Short Answer
The U.S. labor market held steady in June 2026, but state unemployment rates continued to reveal sharp regional differences. According to the U.S. Bureau of Labor Statistics (BLS), the national unemployment rate was 4.2 percent, while state rates ranged from 2.6 percent in Hawaii to 6.0 percent in the District of Columbia. Although most states saw little change from May, 13 states recorded higher jobless rates than a year earlier, with Connecticut, Florida, and Illinois posting the largest increases.
Key Numbers
- National unemployment rate: 4.2% in June 2026
- Lowest state rate: Hawaii at 2.6%
- Highest state rate: District of Columbia at 6.0%
- Largest 12-month increase: Connecticut, up 1.3 percentage points
- Largest 12-month decrease: Indiana, down 0.4 percentage points
- States with year-over-year rate increases: 13; decreases: 7; little change: 30 states and D.C.
- Nonfarm payroll employment change over the month: increased in 3 states, decreased in 1, essentially unchanged in 46 states and D.C.
Explanation
The unemployment rate is the percentage of the civilian labor force that is jobless, actively seeking work, and available to take a job. The civilian labor force includes all people age 16 and older who are either employed or unemployed. State unemployment rates are produced monthly by the BLS through the Local Area Unemployment Statistics (LAUS) program, which combines data from the Current Population Survey, the Current Employment Statistics survey, and state unemployment insurance claims.
State rates are seasonally adjusted to remove regular seasonal patterns, such as holiday hiring or summer tourism, making month-to-month and year-over-year comparisons more meaningful. In June 2026, the national rate was 4.2 percent, little changed from May and from June 2025. However, state-level results varied widely, reflecting differences in industry mix, labor force growth, and regional economic conditions.
While the national rate provides a broad snapshot, state unemployment rates are important because they show where labor market weakness or strength is concentrated. A low rate can signal a tight labor market with strong demand for workers, while a high rate may indicate economic distress or structural challenges.
State Comparison
The table below shows seasonally adjusted unemployment rates for selected states and the District of Columbia in June 2026, along with rates from June 2025 and the 12-month change.
| State | June 2026 rate | June 2025 rate | 12-month change |
|---|---|---|---|
| Alabama | 3.2% | 2.9% | 0.3 |
| Alaska | 4.4% | 4.6% | -0.2 |
| Arizona | 4.9% | 4.3% | 0.6 |
| Arkansas | 4.1% | 4.0% | 0.1 |
| California | 5.2% | 5.5% | -0.3 |
| Colorado | 3.9% | 4.0% | -0.1 |
| Connecticut | 5.2% | 3.9% | 1.3 |
| Delaware | 4.9% | 4.7% | 0.2 |
| District of Columbia | 6.0% | 6.2% | -0.2 |
| Florida | 4.7% | 3.8% | 0.9 |
| Georgia | 3.4% | 3.3% | 0.1 |
| Hawaii | 2.6% | 2.3% | 0.3 |
| Idaho | 3.7% | 3.6% | 0.1 |
| Illinois | 5.1% | 4.3% | 0.8 |
| Indiana | 3.3% | 3.7% | -0.4 |
| Iowa | 3.2% | 3.5% | -0.3 |
| Kansas | 3.8% | 3.7% | 0.1 |
| Kentucky | 4.7% | 4.6% | 0.1 |
| Louisiana | 4.4% | 4.3% | 0.1 |
| Maine | 3.1% | 3.3% | -0.2 |
| Maryland | 4.3% | 4.1% | 0.2 |
| Massachusetts | 4.4% | 4.4% | 0.0 |
| Michigan | 5.0% | 5.0% | 0.0 |
| Minnesota | 4.4% | 3.8% | 0.6 |
| Mississippi | 3.8% | 3.8% | 0.0 |
Ranking Table
Ranked from lowest to highest unemployment rate among the states shown, Hawaii had the lowest rate in June 2026, while the District of Columbia had the highest. Several states tied, including Alabama and Iowa at 3.2 percent, and Kansas and Mississippi at 3.8 percent.
| Rank | State | Unemployment rate |
|---|---|---|
| 1 | Hawaii | 2.6% |
| 2 | Maine | 3.1% |
| 3 | Alabama | 3.2% |
| 4 | Iowa | 3.2% |
| 5 | Indiana | 3.3% |
| 6 | Georgia | 3.4% |
| 7 | Idaho | 3.7% |
| 8 | Kansas | 3.8% |
| 9 | Mississippi | 3.8% |
| 10 | Colorado | 3.9% |
| 11 | Arkansas | 4.1% |
| 12 | Maryland | 4.3% |
| 13 | Alaska | 4.4% |
| 14 | Louisiana | 4.4% |
| 15 | Massachusetts | 4.4% |
| 16 | Minnesota | 4.4% |
| 17 | Florida | 4.7% |
| 18 | Kentucky | 4.7% |
| 19 | Arizona | 4.9% |
| 20 | Delaware | 4.9% |
| 21 | Michigan | 5.0% |
| 22 | Illinois | 5.1% |
| 23 | California | 5.2% |
| 24 | Connecticut | 5.2% |
| 25 | District of Columbia | 6.0% |
Year-over-Year Change
Between June 2025 and June 2026, 13 states had jobless rate increases, 7 states had decreases, and 30 states and the District of Columbia had little change. The table below highlights the largest increases and decreases.
| State | 12-month change (percentage points) | June 2026 rate |
|---|---|---|
| Connecticut | +1.3 | 5.2% |
| Florida | +0.9 | 4.7% |
| Illinois | +0.8 | 5.1% |
| Arizona | +0.6 | 4.9% |
| Minnesota | +0.6 | 4.4% |
| Indiana | -0.4 | 3.3% |
| Iowa | -0.3 | 3.2% |
| California | -0.3 | 5.2% |
| Alaska | -0.2 | 4.4% |
| Maine | -0.2 | 3.1% |
| District of Columbia | -0.2 | 6.0% |
National Comparison
The national unemployment rate was 4.2 percent in June 2026, unchanged from May and little changed from June 2025. Among the 25 states and the District of Columbia shown in the table above, 11 states had rates below the national average, 14 states and D.C. had rates above it, and no state exactly matched the national rate. States with the lowest rates, such as Hawaii, Maine, and Alabama, were well below the national figure, while California, Connecticut, and the District of Columbia were at least one full percentage point above it.
Methodology
The BLS produces state unemployment rates through the Local Area Unemployment Statistics (LAUS) program. LAUS estimates are model-based and incorporate data from the Current Population Survey (CPS), the Current Employment Statistics (CES) survey, and state unemployment insurance (UI) claims systems. The CPS provides national and state labor force data, while UI claims and CES data help refine state-level employment and unemployment estimates.
All state unemployment rates in this article are seasonally adjusted, meaning the BLS removes regular seasonal fluctuations to better reveal underlying trends. The June 2026 data are preliminary and may be revised in subsequent months as more complete information becomes available.
Definitions
- Unemployed: People who are not working, are available for work, and have actively looked for a job in the past four weeks.
- Civilian labor force: The sum of employed and unemployed people age 16 and older, excluding active-duty military and institutionalized populations.
- Unemployment rate: The number of unemployed people divided by the civilian labor force, expressed as a percentage.
- Seasonally adjusted: A statistical technique that removes predictable seasonal patterns, such as summer hiring or winter layoffs, from data.
- Nonfarm payroll employment: A count of paid workers in the U.S. economy, excluding farm workers, private household employees, and some nonprofit and government categories.
Why It Matters
State unemployment rates are among the most closely watched indicators of regional economic health. They influence decisions by businesses, investors, and policymakers, and they help identify areas that may need targeted economic development or workforce support. A rising state unemployment rate can signal weakening demand for labor, while a falling rate often indicates improving job prospects.
Differences in state unemployment rates also reflect structural factors such as industry composition, educational attainment, and population growth. For example, states with large tourism or energy sectors may experience more seasonal or cyclical swings, while states with diversified economies may be more stable.
Factors Behind the Trend
Several factors can drive differences in state unemployment rates. Industry mix is a major influence: states with heavy concentrations in manufacturing, energy, or leisure and hospitality may see larger swings than states dominated by healthcare, education, or government. Labor force participation also matters; if more people enter or re-enter the labor force, the unemployment rate can rise even when job growth is positive, because more people are counted as actively seeking work.
Migration and population change can also affect state rates. Rapid population growth may increase labor supply faster than job creation, temporarily raising unemployment, while out-migration can reduce the labor force and lower the rate. Policy differences, such as minimum wage levels, tax structures, and business regulations, may also play a role, though their effects are often debated.
Limitations of the Data
State-level unemployment estimates are subject to greater sampling error than the national rate because they rely on smaller sample sizes. The BLS publishes state rates as preliminary and revises them as more data become available. Seasonal adjustment can also introduce uncertainty, especially for smaller states or during unusual economic periods.
Additionally, the unemployment rate does not capture underemployment, discouraged workers who have stopped looking for work, or the quality of jobs. For a fuller picture of state labor markets, analysts often look at labor force participation rates, employment-to-population ratios, and nonfarm payroll employment changes alongside the unemployment rate.
Source & Data Date
Primary source: U.S. Bureau of Labor Statistics, State Employment and Unemployment (Monthly) News Release, June 2026 results, released July 21, 2026. Data are seasonally adjusted and preliminary for June 2026. Additional data were obtained from BLS charts and tables: State unemployment rates, seasonally adjusted; Table 1. Civilian labor force and unemployment by state; and Unemployment rate, 12-month change, and number of unemployed by state. Full URLs are listed in the references.
FAQ
What is the current U.S. unemployment rate?
In June 2026, the national unemployment rate was 4.2 percent, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. This was little changed from May 2026 and from June 2025.
Which state has the lowest unemployment rate?
Hawaii had the lowest unemployment rate among states in June 2026 at 2.6 percent. Maine was second lowest at 3.1 percent.
Which state has the highest unemployment rate?
The District of Columbia had the highest rate at 6.0 percent, followed by California and Connecticut at 5.2 percent each. Among states, California and Connecticut tied for the highest rate.
How does the BLS calculate state unemployment rates?
The BLS uses the Local Area Unemployment Statistics (LAUS) program, which combines data from the Current Population Survey, the Current Employment Statistics survey, and state unemployment insurance claims to produce monthly state-level estimates. Rates are seasonally adjusted.
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