California, the District of Columbia and Nevada are struggling with an unemployment rate above the national figure, while the Dakotas boast the lowest jobless market in the country, data from the U.S. Bureau of Labor Statistics showed on Friday.
The U.S. labor market has demonstrated resilience despite borrowings costs that are at their highest in more than two decades. The Federal Reserve raised its funds rate starting in March 2022 in what experts said was the most aggressive pace of hikes since the 1980s to battle record high inflation. The move tightened financial conditions and contributed to a jump in the cost of loans across the economy, including for business investment.
But companies have continued to hire, with millions of job openings available for Americans looking for work in February. Last month also saw employers hire 275,000 people, even as the unemployment rate ticked up to 3.9 percent.
The labor market, however, operates differently among the states. California reported its unemployment rate to be at 5.3 percent in February, significantly higher than the national rate. Washington, D.C., reported the jobless rate above 5 percent, as did Nevada.
California is still grappling with the effects of the pandemic-induced economic crisis, which may explain its high unemployment rate, according to experts. Nevada, whose economy is heavily reliant on tourism, was one of the hardest hit by the COVID-induced slowdown. In April 2020, the jobless rate in the state soared to 34 percent, and while the current rate is elevated, it illustrates the recovery the region has managed.
On a monthly basis, some states saw their jobless rates grow. Rhode Island jumped by 0.3 percent to 3.9 percent for the month, Connecticut increased by 0.1 percent to 4.5 percent and Washington saw its rate shoot up by 0.1 percent to 4.7 percent.
When it comes to which parts of the country saw the highest job gains in real terms, Texas added more than 290,000 jobs, followed by Florida at 226,000 and California, which added nearly 180,000, a positive signal despite its elevated unemployment rate.
On the positive front, North Dakota at 2 percent had the lowest unemployment rate in the nation, followed by neighboring South Dakota, which had a 2.1 percent jobless rate in February, both substantially lower than the national rate.
"In total, 22 states had unemployment rates lower than the U.S. figure of 3.9 percent, 6 states and the District of Columbia had higher rates, and 22 states had rates that were not appreciably different from that of the nation," the Bureau of Labor Statistics pointed out.
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