Insider Monkey
20 States with the Lowest Unemployment Rates
Afifa Mushtaque
11 min read

In This Article:

This article will look at the 20 states with the lowest unemployment rates. We have also extensively discussed the job market in the US along with some key players. If you want to skip our detailed analysis, head straight to the 5 States with the Lowest Unemployment Rates. 

In 2023, global unemployment is expected to be 191 million, translating to a 5.3% unemployment rate. Low-income countries in Africa and the Arab region face higher unemployment rates, with North Africa at 11.2%, Sub-Saharan Africa at 6.3%, and the Arab States at 9.3%. Low-income countries have a huge 'jobs gap' rate of 21.5%, middle-income countries have an 11% rate, and high-income countries have the lowest rate at 8.2%. It is worth highlighting the country with the lowest unemployment rate is Qatar whereas country with the highest unemployment rate is  South Africa. 

In September 2023, the United States saw a phenomenal job increase as nonfarm payrolls increased by 336,000. This marked the biggest increase in number of jobs in eight months and spoke volumes about the strength of the US labor market. The unemployment rate in the US has stood at 3.8%, and average hourly earnings have so far grown by 0.2%, resulting in a year-on-year increase of 4.2%. The lowest unemployment rate in US history was recorded in May 1995 at 2.5%.

The unexpected strength of the US economy in the face of rising interest rates and high inflation has defied gloomy predictions. Last year, the country experienced a spike in inflation, reaching its highest level in four decades. Economists expected that as the Federal Reserve raised interest rates to combat inflation, it would result in reduced consumer and business spending, job cuts, and the potential for unemployment to increase, possibly reaching 7% or more, double its level when the Fed began tightening credit.

Contrary to expectations, as interest rates have increased, inflation has dropped from its peak of 9.1% in June 2022 to 3.7%, and the unemployment rate has remained low at 3.8% since March 2022. This situation has raised the possibility of a rare and challenging "soft landing," where inflation is controlled without causing a severe recession.

Several factors have contributed to this positive state of employment in the US, like consumer savings, and business adaptability. As the US economy continues to navigate these dynamics, it remains to be seen how long this resilience will persist, especially as the Federal Reserve intends to maintain high-interest rates into 2024.

Tech corporations, on the other hand, have laid off a huge number of employees amid inflationary pressures. Alphabet Inc (NASDAQ:GOOG) has initiated another round of layoffs for its recruiting division, with plans to let go of hundreds of recruiters. This action comes as Google continues with its cost-cutting, which began earlier in the year. The recruiting department, once comprising over 3,000 employees, had previously witnessed layoffs this year. 

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories