Most States End Q1 on a High Note
Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Unemployment Rates Receding in More States
- Job growth was widespread in March as 44 states added jobs over the month, the highest share since June 2023. Similar to national trends, the pace of job growth broadly picked up across states in Q1.
- California and New York led the nation with payroll gains of 28,300 and 23,900, respectively. Texas came in at third place with a 19,100 addition. Hiring strength was well distributed, with 12 states registering net gains of 10,000 jobs or more.
- Just six states shed payrolls over the month. West Virginia lost 2,000 jobs, and Wisconsin payrolls contracted by 1,700. North Dakota was the only state to register back-to-back job losses as payrolls fell by a combined 1,200 over February and March.
- After creeping up to start the year, unemployment rates appear to be inching back down (chart). Unemployment rates rose in eight states over the month, declined in 14 and were unchanged in 28. The count of states experiencing a trend increase in the unemployment rate fell to 19 (chart), the lowest count since June 2023.
- Arizona’s unemployment rate improved to 3.8% from 4.1%, the lowest since June 2023. Nevada’s jobless rate improved for a second straight month, falling to 5.1% from 5.2%. Nevada holds the second highest unemployment rate in the nation, but the state has added jobs in seven of the last eight months, and the recent decline indicates that the labor market is trending in the right direction.