Unemployment Rates Continued to Creep Higher
Source: Economics Group of Wells Fargo Bank, N.A.
Summary
State Labor Markets in Good Shape
- State-level employment mirrored national developments in May, with pickups in both nonfarm payrolls and jobless rates across states.
- Payrolls moved higher in 41 states over the month, greater than April’s upwardly revised count of 39.
- California and Texas led the nation with over 40K net headcounts added in each state. The next highest gains were in New York and Ohio, which added just over 20K jobs each. For Ohio, May marked the highest payroll print since October 2021.
- Nine states shed payrolls over the month. Minnesota posted the sharpest drop, losing over 8K jobs. As discussed in States in Focus, however, Minnesota’s payroll dip was fairly concentrated and likely overstates its labor market weakness.
- Unemployment rates edged higher in 16 states, were unchanged in 21 states and ticked down in 13 states. Although unemployment rate movements were fairly balanced, the number of states with higher jobless rates over the month reached its highest count since February (chart). That said, unemployment rates remain historically low on balance.
- California’s continues to shoulder the highest jobless rate in the country, which dipped slightly to 5.2% in May. Nevada followed closely behind with a 5.1% rate. Meanwhile, North and South Dakota posted the lowest unemployment rates at 2.0% each.