Which State has the Highest Unemployment Rate in the U.S.? Check List Here

As of February 2026, the overall unemployment rate in the United States currently remains at 4.4%, a slight rise from the previous month by 0.1 percentage point. The overall unemployment rate represents a percentage of individuals in the labor force who are actively seeking employment but currently do not possess a job. 

This rate is one of the most commonly tracked metrics when assessing the overall economy within a nation. Over time, the overall unemployment rate tends to rise during a recession or shortly thereafter, as a result of a decrease in overall economic activity, leading organizations to reduce costs through a reduction in employment levels. 

Although the overall unemployment rate provides a sense of the overall economy, this situation varies from state to state, with some states possessing a near-full employment rate and others possessing a much higher overall unemployment rate than the average.

What is the current United States unemployment rate?

Not all states are created equal when it comes to employment. While the average unemployment rate in the country is 4.4% as of early 2026, some states are way above the average. 

California, New Jersey, and Delaware have the highest unemployment rates among states in the country as of December 2025. The District of Columbia, although not considered a state, leads the pack with an unemployment rate of 6.7%. 

List of 7 U.S. States with the Highest Unemployment Rate in 2026

Here is the list of the top 7 most affected states with the highest unemployment rate in 2026:

1. California

California has the highest unemployment rate compared to other states in the US. Its current unemployment rate is at 5.5% as of December 2025. Although it is the biggest economy in the US, California faces problems of high living costs, heavy business regulations, and a large number of low-wage workers in the agricultural and tourism industries. As technology is leading in the state, it does not provide enough jobs for everyone.

2. New Jersey

New Jersey has always struggled with the decline of its manufacturing industry. Many people have lost work in factories and warehouses over the years. In addition, high taxes and living expenses have forced some businesses and workers to go to neighboring states like New York and Pennsylvania.

3. Delaware

Delaware is one of the states that is considered to be business-friendly on paper, but unfortunately, it has an unemployment rate of 5.2%. Being one of the smallest states, Delaware is very sensitive to economic changes. The decline of the chemical industry, being one of the leading industries in the state, has resulted in an unemployment gap.

4. Nevada

Nevada has a largely tourist, hospitality, and gaming-based economy, which makes it susceptible to economic fluctuations and changing consumer behavior. Nevada currently has an unemployment rate of 5.2% as of December 2025. Also, a decline in tourist numbers results in a corresponding rise in job losses in hotels, gaming, and food outlets.

5. Oregon

Oregon also shares the same rate, and the state is witnessing increasing unemployment rates, especially because of the slowdown in its technology and timber industries. The Portland metropolitan area, for instance, was known for its growing technology industry, but the post-pandemic recovery was a challenge, and increasing homelessness is also affecting the overall economic environment.

6. Michigan

Michigan's labor market is still largely driven by the automotive sector. However, as the automotive industry is moving from traditional vehicles to electric vehicles, the workforce in the manufacturing industries is uncertain. Michigan's unemployment rate was 5.0% as of December 2025

7. South Carolina

South Carolina is actively attracting manufacturing investment, but the rural areas are still behind. Meanwhile, a large portion of the workforce is dominated by low-wage jobs in the agricultural, textile, and tourism industries, where employment is seasonal and unstable.

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The focus is still on regional recovery as the unemployment rate in the United States stays at 4.4%. Many states have record-low unemployment rates, but California, which has the highest unemployment rate, is a sign of a possible economic slowdown. Analysts think that the next BLS release on April 3 will help us understand better if these regional trends will lead to a slowdown in the whole country.