Short Answer
The U.S. labor market entered mid-2026 with a national unemployment rate of 4.2 percent, little changed from May 2026 and from June 2025, according to the U.S. Bureau of Labor Statistics (BLS) State Employment and Unemployment release published July 21, 2026. Beneath that national stability, however, state-level conditions varied widely: unemployment rates were lower over the month in 8 states, higher in 2 states, and stable in 40 states and the District of Columbia. Over the year, 13 states recorded jobless rate increases, 7 recorded decreases, and 30 states and the District saw little change. This article breaks down the latest official data, ranks states by unemployment rate, examines 12-month changes, and explains how the figures are calculated and what they mean.
Key Numbers
- National unemployment rate: 4.2% in June 2026, little changed over the month and year.
- Monthly state changes: Lower in 8 states, higher in 2, stable in 40 states and D.C.
- Year-over-year state changes: Increases in 13 states, decreases in 7, little change in 30 states and D.C.
- Nonfarm payroll employment (monthly): Increased in 3 states, decreased in 1, essentially unchanged in 46 states and D.C.
- Largest 12-month rate increase: Connecticut, +1.3 percentage points to 5.2%.
- Largest 12-month rate decline: Indiana, -0.4 percentage points to 3.3%.
- Highest state unemployment rate: District of Columbia, 6.0%.
- Lowest state unemployment rate: Hawaii, 2.6%.
Explanation
The unemployment rate is one of the most closely watched indicators of economic health. It measures the share of the civilian labor force that is not working but is actively looking for a job. In the United States, the Bureau of Labor Statistics produces two related but distinct sets of employment data: the Current Population Survey (CPS), which yields the unemployment rate, and the Current Employment Statistics (CES) survey, which yields nonfarm payroll employment. The state-level figures in this article come from the Local Area Unemployment Statistics (LAUS) program, which combines CPS data with other sources to produce monthly estimates for all 50 states and the District of Columbia.
In June 2026, the national unemployment rate was 4.2 percent, essentially unchanged from April and May 2026 and from June 2025. That stability at the national level masked considerable variation among states. For example, Hawaii had the lowest jobless rate among the states shown in the BLS release at 2.6 percent, while the District of Columbia had the highest at 6.0 percent. Connecticut, Florida, Illinois, Arizona, and Minnesota recorded some of the largest year-over-year increases, while Indiana, Iowa, California, and Alaska saw declines.
Nonfarm payroll employment, which counts jobs rather than people, also showed a pattern of broad stability. Over the month, payroll employment increased in only 3 states, decreased in 1 state, and was essentially unchanged in 46 states and the District of Columbia. Over the year, payroll employment increased in 4 states, decreased in 1 state and the District, and was essentially unchanged in 45 states. This suggests that the U.S. labor market in mid-2026 was characterized more by flat job growth than by widespread gains or losses.
Definition
In official U.S. labor statistics, the unemployment rate is the number of unemployed people expressed as a percentage of the civilian labor force. The civilian labor force includes all people aged 16 and older who are either employed or unemployed. To be counted as unemployed, a person must be jobless, have actively looked for work in the four weeks preceding the survey, and be currently available for work. People who are not working and not looking for work—such as retirees, students, or discouraged workers—are not counted as unemployed; they are classified as not in the labor force.
Seasonally adjusted data remove the effects of recurring seasonal patterns, such as holiday hiring, summer employment, and weather-related changes, to make month-to-month comparisons more meaningful. The BLS also publishes nonfarm payroll employment, which counts the number of paid jobs in the economy excluding farm workers, private household employees, and a few other categories. Payroll employment can move differently from the unemployment rate because it counts jobs rather than people and because the two series come from different surveys.
State Comparison
State unemployment rates in June 2026 ranged from 2.6 percent in Hawaii to 6.0 percent in the District of Columbia. Among the states with complete data in the BLS release, the highest rates were concentrated in the District of Columbia (6.0 percent), Connecticut and California (5.2 percent each), Illinois (5.1 percent), and Michigan (5.0 percent). The lowest rates were in Hawaii (2.6 percent), Maine (3.1 percent), Alabama and Iowa (3.2 percent each), and Indiana (3.3 percent).
The table below shows selected states with complete unemployment and labor force data from the June 2026 BLS release. The number of unemployed is the seasonally adjusted count of people actively seeking work.
| State | June 2026 unemployment rate | 12-month change (percentage points) | Number unemployed |
|---|---|---|---|
| Alabama | 3.2 | 0.3 | 76,641 |
| Alaska | 4.4 | -0.2 | 16,278 |
| Arizona | 4.9 | 0.6 | 180,957 |
| Arkansas | 4.1 | 0.1 | 59,655 |
| California | 5.2 | -0.3 | 1,024,085 |
| Colorado | 3.9 | -0.1 | 124,750 |
| Connecticut | 5.2 | 1.3 | 97,578 |
| Delaware | 4.9 | 0.2 | 25,125 |
| District of Columbia | 6.0 | -0.2 | 24,350 |
| Florida | 4.7 | 0.9 | 524,559 |
| Georgia | 3.4 | 0.1 | 183,630 |
| Hawaii | 2.6 | 0.3 | 17,919 |
| Idaho | 3.7 | 0.1 | 36,768 |
| Illinois | 5.1 | 0.8 | 329,720 |
| Indiana | 3.3 | -0.4 | 114,976 |
| Iowa | 3.2 | -0.3 | 55,211 |
| Kansas | 3.8 | 0.1 | 59,708 |
| Kentucky | 4.7 | 0.1 | 98,200 |
| Louisiana | 4.4 | 0.1 | 94,099 |
Additional states are available in the full BLS table; the excerpt above includes states for which both the unemployment rate and the number of unemployed were reported in the source data.
National Comparison
The national unemployment rate of 4.2 percent in June 2026 was little changed from May 2026 and from June 2025. The BLS reported that unemployment rates were lower over the month in 8 states, higher in 2 states, and stable in 40 states and the District of Columbia. Over the year, 13 states had jobless rate increases, 7 states had decreases, and 30 states and the District had little change.
Nonfarm payroll employment showed a similar pattern of stability. Over the month, payroll employment increased in 3 states, decreased in 1 state, and was essentially unchanged in 46 states and the District of Columbia. Over the year, payroll employment increased in 4 states, decreased in 1 state and the District, and was essentially unchanged in 45 states. This broad stability suggests that the U.S. labor market was not experiencing a sharp downturn or rapid expansion in mid-2026, but rather a period of relatively flat job growth across most of the country.
- National unemployment rate: 4.2 percent
- Monthly change in national rate: little changed
- Year-over-year change in national rate: little changed
- States with monthly rate decreases: 8
- States with monthly rate increases: 2
- States with year-over-year rate increases: 13
- States with year-over-year rate decreases: 7
Ranking Table
The table below ranks states and the District of Columbia by their seasonally adjusted unemployment rate in June 2026, from highest to lowest. The 12-month change shows the difference from June 2025.
| Rank | State | June 2026 rate | June 2025 rate | 12-month change |
|---|---|---|---|---|
| 1 | District of Columbia | 6.0 | 6.2 | -0.2 |
| 2 | Connecticut | 5.2 | 3.9 | 1.3 |
| 3 | California | 5.2 | 5.5 | -0.3 |
| 4 | Illinois | 5.1 | 4.3 | 0.8 |
| 5 | Michigan | 5.0 | 5.0 | 0.0 |
| 6 | Arizona | 4.9 | 4.3 | 0.6 |
| 7 | Delaware | 4.9 | 4.7 | 0.2 |
| 8 | Florida | 4.7 | 3.8 | 0.9 |
| 9 | Kentucky | 4.7 | 4.6 | 0.1 |
| 10 | Alaska | 4.4 | 4.6 | -0.2 |
| 11 | Louisiana | 4.4 | 4.3 | 0.1 |
| 12 | Massachusetts | 4.4 | 4.4 | 0.0 |
| 13 | Minnesota | 4.4 | 3.8 | 0.6 |
| 14 | Maryland | 4.3 | 4.1 | 0.2 |
| 15 | Arkansas | 4.1 | 4.0 | 0.1 |
| 16 | Colorado | 3.9 | 4.0 | -0.1 |
| 17 | Kansas | 3.8 | 3.7 | 0.1 |
| 18 | Mississippi | 3.8 | 3.8 | 0.0 |
| 19 | Idaho | 3.7 | 3.6 | 0.1 |
| 20 | Georgia | 3.4 | 3.3 | 0.1 |
| 21 | Indiana | 3.3 | 3.7 | -0.4 |
| 22 | Alabama | 3.2 | 2.9 | 0.3 |
| 23 | Iowa | 3.2 | 3.5 | -0.3 |
| 24 | Maine | 3.1 | 3.3 | -0.2 |
| 25 | Hawaii | 2.6 | 2.3 | 0.3 |
Rates are seasonally adjusted. The table includes all states and the District of Columbia for which data were available in the BLS release excerpt used for this article.
Year-over-Year Change
Between June 2025 and June 2026, 13 states recorded statistically significant increases in their unemployment rates, 7 states recorded decreases, and 30 states and the District of Columbia saw little change. The largest increases were in Connecticut (+1.3 percentage points), Florida (+0.9), Illinois (+0.8), Arizona (+0.6), and Minnesota (+0.6). The largest declines were in Indiana (-0.4), Iowa (-0.3), California (-0.3), Alaska (-0.2), the District of Columbia (-0.2), and Maine (-0.2).
The table below highlights the five largest year-over-year increases and the five largest decreases among the states shown in the BLS release.
| Direction | State | June 2025 rate | June 2026 rate | 12-month change |
|---|---|---|---|---|
| Largest increase | Connecticut | 3.9 | 5.2 | 1.3 |
| Largest increase | Florida | 3.8 | 4.7 | 0.9 |
| Largest increase | Illinois | 4.3 | 5.1 | 0.8 |
| Largest increase | Arizona | 4.3 | 4.9 | 0.6 |
| Largest increase | Minnesota | 3.8 | 4.4 | 0.6 |
| Largest decline | Indiana | 3.7 | 3.3 | -0.4 |
| Largest decline | Iowa | 3.5 | 3.2 | -0.3 |
| Largest decline | California | 5.5 | 5.2 | -0.3 |
| Largest decline | Alaska | 4.6 | 4.4 | -0.2 |
| Largest decline | District of Columbia | 6.2 | 6.0 | -0.2 |
It is important to note that the BLS uses statistical significance tests to determine whether a change is meaningful. Small changes may not be statistically different from zero, especially in smaller states where sampling error is larger.
Methodology
The state unemployment rates in this article come from the Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) program. LAUS produces monthly and annual estimates of the labor force, employment, unemployment, and the unemployment rate for all states, the District of Columbia, and many substate areas. The estimates are based on the Current Population Survey (CPS), a monthly survey of about 60,000 households, combined with data from the Current Employment Statistics (CES) survey, state unemployment insurance claims, and other sources.
All figures cited here are seasonally adjusted, meaning the BLS has removed recurring seasonal patterns to allow for more accurate month-to-month and year-to-year comparisons. The June 2026 data are preliminary and may be revised in subsequent releases. The BLS news release for June 2026 was published on July 21, 2026, under the title State Employment and Unemployment (Monthly) News Release, USDL-26-1256.
Nonfarm payroll employment data come from the CES survey, which samples about 119,000 businesses and government agencies. Payroll employment counts jobs, not people, so a person with two jobs is counted twice. The unemployment rate, by contrast, counts people and is based on the CPS. The two series can therefore show different short-term movements.
Why It Matters
The unemployment rate is a key measure of labor market slack and economic well-being. A low unemployment rate generally indicates that most people who want to work can find jobs, while a high rate signals that job opportunities are scarce. State unemployment rates matter for several reasons. They influence state and local tax revenues, demand for social services, and the fiscal health of unemployment insurance trust funds. They also guide decisions by businesses, workers, and policymakers.
At the national level, the Federal Reserve monitors unemployment as part of its dual mandate to promote maximum employment and stable prices. Persistent changes in state unemployment rates can signal regional economic shifts, such as the decline of a particular industry or the effects of migration and population change. For individuals, the unemployment rate affects job search prospects, wage bargaining power, and household financial security.
In June 2026, the national rate of 4.2 percent was relatively low by historical standards, but the variation across states—from 2.6 percent in Hawaii to 6.0 percent in the District of Columbia—shows that labor market conditions were not uniform. States with rising unemployment rates, such as Connecticut, Florida, and Illinois, may face different economic pressures than states with declining rates, such as Indiana, Iowa, and California.
Factors Behind the Trend
State unemployment rates are shaped by a combination of national and local factors. National monetary policy, overall economic growth, and consumer demand affect all states, but the mix of industries, the age and education of the workforce, and population flows can cause states to diverge. For example, states with large tourism, construction, or manufacturing sectors may experience different seasonal and cyclical patterns than states dominated by technology, finance, or government employment.
The June 2026 BLS release showed broad stability in nonfarm payroll employment, with increases in only 3 states over the month and 4 states over the year. This suggests that the national labor market was not generating widespread job gains in mid-2026. At the same time, the unemployment rate can rise or fall even when payroll employment is flat if the size of the labor force changes. People entering or leaving the labor force—because of migration, retirement, or changes in labor force participation—can move the unemployment rate independently of job creation.
Some of the year-over-year increases in state unemployment rates may reflect labor force growth rather than job losses. For instance, if more people begin looking for work and are not immediately hired, the unemployment rate can rise even if employment is stable. Conversely, a declining unemployment rate can occur if people stop looking for work and leave the labor force. The BLS data alone do not always reveal the underlying cause, which is why analysts also examine payroll employment, labor force participation, and other indicators.
How the Statistic Is Calculated
The unemployment rate is calculated using the following formula:
Unemployment rate = (Number of unemployed ÷ Civilian labor force) × 100
The civilian labor force is the sum of employed and unemployed people aged 16 and older. To be classified as unemployed, a person must meet three criteria: they must not have a job, they must have actively looked for work in the four weeks before the survey, and they must be currently available to start a job. People who are not working and not looking for work are classified as not in the labor force and are not included in the unemployment rate.
The BLS seasonally adjusts the data to remove predictable seasonal patterns. For example, employment often rises in the summer and falls after the holiday season. Seasonal adjustment uses statistical models to estimate what the data would look like without these recurring fluctuations. The seasonally adjusted unemployment rate is the figure most commonly reported in news releases and used for comparisons across months and years.
State-level estimates are produced using a model-based approach that combines survey data with other administrative records. Because the CPS sample is relatively small for individual states, the BLS uses a signal-plus-noise model to improve the reliability of state estimates. The resulting figures are still subject to sampling error, and small month-to-month changes may not be statistically significant.
Limitations of the Data
State unemployment data have several limitations that users should keep in mind. First, the figures are preliminary and subject to revision as more complete data become available. The June 2026 estimates in this article were published in July 2026 and may be revised in later months.
Second, state-level estimates have larger sampling errors than national estimates because the underlying survey sample is smaller for individual states. The BLS does not publish standard errors for every state in the monthly news release, but small changes—especially in less populous states—may not be statistically significant. The BLS uses statistical tests to determine whether a state’s unemployment rate changed over the month or year; when it says a rate was stable, it means the change was not statistically different from zero.
Third, the unemployment rate does not capture all forms of labor market distress. It excludes discouraged workers who have stopped looking for work because they believe no jobs are available, as well as people who are working part-time but would prefer full-time work. These groups are captured in broader measures of labor underutilization, such as the U-6 rate, which are not available for all states in the monthly release.
Finally, the unemployment rate and nonfarm payroll employment come from different surveys and measure different things. The unemployment rate counts people, while payroll employment counts jobs. A person with multiple jobs is counted once in the unemployment rate but multiple times in payroll employment. The two series can therefore diverge, especially during periods of rapid labor force change.
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 (USDL-26-1256). Supporting data tables: State unemployment rates, seasonally adjusted; Table 1. Civilian labor force and unemployment by state, seasonally adjusted; Unemployment rate, 12-month change in the unemployment rate, and number of unemployed by state, seasonally adjusted. All figures are seasonally adjusted and preliminary. Full data are available at the BLS website.
FAQ
What was the U.S. unemployment rate in June 2026?
The national unemployment rate was 4.2 percent in June 2026, little changed from May 2026 and from June 2025, according to the Bureau of Labor Statistics.
Which state had the highest unemployment rate in June 2026?
The District of Columbia had the highest unemployment rate at 6.0 percent. Among states, Connecticut and California tied at 5.2 percent.
Which state had the lowest unemployment rate in June 2026?
Hawaii had the lowest unemployment rate at 2.6 percent, followed by Maine at 3.1 percent and Alabama and Iowa at 3.2 percent each.
How many states saw unemployment rate increases over the year?
Thirteen states recorded jobless rate increases from June 2025 to June 2026, while 7 states had decreases and 30 states and the District of Columbia saw little change.
What is the difference between seasonally adjusted and not seasonally adjusted unemployment data?
Seasonally adjusted data remove recurring seasonal patterns, such as holiday hiring and summer employment, to allow for more accurate month-to-month and year-to-year comparisons. Not seasonally adjusted data reflect actual reported figures without these adjustments.
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