Meta Description: Each month, Mployer Advisor breaks down the Bureau of Labor Statistics’ most recent State Employment and Unemployment Summary to highlight some employment trends across various markets. This is an overview of May’s report.
The Market Employment Summary for May 2024
Editor's Note: This report is based on survey data from April 2024 that was published in May 2024. This is the most recent data available. (Source: Bureau of Labor Statistics)
As the national unemployment rate ticked back up a tenth of a point to 3.9%, only 2 states actually recorded an increase in their internal unemployment rates - Florida and Maryland, both of which saw their unemployment rates climb by plus 0.1%.
5 states actually saw their unemployment rates decrease while the remaining 43 states and Washington DC saw no meaningful change in unemployment over the month.
In total only 5 states plus Washington DC have unemployment rates that are above the US national average of 3.9%, while about 24 states have unemployment rates that are below the national average.
Although US employers added a sturdy (albeit below trend) 175 thousand new jobs to their payrolls last month, only 6 states registered a net increase in jobs, led by Florida and Missouri, while payroll figures in the remaining 44 states and Washington DC remained largely unchanged from the month before.
Below is the breakdown of the Bureau of Labor Statistics’ (BLS) market employment summary for May 2024.
For the third month in a row, California has recorded the highest unemployment rate which has been hovering at 5.3%.
Washington DC had the next highest unemployment rate, coming in at 5.2% for the second consecutive month, followed by Nevada at 5.1%.
Illinois, New Jersey, and Washington state aren’t far behind at 4.8%, 4.7%, and 4.8% unemployment, respectively, with all other states coming in at or below the US national average of 3.9%.
Over the course of the last year, about 60% of states have seen an increase in their unemployment rates, led by Rhode Island, Connecticut, and Washington state, which saw their in-state unemployment rates rise over the last 12 months by 1.4%, 1.1%, and 1.0%, respectively, while 27 other states saw increases of less than 1% over the year.
For the fourth month in a row, North Dakota and South Dakota have had the lowest unemployment rates, this time tied at 2.0%, followed by Vermont at 2.1%.
In total there are 24 states that have unemployment rates below the US national average, 15 of which register below 3.0%.
Of the 5 states that recorded a reduction in unemployment rate last month, Virginia at minus 0.1% was the only state to record less than the 0.2% reductions recorded by Arizona, Maine, Mississippi, and Montana.
Over the course of the last 12 months, Massachusetts was the only state that saw a net decrease in unemployment rate at minus 0.3%.
No states saw statistically significant job losses last month/year.
A total of 6 states saw their payrolls increase last month.
Florida claimed the largest number of new jobs added at about plus 45 thousand - closely followed by Texas at about plus 43 thousand.
The largest percentage gain of net jobs, however, went to Missouri at plus 0.6% (almost 17 thousand net new jobs) over the month, followed by Floida at plus 0.5% and Alabama at plus 0.4% (about 9 thousand net new jobs).
Over the last 12 months, Texas netted the most jobs at just over 300 thousand, followed by Florida and California at about 240 thousand and about 200 thousand, respectively, while South Carolina and Nevada netted the largest percentage increase in jobs at 3.4% apiece.
31 states in total have seen their jobs figures increase over the last year.
Inflation fell to a 3.4% annualized rate in April, which led to rallies in the markets at least in part on the revived hope that this kind of report may inspire the Fed to implement a decrease in interest rates sooner than later.
The Fed had previously signaled that potentially 3 interest rate cuts were penciled in for 2024, but unexpected inflationary spikes - despite being mild and short-lived - had made those cuts seem increasingly less likely as the year has progressed. The latest inflation data, however, has many observers speculating that the rate cuts are more likely back on the table.
Not everyone is convinced, however, that the inflationary tides have yet turned, including JPMorgan CEO who has been outspoken in recent days claiming that the inflationary forces will likely have longer staying power than most people, including economists, are expecting.
Perhaps even more tellingly, consumer confidence recently hit its lowest level since 2022, dropping below the baseline of 100 down to 97 - pretty much exactly where it was in the summer of 2020 when similar considerations about the economy and future direction of the country were at the forefront of many people’s minds.
In any case, the next few months are poised to provide a lot more insight than the last few months about what the next year is likely to look like on an economic front, and we’ll return to assess the additional data as it arrives.
Looking for more exclusive content? Check out the Mployer Advisor blog.
.svg){kind=small}
.svg){kind=small}
%201.svg){kind=small}
