Unemployment rates fell in 5 states in September 2026 and were stable in the other 45 and the District of Columbia, the Bureau of Labor Statistics reported on October 20. South Dakota had the lowest rate at 2.0 percent. The District of Columbia had the highest at 5.6 percent. The national rate was 4.2 percent.
Key takeaways
- Lowest rates: South Dakota 2.0 percent, North Dakota 2.2 percent.
- Highest: the District of Columbia at 5.6 percent, then California at 5.1 and Michigan at 5.0.
- Over the year, Texas added 154,300 jobs, California 129,300 and North Carolina 67,000.
- South Carolina had the fastest job growth at 2.3 percent.
- The October state report is due on November 20, 2026.
What happened in September?
Five states saw jobless rates drop over the month: Maryland and New Hampshire fell 0.2 percentage point each, and Florida, Nevada and Pennsylvania fell 0.1 point each. Payroll jobs rose in New Jersey (up 14,900) and South Carolina (up 12,500), and fell in Wisconsin (down 13,700). Every other state was essentially flat.
Compared with a year earlier, 20 states and the District had lower unemployment. New Jersey showed the biggest drop, from 5.5 percent to 4.2. Seven states had increases, led by Connecticut, up 0.9 point to 5.1 percent. Alabama and Hawaii each rose 0.7 point.
Which states are adding the most jobs?
Over the year to September, payrolls grew significantly in seven states. In raw numbers, Texas, California and North Carolina led. In percentage terms, South Carolina (2.3 percent), Louisiana (1.8 percent) and Utah (1.5 percent) grew fastest. Minnesota also added 36,800 jobs. The only significant loss was in the District of Columbia, down 25,800 jobs, or 3.5 percent, as federal cuts continued to hit the capital.
Who is affected?
These numbers matter most if you are thinking about moving for work or looking in a state with a high jobless rate. Low unemployment states such as the Dakotas, New Hampshire and Vermont tend to have more openings per job seeker, but they are small labour markets. Large states like Texas and California add many more jobs in total, even though California's rate is above the national average.
Workers in the Washington, DC area, especially former federal staff and contractors, face the toughest local market, with a 5.6 percent rate and a falling job count.
What should job seekers do now?
- Check your state's own labour department page for local openings and job fairs.
- If you can relocate, look at fast-growing states such as South Carolina, Utah and Louisiana.
- If you are in a high-unemployment area, widen your search to remote roles with our remote job boards guide.
- Use our jobs report calendar to track the next national figures.
The metro area figures for September are due on October 28, which will show which cities are doing best. For the national picture, read our coverage of the September jobs report.
What happens next?
State data are preliminary and are often revised. BLS will publish the October state figures on Friday, November 20, 2026, at 10:00 a.m. Eastern time.
Source: U.S. Bureau of Labor Statistics, State Employment and Unemployment, September 2026.
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