rates by race and ethnicity and racial/ethnic unemployment rate gaps for the fourth quarter of 2017. It shows that while there have been state-by-state improvements in prospects for black and Hispanic workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

• While the African American unemployment rate is at or below its pre-recession level in 17 states (of the 22 states—and the District of Columbia—for which these data are available), in 18 states and the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher.
• The District of Columbia has a black–white unemployment rate ratio of 7.8-to-1, while South Carolina and Michigan have the highest ratios among states (3.2-to-1 and 3.0-to-1, respectively).
• The highest African American unemployment rate is in the District of Columbia (13.7 percent), followed by Michigan (10.8 percent). The highest Hispanic state unemployment rate is in Connecticut (8.3 percent). In contrast, the highest white state unemployment rate is 5.3 percent, in West Virginia.
• While the Hispanic unemployment rate is at or below its pre-recession level in 12 states (of the 16 states for which these data are available), there is no state where the Hispanic unemployment rate is lower than the white rate.
• In three states and the District of Columbia, Hispanic unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher (Connecticut, 2.3-to-1; District of Columbia, 2.2-to-1; Massachusetts, 2.2-to-1, and Arizona, 2.1-to-1).

Background

In December 2017, the national unemployment rate was 4.1 percent, a slight decrease from 4.2 percent at the end of the third quarter of 2017.2 State unemployment rates in December ranged from a low of 2.0 percent in Hawaii to 7.3 percent in Alaska.3 According to a previous EPI analysis of unemployment by state, from September to December 2017, 30 states and the District of Columbia saw their unemployment rates decline, 17 states saw unemployment rates rise, and three states saw no change.4

State unemployment rates, by race and ethnicity

EPI analyzes state unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps, on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race and ethnicity at the state level. We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate. For this reason, the number of states included in our map and data tables varies based on the analysis performed (unemployment rate, change in unemployment rate since the fourth quarter of 2007, and ratio of African American or Hispanic unemployment rate to white unemployment rate).

Trends among white workers

In the fourth quarter of 2017, the white unemployment rate was lowest in Hawaii (1.6 percent) and highest in West Virginia (5.3 percent), as shown in the interactive map and underlying data table, which present state unemployment rates by race and ethnicity. Before the fourth quarter of 2017, South Dakota had the lowest unemployment rate for white workers for nine consecutive quarters.

Figure A

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the fourth quarter of 2017. The white unemployment rate remained most elevated above its pre-recession level in Wyoming: 1.2 percentage points higher than in the fourth quarter of 2007. The white unemployment rate is at or below its pre-recession level in 38 states. The largest declines in white unemployment since the end of 2007 have occurred in Michigan (down 2.5 percentage points), Hawaii (down 2.4 percentage points), Rhode Island (down 1.9 percentage points), Maine (down 1.7 percentage points), Massachusetts (down 1.6 percentage points), and Vermont (down 1.6 percentage points). The white unemployment rate is above but within 0.5 percentage points of its pre-recession level in nine states.

Table 1

Trends among African American workers

African American unemployment rate estimates are available for 23 states and the District of Columbia. During the fourth quarter of 2017, among states, the African American unemployment rate was lowest in Tennessee (4.0 percent) and highest in Michigan (10.8 percent); in the District of Columbia, it was 13.7 percent. The District of Columbia also had the highest black unemployment rate during the previous four quarters.

In the fourth quarter of 2017, of the 23 states with African American unemployment rate estimates, all but one state had black unemployment rates below 10 percent; in 12 of these states, the rate was at or below the fourth quarter national average for African American workers (7.3 percent).

As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the fourth quarter of 2017, Arkansas and Tennessee had the smallest black–white rate gaps of the 23 states and the District of Columbia. In those states, black unemployment was 1.3 times the white rate. In the fourth quarter of 2017, as in the previous five quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 7.8 times the white rate. The next highest unemployment ratios were in South Carolina (3.2-to-1), Michigan (3.0-to-1), and Louisiana (2.7-to-1).

Table 2

The black unemployment rate in the fourth quarter of 2017 was at or below its pre-recession level in 17 states: Alabama, Arkansas, California, Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, Mississippi, Missouri, New York, North Carolina, Ohio, South Carolina, Tennessee, and Texas. (Data on the change in black unemployment over this period are available for 22 states and the District of Columbia.) However, all states except for Maryland and Texas have black labor force participation rates that were lower in the fourth quarter of 2017 than at the end of 2007, indicating that the return to pre-recession levels of unemployment in these states was not a full recovery for African American workers because not all discouraged job-seekers have returned to the market.5

Further, of the states in which black unemployment rates have recovered, eight have black unemployment rates higher than the fourth quarter national average for African Americans (7.3 percent): California, Illinois, Indiana, Louisiana, Michigan, North Carolina, Ohio, and South Carolina. The black unemployment rate remains most elevated above its pre-recession level in the District of Columbia (3.9 percentage points higher); among states, Delaware holds this distinction (2.9 percentage points higher).

Trends among Hispanic workers

Hispanic unemployment rate estimates are available for 23 states and the District of Columbia, and data on the change in Hispanic unemployment rates since the fourth quarter of 2007 are available for 16 states. In the fourth quarter of 2017, the Hispanic unemployment rate was highest in Connecticut (8.3 percent) and lowest in Georgia (3.7 percent). Connecticut, Massachusetts, and New Mexico were the only states with Hispanic unemployment rates above 6.0 percent in the fourth quarter.

The Hispanic unemployment rate is at or below its pre-recession level in 12 states: Arizona, California, Colorado, Florida, Georgia, Illinois, Nevada, New Jersey, New York, North Carolina, Texas, and Washington. The Hispanic unemployment rate is above but within 1.0 percentage point of its pre-recession level in Connecticut, Utah, and Virginia. For the third quarter in a row, the Hispanic unemployment rate was most elevated above its pre-recession level in New Mexico (1.7 percentage points).

In every state for which data are available, the Hispanic unemployment rate was higher than the white unemployment rate. The ratio of Hispanic unemployment to white unemployment was lowest in Georgia (1.2-to-1), Nevada (1.2-to-1), and Oklahoma (1.2-to-1). In three states and the District of Columbia the Hispanic-white unemployment rate ratio was at least 2-to1: Connecticut (2.3-to-1), District of Columbia (2.2-to-1), Massachusetts (2.2-to-1), and Arizona (2.1-to-1).

Trends among Asian workers

Asian unemployment rate estimates are available for 10 states, and data on the change in Asian unemployment rates since the fourth quarter of 2007 are available for seven states. The Asian unemployment rate was lowest in Hawaii (1.8 percent). The highest Asian unemployment rate was in New Jersey (7.1 percent). The Asian unemployment rate was at or below its pre-recession level in California, Hawaii, and Texas. The Asian unemployment rate was more than 2 percentage points above its pre-recession level in only one state: New Jersey (4.8 percentage points higher).

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. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race and ethnicity by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rates. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnotes

1. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

2. “Labor Force Statistics from the Current Population Survey: Unemployment Rate,” Series Id. LNS14000000 [online data table], U.S. Bureau of Labor Statistics, December, 2017.

3. “State Employment and Unemployment—December 2017,” U.S. Bureau of Labor Statistics, January 23, 2018.

4. “Most States End 2017 on the Right Path, but Pockets of Weakness Remain,” press release, Economic Policy Institute, January 23, 2018.

5. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

This report provides a state-by-state breakdown of unemployment rates by race and ethnicity and racial/ethnic unemployment rate gaps for the third quarter of 2017. It shows that while there have been state-by-state improvements in prospects for black and Hispanic workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

• While the African American unemployment rate is at or below its pre-recession level in 16 states (of the 22 states and the District of Columbia for which these data are available), in 16 states and the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher.
• The District of Columbia has a black–white unemployment rate ratio of 8.5-to-1, while Indiana and Delaware have the highest ratios among states (3.3-to-1 and 3.1-to-1, respectively).
• The highest African American unemployment rate is in the District of Columbia (13.7 percent), followed by Illinois (10.1 percent). The highest Hispanic state unemployment rate is in Massachusetts (8.8 percent). In contrast, the highest white state unemployment rate is 5.0 percent, in Kentucky.
• While the Hispanic unemployment rate is at or below its pre-recession level in 12 states (of the 16 states for which these data are available), Washington is the only state where the Hispanic unemployment rate is lower than the white rate.
• In two states and the District of Columbia, Hispanic unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher (District of Columbia, 3.5-to-1; Massachusetts, 2.7-to-1, and Wyoming, 2.4-to-1).

Background

In September 2017, the national unemployment rate was 4.2 percent, a slight decrease from 4.4 percent at the end of the second quarter of 2017.2 State unemployment rates in September ranged from a low of 2.4 percent in North Dakota to 7.2 percent in Alaska.3 According to a previous EPI analysis of unemployment by state, from June to September 2017, 25 states saw their unemployment rates decline, 17 states and the District of Columbia saw unemployment rates rise, and eight states saw no change.4

State unemployment rates, by race and ethnicity

EPI analyzes state unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps, on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race and ethnicity at the state level. We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate. For this reason, the number of states included in our map and data tables varies based on the analysis performed (unemployment rate, change in unemployment rate since the fourth quarter of 2007, and ratio of African American or Hispanic unemployment rate to white unemployment rate).

Trends among white workers

In the third quarter of 2017, the white unemployment rate was lowest in the District of Columbia (1.6 percent) and highest in Kentucky (5.0 percent), as shown in the interactive map and underlying data table, which present state unemployment rates by race and ethnicity. Among states, South Dakota had the lowest unemployment rate for white workers (1.8 percent) for the ninth consecutive quarter.

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the third quarter of 2017. The white unemployment rate remained most elevated above its pre-recession level in Louisiana: 1.0 percentage point higher than in the fourth quarter of 2007. The white unemployment rate is at or below its pre-recession level in 36 states and the District of Columbia. The largest declines in white unemployment since the end of 2007 have occurred in Michigan (down 2.9 percentage points), Hawaii (down 2.1 percentage points), Oregon (down 1.9 percentage points), Arkansas (down 1.5 percentage points), and Tennessee (down 1.5 percentage points). The white unemployment rate is above but within 0.5 percentage points of its pre-recession level in nine states.

Table 1

Trends among African American workers

African American unemployment rate estimates are available for 23 states and the District of Columbia. During the third quarter of 2017, among states, the African American unemployment rate was lowest in Tennessee (4.0 percent) and highest in Illinois (10.1 percent); in the District of Columbia, it was 13.7 percent. The District of Columbia also had the highest black unemployment rate during the previous three quarters.

In the third quarter of 2017, of the 23 states with African American unemployment rate estimates, all but one state had black unemployment rates below 10 percent; in 13 of these states, the rate was at or below the third quarter national average for African American workers (7.5 percent).

As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the third quarter of 2017, Missouri and Tennessee had the smallest black–white rate gaps of the 23 states and the District of Columbia. In those states, black unemployment was 1.3 times the white rate. In the third quarter of 2017, as in the previous four quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 8.5 times the white rate. The next highest unemployment ratios were in Indiana (3.3-to-1), Delaware (3.1-to-1), and South Carolina (3.0-to-1).

Table 2

The black unemployment rate in the third quarter of 2017 was at or below its pre-recession level in 16 states: Arkansas, California, Georgia, Illinois, Indiana, Maryland, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, South Carolina, Tennessee, and Texas. (Data on the change in black unemployment over this period are available for 22 states and the District of Columbia). This is an increase from the 14 states that had reached this benchmark by the second quarter of 2017. However, with the exceptions of Texas and Maryland, all of these states had black unemployment rates of at least 8.0 percent before the recession. Of the states in which black unemployment rates have recovered, eight have black unemployment rates higher than the third quarter national average for African Americans (7.5 percent): California, Georgia, Illinois, Indiana, Michigan, Mississippi, Ohio, and South Carolina. For the second consecutive quarter, the black unemployment rate remains most elevated above its pre-recession level in Delaware (5.0 percentage points higher).

Trends among Hispanic workers

Hispanic unemployment rate estimates are available for 23 states and the District of Columbia, and data on the change in Hispanic unemployment rates since the fourth quarter of 2007 are available for 16 states. In the third quarter of 2017, the Hispanic unemployment rate was highest in Massachusetts (8.8 percent) and lowest in Washington (2.5 percent). Massachusetts and Wyoming were the only states with Hispanic unemployment rates above 8.0 percent in the third quarter.

The Hispanic unemployment rate is at or below its pre-recession level in 12 states: California, Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New Jersey, New York, North Carolina, Texas, and Washington. The Hispanic unemployment rate is above but within 1.0 percentage points of its pre-recession level in Arizona and Utah. For the second quarter in a row, the Hispanic unemployment rate was most elevated above its pre-recession level in New Mexico (2.1 percentage points).

Washington was the only state where the Hispanic unemployment rate was lower than the white unemployment rate (with a Hispanic–white unemployment rate ratio of 0.6-to-1). In Georgia, the Hispanic unemployment rate and white unemployment rate were exactly the same. The ratio of Hispanic unemployment to white unemployment was highest in the District of Columbia (3.5-to-1), followed by Massachusetts (2.7-to-1) and Wyoming (2.4-to-1).

Trends among Asian workers

Asian unemployment rate estimates are available for 11 states, and data on the change in Asian unemployment rates since the fourth quarter of 2007 are available for eight states. The Asian unemployment rate was lowest in Hawaii (2.3 percent); Massachusetts had held this distinction for the first two quarters of 2017. The highest Asian unemployment rate was in Illinois (5.6 percent). The Asian unemployment rate was at or below its pre-recession level in California, Hawaii, Nevada, and Texas. In two states, the Asian unemployment rate was more than 2 percentage points above its pre-recession level: Illinois and New Jersey (2.2 and 2.9 percentage points higher, respectively).

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. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race and ethnicity by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rates. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnotes

1. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

2. “Labor Force Statistics from the Current Population Survey: Unemployment Rate,” Series Id. LNS14000000 [online data table], U.S. Bureau of Labor Statistics, August 28, 2017.

3. “State Employment and Unemployment—September 2017,” U.S. Bureau of Labor Statistics, October 20, 2017.

4. “Hurricane Irma Creates Outlier in State Unemployment and Jobs Data,” press release, Economic Policy Institute, October 20, 2017.

This report provides a state-by-state breakdown of unemployment rates by race and ethnicity and racial unemployment rate gaps for the second quarter of 2017. It shows that while there have been state-by-state improvements in prospects for black and Latino workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

• While the African American unemployment rate is at or below its prerecession level in 14 states (of the 22 states and the District of Columbia for which these data are available), in 15 states and the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher.
• The District of Columbia has a black-white unemployment rate ratio of 6.7-to-1, while Indiana and Louisiana have the highest ratios (2.6-to-1) among the states.
• The highest African American unemployment rate is in the District of Columbia (12.8 percent) followed by Louisiana (9.7 percent). The highest Latino state unemployment rate is in Connecticut (8.9 percent). In contrast, the highest white state unemployment rate is 5.0 percent, in New Mexico.
• While the Hispanic unemployment rate is at or below its prerecession level in nine states (of the 16 states for which these data are available), Colorado was the only state where the Hispanic unemployment rate was lower than the white unemployment rate.
• In three states, Hispanic unemployment rates exceed white unemployment rates by a ratio of 2-to-1 or higher (Massachusetts, 2.3-to-1; Connecticut, 2.1-to-1, and Pennsylvania, 2.0-to-1).

Background

In June 2017, the national unemployment rate was 4.4 percent, a slight decrease from 4.5 percent at the end of the first quarter of this year.2 State unemployment rates in June ranged from a low of 2.3 percent in Colorado and North Dakota to 6.8 percent in Alaska.3 According to a previous EPI analysis of unemployment by state, from March to June 2017, 33 states saw their unemployment rates decline, 15 states and the District of Columbia saw unemployment rates rise, and two states saw no change.

State unemployment rates, by race and ethnicity

EPI analyzes state unemployment rates by race and ethnicity, and racial unemployment rate gaps, on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race at the state level. We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate. For this reason, the number of states included in our map and data tables varies based on the analysis performed (unemployment rate, change in unemployment rate since the fourth quarter of 2007, and ratio of African American or Hispanic unemployment rate to white unemployment rate).

Trends among whites

In the second quarter of 2017, the white unemployment rate was lowest in South Dakota (1.5 percent) and highest in New Mexico (5.0 percent), as shown in the interactive map and underlying data table, which present state unemployment rates by race and ethnicity. South Dakota has had the lowest white unemployment rate for eight consecutive quarters, and New Mexico has had the highest white unemployment rate for two consecutive quarters.

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the second quarter of 2017. The white unemployment rate remained most elevated above its prerecession level in New Mexico: 1.7 percentage points higher than it was in the fourth quarter of 2007. The white unemployment rate is at or below its prerecession level in 36 states, up from 30 states in the first quarter of 2017. The largest declines in white unemployment since the end of 2007 have occurred in Michigan (down 2.6 percentage points), Oregon (down 2.4 percentage points), Maine (down 1.9 percentage points), and Wisconsin (down 1.9 percentage points). The white unemployment rate is above but within 0.5 percentage points of its prerecession level in 11 states and the District of Columbia.

Table 1

Trends among African Americans

African American unemployment rate estimates are available for 22 states and the District of Columbia. During the second quarter of 2017, among states, the African American unemployment rate was lowest in Arkansas (5.6 percent) and highest in Louisiana (9.7 percent); in the District of Columbia, it was 12.8 percent. The District of Columbia also had the highest black unemployment rate during the previous two quarters, though among states Tennessee had the highest black unemployment rate in the first quarter of 2017.

In the second quarter of 2017, of the 22 states with African American estimates every state had African American unemployment rates below 10 percent; in 12 of these states, the rate was lower than the second quarter national average for African Americans (7.4 percent).

As shown in Table 2, which displays the black-white and Hispanic-white unemployment rate ratios in the second quarter of 2017, California, Missouri, and North Carolina had the smallest black-white rate gaps of the 22 states and the District of Columbia. In those states, black unemployment was 1.6 times the white rate. Delaware had the smallest black-white unemployment rate ratio at the beginning of the year (1.4-to-1). In the second quarter of 2017, as in the previous three quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 6.7 times the white rate. The next highest unemployment ratios were in Indiana (2.6-to-1) and Louisiana (2.6-to-1).

Table 2

The black unemployment rate in the second quarter of 2017 was at or below its prerecession level in 14 states: Arkansas, California, Illinois, Indiana, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, South Carolina, Tennessee, and Texas. This is an increase from the 11 states that had reached this benchmark by the first quarter of 2017. However, with the exception of Texas, all of these states had black unemployment rates of at least 8.0 percent before the recession. Of the states in which black unemployment rates have recovered, four have black unemployment rates higher than the second quarter national average for African Americans (7.4 percent): Illinois, Ohio, Tennessee, and Texas. The black unemployment rate remains most elevated above its prerecession level in Delaware (3.6 percentage points higher).

Trends among Hispanics

Hispanic unemployment rate estimates are available for 23 states and the District of Columbia, and data on the change in Hispanic unemployment rates since the fourth quarter of 2007 are available for 16 states. In the second quarter of 2017, the Hispanic unemployment rate was highest in Connecticut (8.9 percent) and lowest in Colorado (1.9 percent). Connecticut replaced Pennsylvania as the state with the highest Hispanic unemployment rate, and Connecticut and Pennsylvania were the only states with Hispanic unemployment rates above 8.0 percent in the second quarter. Among states, Colorado also had the lowest Hispanic unemployment rate in the previous quarter.

The Hispanic unemployment rate is at or below is prerecession level in nine states: California, Colorado, Florida, Georgia, Illinois, Nevada, New York, North Carolina, and Washington. The Hispanic unemployment rate is above but within 0.5 percentage points of its prerecession level in Arizona, New Jersey, and Utah. The Hispanic unemployment rate was most elevated above its prerecession level in New Mexico (1.8 percentage points).

Colorado was the only state where the Hispanic unemployment rate was lower than the white unemployment rate (with a Hispanic-white unemployment rate ratio of 0.8-to-1). This is the second consecutive quarter Colorado had a Hispanic-white unemployment ratio of less than one. The ratio of Hispanic unemployment to white unemployment was highest in Massachusetts (2.3-to-1), followed by Connecticut (2.1-to-1) and Pennsylvania (2.0-to-1).

Trends among Asians

Asian unemployment rate estimates are available for 11 states and data on the change in Asian unemployment rates since the fourth quarter of 2007 are available for  eight states. The Asian unemployment rate was lowest in Massachusetts (2.1 percent) and highest in Washington (4.5 percent). Massachusetts has had the lowest Asian unemployment rate for two consecutive quarters. The Asian unemployment rate was below 5 percent in every state for which estimates are available. The Asian unemployment rate was at or below its prerecession level in California, Hawaii, Nevada, New York, and Texas. In Illinois, it was above but within 0.5 percentage points of its prerecession level. The Asian unemployment rate was most elevated above its prerecession level in New Jersey (1.2 percentage points higher).

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. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race and ethnicity by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rates. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnotes

1. EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data.

2. “Labor Force Statistics from the Current Population Survey: Unemployment Rate,” Series Id. LNS14000000 [online data table], U.S. Bureau of Labor Statistics, August 28, 2017.

3. “State Employment and Unemployment—June 2017” [news release], U.S. Bureau of Labor Statistics, July 21, 2017.

In March 2017, the national unemployment rate was 4.5 percent, a slight decrease from 4.7 percent at the end of the fourth quarter in December 2016. State unemployment rates in March ranged from a low of 2.6 percent in Colorado to a high of 6.7 percent in New Mexico.1 According to an earlier EPI analysis, from December 2016 to March 2017, 36 states and the District of Columbia saw their unemployment rates decline, 10 states saw unemployment rates rise, and 4 states saw no change. In the first quarter of 2017, African Americans had the highest unemployment rate nationally, at 8.0 percent, followed by Latinos (5.7 percent), whites (3.8 percent), and Asians (3.3 percent).

State unemployment rates, by race and ethnicity

This report provides unemployment rates, by race and ethnicity, and racial unemployment rate gaps, by state, for the first quarter of 2017. We provide this analysis on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race at the state level. We only report estimates for states where the sample size of these subgroups is large enough to create an accurate estimate.

Trends among whites

In the first quarter of 2017, the white unemployment rate was lowest in South Dakota (1.7 percent) and highest in New Mexico (5.2 percent), as shown in the interactive map and underlying data table, which present state unemployment rates by race and ethnicity. South Dakota has had the lowest white unemployment rate for seven quarters in a row, while New Mexico replaces West Virginia as the state with the highest white unemployment rate.

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the first quarter of 2017. New Mexico is the state where the white unemployment rate is most elevated above its pre-recession level, 1.9 percentage points higher than in the fourth quarter of 2007. The white unemployment rate is at or below its pre-recession level in 30 states, with the largest decreases since the fourth quarter of 2007 in Maine (-2.2 percentage points), Michigan (-1.8 percent), Massachusetts (-1.7 percentage points), Hawaii (-1.5 percentage points), Oregon (-1.5 percentage points), and Rhode Island (-1.5 percentage points). The white unemployment rate is above but within 0.5 percentage point of its pre-recession level in 13 states and the District of Columbia.

Table 1

Trends among African Americans

During the first quarter of 2017, among states, the African American unemployment rate was lowest in Arkansas (5.6 percent) and highest in Tennessee (10.9 percent); in the District of Columbia, it was 12.2 percent. The District of Columbia also had the highest black unemployment rate during the previous quarter, though among states Illinois had the highest black unemployment rate (11.3 percent) in the fourth quarter of 2016.

In the first quarter of 2017, of the 22 states with African American estimates (23 counting the District of Columbia), 20 had African American unemployment rates at or below 10 percent; in 12 of these states, the rate was lower than the first quarter national average for African Americans (8.0 percent).

Table 2 displays the black-white and Hispanic-white unemployment rate ratios in the first quarter of 2017. Delaware’s black-white unemployment rate ratio was the smallest in the country (of the states with data). In Delaware, the black unemployment rate was 1.5 times the white rate, up from 1.4 times the white rate during the previous quarter. Delaware also had the smallest black-white unemployment rate ratio in the last quarter of 2016. As in the previous two quarters, the largest gap was in the District of Columbia, where the black unemployment rate was 5.6 times the white rate. The next highest black-white unemployment ratios were in Massachusetts and Virginia (both at 2.6 times the white rate).

Table 2

With regard to recovery, the African American unemployment rate is at or below its pre-recession level in 11 states: Arkansas, California, Illinois, Indiana, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, and South Carolina. However, a return to pre-recession levels in these states is barely a recovery: in all of these states, black unemployment rates were above 8.0 percent before the recession. Of the states where the black unemployment rate has recovered, Illinois, Michigan, and Ohio have black unemployment rates higher than the first quarter national average for African Americans (8.0 percent). The black unemployment rate is higher than but within 0.5 percentage point of its pre-recession level in Georgia and Texas. The black unemployment rate remains most elevated above its pre-recession level in Alabama (3.7 percentage points higher).

Trends among Hispanics

The Hispanic unemployment rate was highest in Pennsylvania (9.8 percent) and lowest in the District of Columbia (2.2 percent); among states it was lowest in Colorado (estimates are available for 23 states and the District of Columbia). Pennsylvania has had the highest Hispanic unemployment rate for three consecutive quarters and was the only state in the first quarter of 2017 with a Hispanic unemployment rate above 9 percent. Colorado replaces Utah as the state with the lowest Hispanic unemployment rate.

The Hispanic unemployment rate is at or below its pre-recession level in 12 states: California, Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New York, North Carolina, Rhode Island, Utah, and Virginia. The Hispanic unemployment rate is above but within 0.5 percentage point of its pre-recession level in Arizona, Illinois, and New Jersey. The Hispanic unemployment rate was most elevated above its pre-recession level in Washington (1.8 percentage points), New Mexico (1.5 percentage points), and Texas (1.1 percentage points).

The Hispanic-white unemployment rate ratio is lowest in Colorado (0.9) and highest in Pennsylvania (2.4). This is the second consecutive quarter Pennsylvania has had the largest gap between Hispanic and white unemployment rates, despite a decrease in the Hispanic unemployment rate while the white rate was essentially unchanged from the previous quarter.

Trends among Asians

Asian unemployment estimates are available for 12 states. The Asian unemployment rate was lowest in Massachusetts (2.0 percent) and highest in Nevada (5.7 percent). Nevada has had the highest Asian unemployment rate for three consecutive quarters and was the only state with an Asian unemployment rate above 5 percent. The Asian unemployment rate was below its pre-recession level in California, Illinois, and New York. In Hawaii, New Jersey, Texas, and Washington, it was above but within 0.5 percentage point of its pre-recession level. The Asian unemployment rate was most elevated above its pre-recession level in Nevada (2.7 percentage points higher).

Methodology

The unemployment rate estimates in this issue brief are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics. The overall state unemployment rate is taken directly from the LAUS. CPS 6-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 6 months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of particular subgroups are not large enough to create accurate estimates of their unemployment rate. We report data only for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.

Endnote

1. Bureau of Labor Statistics, “State Employment and Unemployment Summary” (Economic News Release), April 21, 2017.

State unemployment rates, by race and ethnicity

The following is an overview of racial and ethnic unemployment rates and unemployment rate gaps by state for the fourth quarter of 2016. We provide this analysis on a quarterly basis in order to generate a sample size large enough to create reliable estimates of unemployment rates by race at the state level. We report estimates only for states where the sample size of these subgroups is large enough to create an accurate estimate.

Trends among whites

In the fourth quarter of 2016, the white unemployment rate was lowest in South Dakota (1.5 percent) and highest in West Virginia (5.3 percent), as shown in the interactive map of state unemployment rates by race and ethnicity. South Dakota has had the lowest white unemployment rate for six quarters in a row, while West Virginia has had the highest white unemployment rate for seven consecutive quarters.

Interactive Map

As shown in Table 1, which displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the fourth quarter of 2016, Louisiana’s white unemployment rate remained most elevated above its pre-recession level: 1.9 percentage points higher than it was in the fourth quarter of 2007. The white unemployment rate was at or below its pre-recession level in 29 states, up from 25 states in the third quarter of 2016. In another 13 states, the white unemployment rate was within 0.5 percentage point of its pre-recession level.

Table 1

Trends among African Americans

During the fourth quarter of 2016, African American unemployment was lowest in Delaware (4.9 percent) and highest in the District of Columbia (13.0 percent). During each quarter of 2016, the black unemployment rate in the District of Columbia was above 12 percent. For the other three quarters of 2016, the highest black unemployment rate was in Illinois (in the fourth quarter, it dropped to 11.3 percent, down 2.9 percentage points from the third quarter). Eighteen states had African American unemployment rates below 10 percent in the fourth quarter of 2016; in 13 of these states, the rate was lower than the fourth-quarter national average for African Americans (8.2 percent).

As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the fourth quarter of 2016, Delaware’s black–white unemployment rate gap was the smallest in the country. In that state, black unemployment was 1.4 times the white rate, down from 2.3 times the white rate during the previous quarter. Delaware also had the smallest black–white unemployment rate ratio at the beginning of 2016 (1.3). As in the previous quarter, the largest gap was in the District of Columbia, where the black unemployment rate was 6.9 times the white rate. The next highest unemployment ratios were in Missouri (3.0) and Massachusetts (2.6).

Table 2

The black unemployment rate in the fourth quarter of 2016 was at or below its pre-recession level in 16 states: Arkansas, California, Delaware, Georgia, Illinois, Indiana, Michigan, Missouri, Mississippi, New Jersey, New York, North Carolina, Ohio, South Carolina, and Tennessee. While this is three more states than in the previous quarter, it is important to put this “recovery” in context: All of these states except Delaware had black unemployment rates of at least 8.0 percent at the end of 2007. Of the states where black unemployment was at or below pre-recession levels, Arkansas, Delaware, Mississippi, New Jersey, New York, North Carolina, and South Carolina have black unemployment rates lower than the fourth-quarter 2016 national average for blacks (8.2 percent). The black unemployment rate remains most elevated above its pre-recession level in Pennsylvania and the District of Columbia (3.3 and 3.2 percentage points higher, respectively).

Trends among Hispanics

The Hispanic unemployment rate was highest in Pennsylvania (11.3 percent) and lowest in Utah (3.1 percent). Pennsylvania has had the highest Hispanic unemployment rate for two consecutive quarters, and was the only state in the fourth quarter of 2016 with a Hispanic unemployment rate above 10 percent. Utah replaces Virginia as the state with the lowest Hispanic unemployment rate.

The Hispanic unemployment rate was below its pre-recession level in 12 states: California, Colorado, Connecticut, Florida, Georgia, Nevada, New Jersey, New York, North Carolina, Rhode Island, Utah, and Virginia. The Hispanic unemployment rate was within 0.5 percentage point of its pre-recession level in Illinois. In the fourth quarter of 2007, Colorado, Florida, New Jersey, Texas, Utah, and Virginia had Hispanic unemployment rates lower than the national average among Hispanics—a distinction they also held in the fourth quarter of 2016. In the first and fourth quarters of 2016, the Hispanic unemployment rate was most elevated above its pre-recession level in New Mexico (2.3 and 2.7 percentage points higher, respectively).

Oklahoma was the only state where the Hispanic unemployment rate was lower than the white unemployment rate (with a Hispanic–white unemployment rate ratio of 0.9). The largest gap was in Pennsylvania, where despite a 0.5 percentage point decline in the Hispanic unemployment rate since the previous quarter, it was still 2.5 times the white rate.

Trends among Asians

During the fourth quarter of 2016, the Asian unemployment rate was lowest in Illinois (2.2 percent) and highest in Nevada (6.7 percent). Nevada has had the highest Asian unemployment rate for two consecutive quarters and was one of only two states (the other being New Jersey) with an Asian unemployment rate above 6 percent. As in the previous quarter, the Asian unemployment rate was below pre-recession levels in California, Illinois, and Washington; in Hawaii, it was within 0.1 percentage point of its pre-recession level. The Asian unemployment rate was most elevated above its pre-recession level in New Jersey (4.0 percentage points higher).

Methodology

The unemployment rate estimates in this issue brief are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics. The overall state unemployment rate is taken directly from the LAUS. CPS 6-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 6 months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares to the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample size of these subgroups is not large enough to create an accurate estimate of their unemployment rate. We report data only for groups which had, on average, a sample size of at least 700 in the labor force for each 6-month period.

State unemployment rates, by race and ethnicity

The following is an overview of racial unemployment rates and racial unemployment rate gaps by state for the third quarter of 2016. We provide this analysis on a quarterly basis in order to generate a sample size large enough to create reliable estimates of unemployment rates by race at the state level. We only report estimates for states where the sample size of these subgroups is large enough to create an accurate estimate.

Trends among whites

In the third quarter of 2016, the white unemployment rate was lowest in South Dakota (1.2 percent) and highest in West Virginia (6.2 percent), as shown in the interactive map, which presents state unemployment rates by race and ethnicity. South Dakota also had the lowest white unemployment rate in the preceding four quarters, while West Virginia has had the highest white unemployment rate for six consecutive quarters.

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the third quarter of 2016. Consistent with the first half of the year, Wyoming is the state where the white unemployment rate is most elevated above its prerecession level—2.7 percentage points higher than in the fourth quarter of 2007. On the other hand, the white unemployment rate is at or below its prerecession level in 24 states: Arkansas, California, Colorado, District of Columbia, Hawaii, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, Nevada, North Carolina, Ohio, Oregon, Rhode Island, South Dakota, Tennessee, Virginia, Vermont, and Wisconsin. In the second quarter of 2016, half of the states had reached this milestone, although some of the states on the list have changed. In another 15 states, the white unemployment rate was within 0.5 percentage points of its precession level.

Table 1

Trends among African Americans

During the third quarter of 2016, the African American unemployment rate was lowest in Vermont (6.2 percent) and highest in Illinois (14.2 percent). Illinois has had the highest unemployment rate for four consecutive quarters. Since the fourth quarter of 2015, the black unemployment rate in Illinois has risen 1.1 percentage points as unemployment has increased 0.7 percentage points statewide. Consistent with last quarter, seventeen states had African American unemployment rates below 10 percent in the third quarter of 2016—in 12 of these states, the rate was lower than the third quarter national average for African Americans (8.4 percent).

As shown in Table 2, which displays the black-white and Hispanic-white unemployment rate ratios in the third quarter of 2016, New York’s black-white unemployment rate gap was the smallest in the country. In that state, the black unemployment rate was 1.5 times the white rate during the previous quarter. This change was due to a decrease in the state’s black unemployment rate at the same time that whites increased their likelihood of unemployment. The largest gaps were in the District of Columbia, where the black unemployment rate was 8.0 times the white rate, and Illinois, where the black unemployment rate was 2.9 times the white rate.

Table 2

With regard to recovery, the African American unemployment rate in the third quarter is at or below its prerecession level in 12 states: Arkansas, California, Indiana, Michigan, Missouri, Mississippi, New Jersey, New York, Ohio, South Carolina, Tennessee, and Texas. But this numerical “recovery” must be put in proper context because with the exceptions of Texas, New York, New Jersey, and Tennessee, each of these states also had black unemployment rates that were among the highest in the nation before the recession. Of the states where the black unemployment rate has recovered, Indiana, Michigan, Missouri, Ohio, and South Carolina, have black unemployment rates lower than the third quarter national average for blacks (8.4 percent). Similar to last quarter, the black unemployment rate remains most elevated above its prerecession level in Pennsylvania and Alabama (4.4 and 3.7 percentage points higher, respectively). Before the recession, the African American unemployment rate was 7.2 percent in Pennsylvania and 6.3 percent in Alabama.

Trends among Hispanics

In the third quarter of 2016, the Hispanic unemployment rate was highest in Pennsylvania (11.8 percent) and lowest in Virginia (2.8 percent). (These states maintained their ranking from the second quarter.) The Hispanic unemployment rate is at or below its prerecession level in 10 states: California, Colorado, Florida, Georgia, North Carolina, Nevada, New York, Texas, Utah, and Virginia. The Hispanic unemployment rate is within 0.5 percentage points of its prerecession level in Connecticut, New Jersey, and Washington. It is a sign of a more meaningful recovery in Colorado, Florida, Texas, Utah, and Virginia that the Hispanic unemployment rates lower than the national average. The Hispanic unemployment rate was most elevated above its prerecession level in Arizona and Illinois (2.3 and 1.8 percentage points higher, respectively).

The Hispanic unemployment rate is lower than the white rate in Virginia (with a Hispanic-white unemployment rate ratio of 0.9), while the Hispanic-white unemployment rate gap is largest in District of Columbia, where the Hispanic unemployment rate is 3.0 times the white rate. This ratio is up from the previous quarter (2.0) as a result of a 1.2 percentage point increase in Hispanic unemployment while white unemployment dipped down 0.1 percentage point.

Trends among Asians

The Asian unemployment rate was lowest in Hawaii (2.8 percent) and highest in Nevada (8.0 percent). Hawaii has had the lowest Asian unemployment rate for four consecutive quarters. The Asian unemployment rate remains most elevated above prerecession levels in Nevada (5.1 percentage points). The Asian unemployment rate was below the prerecession levels in California, Illinois, and Washington, and within 0.5 percentage points of the precession levels in Hawaii and New York.

Methodology

The unemployment rate estimates in this issue brief are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares to the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample size of these subgroups is not large enough to create an accurate estimate of their unemployment rate. We only report data for groups which had, on average, a sample size of at least 700 in the labor force for each six-month period.

Those monthly numbers, from the Bureau of Labor Statistic’s “Regional and State Employment and Unemployment Summary,” showed that the national unemployment rate was 4.9 percent in June, little changed since the end of the second quarter in March.

According to an earlier EPI analysis, from March 2016 to June 2016, 24 states and the District of Columbia saw their unemployment rates decline, while 21 states saw unemployment rates rise. In most cases, higher unemployment rates were accompanied by increased labor force participation, suggesting that at least some of the increase in unemployment could be the result of discouraged job-seekers returning to the market. Although job growth was fairly widespread across the country during the second quarter of 2016, conditions continued to vary greatly across states and across racial and ethnic groups. In June, state unemployment rates ranged from a high of 6.7 percent in Alaska to a low of 2.7 percent in South Dakota. Nationally, African Americans had the highest unemployment rate in June, at 8.6 percent, followed by Latinos (5.8 percent), whites (4.4 percent), and Asians (3.5 percent).

State unemployment rates, by race and ethnicity

Following is an overview of state unemployment rates and rate gaps by race and ethnicity for the second quarter of 2016. We provide this analysis on a quarterly basis to generate a sample size large enough to create reliable estimates of unemployment rates by race and ethnicity at the state level.  We only report estimates for states for which the sample size of these subgroups is large enough to create an accurate estimate.

Trends among whites

In the second quarter of 2016, the white unemployment rate was lowest in South Dakota (1.1 percent) and highest in West Virginia (6.3 percent), as shown in the interactive map of state unemployment rates by race and ethnicity.  South Dakota also had the lowest white unemployment rate in the preceding three quarters, while West Virginia has had the highest white unemployment rate for five consecutive quarters.

Interactive Map

Table 1 displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the second quarter of 2016. Wyoming is the state where the white unemployment rate in the second quarter was most elevated above its prerecession level—2.8 percentage points higher than in the fourth quarter of 2007. On the other hand, the white unemployment rate was at or below its prerecession level in half the country, specifically in Arkansas, California, Colorado, District of Columbia, Florida, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, North Carolina, Ohio, Oregon, Rhode Island, South Dakota, Tennessee, Vermont, Virginia, and Wisconsin. This is the same number of states that had reached this milestone in the last quarter, although some of the states on the list have changed.  The white unemployment rate was within 0.5 percentage points of its prerecession level in another 15 states.

Table 1

Trends among African Americans

During the second quarter of 2016, the African American unemployment rate was lowest in Texas (6.1 percent) and highest in Illinois (15.0 percent). Illinois has had the highest black unemployment rate for three consecutive quarters.  Since the fourth quarter of 2015, the black unemployment rate in Illinois has risen 1.9 percentage points as unemployment has increased 0.7 percentage points statewide. Seventeen states had African American unemployment rates below 10 percent in the second quarter of 2016—in 13 of these states, the rate was equal to or lower than the second quarter national average for African Americans (8.5 percent).

Table 2 displays the ratios between the black and white unemployment rates, and the Hispanic and white unemployment rates in the second quarter of 2016. As the table shows, Texas had the smallest black–white unemployment rate gap in the country. In that state, the black unemployment rate was 1.6 times the white rate, down from 1.8 times the white rate during the previous quarter. This change was due to a small decline in the state’s black unemployment rate at the same time that the state’s white unemployment rate increased slightly. The largest gaps were in the District of Columbia,  where the black unemployment rate was 7.3 times the white rate, and Maryland, where the black unemployment rate was 3.3 times the white rate.

Table 2

With regard to recovery, the African American unemployment rate in the second quarter was at or below its prerecession level in 13 states—four more states than during the first quarter. The states are Arkansas, California, Georgia, Indiana, Michigan, Mississippi, Missouri, New Jersey, New York, Ohio, South Carolina, Tennessee, and Texas. But this numerical “recovery” must be put in proper context because with the exceptions of Texas, New York, New Jersey, Georgia, and Tennessee, each of these states also had black unemployment rates that were among the highest in the nation before the recession. Still, of the states with black unemployment rates back to precession levels, only California, Indiana, Michigan, and Ohio had black unemployment rates higher than the second quarter average for blacks, nationally (8.5 percent). The black unemployment rate was within 0.7 percentage points of its prerecession level in North Carolina. The black unemployment rate remains most elevated above its prerecession level in Pennsylvania and Alabama (5.1 and 4.9 percentage points higher, respectively). Before the recession, the African American unemployment rate was 7.2 percent in Pennsylvania and 6.3 percent in Alabama.

Trends among Hispanics

In the second quarter of 2016, the Hispanic unemployment rate was highest in Pennsylvania (12.0 percent) and lowest in Virginia (2.7 percent).  This reflects a rise in the Hispanic unemployment rate in Pennsylvania from the first quarter, and the replacement by Virginia of North Carolina, which had the lowest state Hispanic unemployment rate in the first quarter.

The Hispanic unemployment rate is at or below its prerecession level in eight states: California, Florida, Georgia, New York, North Carolina, Texas, Utah, and Virginia. The Hispanic unemployment rate is within 0.5 percentage points of its prerecession level in Colorado and Nevada. In the fourth quarter of 2007, Florida, Texas, Utah and Virginia had Hispanic unemployment rates lower than the national average among Hispanics—a distinction they continue to hold, indicating a more meaningful recovery.  The Hispanic unemployment rate was most elevated above its prerecession level in Washington and Illinois (1.8 percentage points higher each).

The Hispanic unemployment rate is lower than the white rate in Georgia, Utah, and Virginia (with a Hispanic–white unemployment rate ratio of 0.9), while the Hispanic–white unemployment rate gap is largest in Pennsylvania, where the Hispanic unemployment rate is 2.8 times the white rate.  This ratio is up from the previous quarter (1.8) as a result of a much larger increase in the Hispanic unemployment rate than the white unemployment rate.

Trends among Asians

The Asian unemployment rate was lowest in Hawaii and New Jersey (2.8 percent) and highest in Nevada (6.5 percent) in the second quarter of 2016. Hawaii and New Jersey were also the states with the lowest Asian unemployment rates during the first quarter of 2016. The Asian unemployment rate remains most elevated above prerecession levels in Nevada (3.5 percentage points). The Asian unemployment rate was below the prerecession levels in California and Washington, and within 0.5 percentage points of the prerecession levels in Hawaii, Illinois, and New Jersey.

Methodology

The unemployment rate estimates in this economic indicator are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics. The overall state unemployment rate is taken directly from the LAUS. CPS six-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 six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares with the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample sizes of these subgroups are not large enough to create an accurate estimate of their unemployment rates. We only report data for groups that had, on average, a sample size of at least 700 in the labor force for each six-month period.