What U.S. State Has the Lowest Unemployment Rate? Top 10 States in the US With the Highest Employment Rate

The United States of America ranks in the top 20 list for the best country to live in. According to Kanan.co, the average cost of living in the US is estimated between $2,500 and $3,500 per month, which includes food, housing, transportation, health care, taxes, and other expenses.

Every individual who has attained the highest level of education seeks a stable job and career, but based on resumable data, if you are into IT Manager, Technical Project Manager, Marketing Manager, or more, these jobs are highly competitive in the U.S. 

So, do you know which US state has the highest employment rate? According to the Bureau of Labour Statistics, South Carolina had the highest employment rate in the United States at 97.7%. In April, the U.S. added 177,000 jobs. This is close to the 12-month average of 152,000.

Health care added 51,000 jobs, mostly in hospitals and clinics. Transportation and warehousing added 29,000 jobs, including delivery and air travel. 

Financial services added 14,000 jobs. Social assistance added 8,000, which is slower than usual. Wages went up slightly. The average hourly pay rose by 6 cents to $36.06. Over the year, it went up by 3.8%.

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List of States in the US With the Highest Employment Rate

According to US News, here are the top 10 states with the highest employment rates:

#1. Vermont

• Area: 9,615 sq. mi.
• GDP: $45.7 billion
• College Educated: 52.5%
• Population: 648,493
• Capital: Montpelier
• Median Income: $46,413

Vermont boasts an unemployment rate of 2.6%, reflecting a robust labour market. The state's economy has consistently added jobs, with over 6,000 positions available through Vermont JobLink. This indicates a strong demand for workers and a healthy employment environment.

#2. South Dakota

• Area: 77,116 square miles
• GDP: $75.2 billion
• College Educated: 45.4% of the population
• Population: 924,669
• Capital: Pierre
• Median Income: $41,959

South Dakota's unemployment rate stands at 1.8% as of April 2025, one of the lowest in the nation. This reflects a tight labour market with high employment levels. The state's economy is bolstered by sectors such as agriculture, healthcare, and financial services, which continue to expand.

#3. Utah

• Area: 84,898 sq. mi.
• GDP: $300.9 billion
• College Educated: 48.1%
• Population: 3,503,613
• Capital: Salt Lake City
• Median Income: $42,385

Utah's unemployment rate is estimated at 3.1% as of April 2025, indicating a strong labour market. The state's economy has added approximately 29,500 jobs over the past year, with significant growth in sectors like education, health services, and construction.

#4. Virginia

• Area: 42,775 sq. mi.
• GDP: $764.5 billion
• College Educated: 50.1%
• Population: 8,811,195
• Capital: Richmond
• Median Income: $50,383

Virginia's unemployment rate is projected to rise to 3.9% in 2025, influenced by anticipated job losses in government sectors. Despite this, the state maintains a relatively low unemployment rate, supported by its strong private sector, particularly in professional, scientific, and technical services.

#5. North Dakota

• Area: 70,699 sq. mi.
• GDP: $75.4 billion
• College Educated: 47.4%
• Population: 796,568
• Capital: Bismarck
• Median Income: $46,063

North Dakota's unemployment rate is estimated at 2.4%, reflecting a healthy labour market. The state's economy is driven by agriculture, energy, and technology sectors, which continue to grow.

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#6. Texas

• Area: 268,596 sq. mi.
• GDP: $2.7 trillion
• College Educated: 42.3%
• Population: 31,290,831
• Capital: Austin
• Median Income: $42,329

Texas' unemployment rate is steady at 4.1% as of April 2025, with the labour force reaching a record high of over 15.8 million people. The state added 35,900 jobs in April alone, continuing a strong trend with growth in 58 of the past 60 months.

#7. Connecticut

• Area: 5,544 sq. mi.
• GDP: $365.7 billion
• College Educated: 50.7%
• Population: 3,675,069
• Capital: Hartford
• Median Income: $51,091

Connecticut's unemployment rate decreased to 3.3% in January 2025, down from 11.8% in May 2020. The state added 16,000 jobs in 2024, surpassing its pre-pandemic figures from early 2020.

#8. Oklahoma

• Area: 69,899 sq. mi.
• GDP: $265.8 billion
• College Educated: 37.0%
• Population: 4,095,393
• Capital: Oklahoma City
• Median Income: $39,057

Oklahoma's unemployment rate is estimated at 3.3%, indicating a stable labour market. The state's economy is supported by industries such as energy, agriculture, and aerospace, which continue to expand.

#9. Idaho

• Area: 83,569 sq. mi.
• GDP: $128.1 billion
• College Educated: 41.6%
• Population: 2,001,619
• Capital: Boise
• Median Income: $40,098

Idaho's unemployment rate is estimated at 3.7%, reflecting a healthy labour market. The state's economy has approximately 46,000 job openings, with a job openings rate of 5.0% in January 2025.

#10. Montana

• Area: 147,043 sq. mi.
• GDP: $76.0 billion
• College Educated: 45.0%
• Population: 1,137,233
• Capital: Helena
• Median Income: $40,418

Montana's unemployment rate stands at 3.2% as of November 2024, indicating a strong labour market. The state's economy is bolstered by sectors such as agriculture, tourism, and manufacturing, which continue to grow.

What State Has the Highest Employment Rate in the USA?

South Dakota boasts the lowest unemployment rate in the United States at 1.8%, according to the U.S. Bureau of Labour Statistics. This rate is significantly below the national average of 4.2%. 

The state's robust labour market is characterised by a growing labour force, which increased by 700 workers to 493,600 in April, and a decrease in the number of unemployed individuals to 9,000.

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