Unemployment Rates by City in June 2025

In June 2025, the unemployment rate stood at 4.1% and the number of unemployed people at 7 million. This showed little change since May 2025. In fact, the unemployment rate has remained in a narrow range of 4% to 4.2% since May 2024.

Unemployment rates were lower in June in 2 states, higher in 1 state, and stable in 47 states and the District of Columbia, the U.S. Bureau of Labor Statistics reported Nineteen states and the District had jobless rate increases from a year earlier, 4 states had decreases, and 27 states had little change.

South Dakota had the nation’s lowest state unemployment rate in June 2025, 1.8%. The District of Columbia had the highest jobless rate, 5.9 percent. The next highest rates were in California and Nevada, 5.4% each. In total, 18 states had unemployment rates lower than the U.S. figure of 4.1%, 6 states and the District had higher rates, and 26 states had rates that were not appreciably different from that of the nation.

An unemployment rate of between 4% and 5% is still considered low for the U.S. But while low levels of unemployment sounds like great news for American workers, it presents challenges too. Economists say that inflation cannot ease significantly while unemployment is low.

For small businesses, the problem can be particularly acute. Not only is it hard to fill job openings, but salary pressure increases and if there aren’t enough skilled workers, the business can stagnate or slump.

Looking At Unemployment Data By City

In this story, we are taking a look at unemployment rates by city to get a feel for the job landscape across America. Using U.S. Bureau of Labor Statistics (BLS) data, we have created a list that ranks the jobless statistics for the cities that show the largest populations within their respective states.

On our list, Los Angeles, California, is the city with the highest unemployment in America, followed by Las Vegas, Nevada, and then Newark, New Jersey. Within this list, many fascinating — and even contradictory — trends are revealed that have bearing on small business owners.

Recommended: Best Cities to Start a Small Business

What is the Unemployment Rate and How Is it Calculated?

The U.S. labor force participation rate in June 2025 was 62.3%. This rate marked a tiny decrease from the 62.4% seen in May 2025 and was based on the total number of people aged 16 and older who were either employed or actively looking for work

The BLS, which falls under the Department of Labor, measures labor market activity, working conditions, price changes, and productivity in the U.S. economy. The unemployment rate for any area is the number of area residents without a job and looking for work divided by the total number of area residents in the labor force.

In other words, the unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed). What the BLS unemployment rate will not tell you is how many people have taken themselves out of the workforce, perhaps becoming so discouraged in their job search that they have given up hope of finding a job.

Some economists say that the nation’s low unemployment could be due, in part, to a low labor participation rate.

Recommended: Breaking Barriers: New SoFi Data Reveals the Truth About Today’s Female Entrepreneurs

U.S. City Unemployment Rates: Lowest to Highest

To gauge the current state of unemployment across all 50 states, we’ve zeroed in on the cities with the largest population in each state, along with the District of Columbia. The data from June 2025 represents the most recently obtainable complete figures from the Bureau of Labor Statistics.

Below is our list of ranked cities, beginning with the city that had the lowest rate of unemployment and moving to the highest.

50. Sioux Falls, South Dakota

After it reached the distinction of ranking lowest on our list at 1.6% in July 2024, Sioux Falls has hung on to this position, and a year later it is at 1.8%. South Dakota has the lowest unemployment of all states in this month at 1.8% as well. “South Dakota traditionally has a lower unemployment rate than the rest of the country,” explained an economics professor in a recent paper. But the state’s low rates since 2023 create a “double-edged sword.” The super-tight labor market means economic growth can be difficult.

49. Portland, Maine

Portland’s unemployment rate has plummeted in the last six months, dropping to 2.2% in June. Maine overall is a new occupant of the bottom five set. Its seasonally adjusted unemployment rate was 3.3% in June 2025, slightly lower than in recent months. It has been below 4% for 43 months, the second longest such period and below the U.S. average for all but three months for more than 17 years.

48. Burlington, Vermont

The city of Burlington showed an unemployment rate of 2.3%, while the statewide unemployment rate was 2.6% in June. “There are nearly three job openings for every unemployed Vermonter,” according to the Vermont Department of Labor. Burlington is the industrial, tourist, and financial center of the state, with a population of 44,700. Burlington also has the distinction of being the least populous city in our list.

47. Huntsville, Alabama

The June 2025 jobless rate for Alabama of 3.2% continues the streak of low joblessness for the state. The unemployment rate of 2.6% for Huntsville makes it one of the country’s lowest for cities of its size. A metropolis of rapid growth, Huntsville has leading sectors in aerospace, defense, information technology, bioscience, and advanced manufacturing.

46. Fargo, North Dakota

Fargo, population 126,000, showed an unemployment rate of 2.8% in June 2025, while the state’s unemployment was 2.5%. One reason North Dakota has had such a low unemployment rate for years is because it is the fifth least-populated state in the United States. Fargo’s economy is based on education, the medical industry, agricultural equipment, and services.

45. Billings, Montana

The largest city in Montana showed an unemployment rate of 2.5%, down from 3.3% in the summer. Billings has a history of strength in agriculture and energy; more recently, it has focused on retail. In November. Montana’s unemployment rate reached its 41st consecutive month of unemployment at or below 3.4%.

44. Manchester, New Hampshire

The state of New Hampshire continued to show low unemployment at 3.1% in June. The jobless rate of Manchester, population 115,000, was also 3.1%. The very low jobless rate does create special challenges for employers, such as dealing with the size of the workforce, which is smaller in New Hampshire than it was before the Covid-19 pandemic.

43. Honolulu, Hawaii

With a population of 345,000, Honolulu had an unemployment rate of 3.1% in June. Job gains were seen in professional and business services, trade, transportation and utilities, and private education and health services. Overall, Hawaii had an unemployment rate of 2.8%, continuing its steady decrease in joblessness this year.

42. Oklahoma City, Oklahoma

The largest city in Oklahoma continued its successful plunge in unemployment with a rate of 3.2% in June. Oklahoma City has one of the world’s largest livestock markets, with oil, natural gas, and petroleum products as its largest sectors. As for the state, Oklahoma’s rate of 3.1% is part of a slow increase seen over the last six months.

41. Bridgeport, Connecticut

The unemployment rate in Bridgeport, population 148,000, came in at 3.2% in June, showing continual lower unemployment than registered a year ago. The state was at 3.8% in June. In a statement to the press, state Department of Labor Commissioner Danté Bartolomeo said, “We’re seeing sustainable job growth, a low unemployment rate, and a steady job market with opportunities for workers at all levels of their careers.”

40. Nashville, Tennessee

The city of Nashville saw its unemployment rate at 3.4%, while the state’s jobless rate was 3.5%. The city is famous for music and entertainment, but healthcare and manufacturing are leading sectors as well. The city, population 1.3 million, is one of the fastest growing in America.

39. Omaha, Nebraska

In June, Nebraska continued its low unemployment rate of 3%. Nebraska’s low jobless rate is believed to be due to the dominance of industries like manufacturing and agriculture, which are less volatile than the energy or hospitality sectors. Omaha, population 487,000, had a jobless rate of 3.4%

38. Boise, Idaho

With a population of 237,000, Boise had a jobless rate of 3.5% in June. The major economic drivers in the region include semiconductor and other computer product manufacturing, food product manufacturing, administrative and business support services, and construction. Statewide unemployment stood at 3.6%.

37. Indianapolis, Indiana

The city of Indianapolis showed a June unemployment rate of 3.5%, an increase from 3.2% in May. An economist said recently that there were 5 job seekers for every 10 open positions in the state. Central Indiana’s life sciences and healthcare sector generates nearly $84 billion in total economic output. The state of Indiana showed a jobless rate of 3.6%, a sizable drop over the last year.

36. Milwaukee, Wisconsin

The state of Wisconsin had a jobless rate of 3.2% in June. Its largest city, Milwaukee, had an unemployment rate of 3.6%. The three sectors that comprise most of Milwaukee’s workforce are service sectors, manufacturing, and retail trade.

35. Baltimore, Maryland

At 3.6%, Baltimore continued to rank low for unemployment for a large city, but it is no longer attracting national attention for its gains. Maryland’s state unemployment rate hit an all-time low in October 2023, at just 1.7%, marking the lowest state unemployment rate in the U.S., but it has risen since then. In June, the Maryland unemployment rate was 3.3%.

Recommended: Maryland Small Business Grants

34. Atlanta, Georgia

Georgia’s largest city with a population of 496,000, Atlanta had a jobless rate of 3.6% in June, compared with 3.3% in May. Georgia’s unemployment rate was 3.5%. The sectors with the most job gains included accommodation and food services, health care and social assistance, arts, entertainment, recreation, and management of companies and enterprises.

33. Minneapolis, Minnesota

Minneapolis’ unemployment rate of 3.7% in June was an increase from 3.1% in May. The Twin Cities’ industries are dominated by healthcare, finance, manufacturing, and technology. Minnesota’s unemployment rate was 3.3% in June. ”Employers added staff and more Minnesotans started looking for work,” said Minnesota Department of Employment and Economic Development Commissioner Matt Varilek in a press statement.

32. Salt Lake City, Utah

Salt Lake City had a jobless rate in June 2025 of 3.7%, increasing from 3.3% in May. Known as the “Crossroads of the West,” the city’s major industries are government, trade, transportation, utilities, and professional and business services. The state’s unemployment rate was 3.2%.

31. Cheyenne, Wyoming

With a jobless rate of 3.7%, Cheyenne’s economy is based on light manufacturing, agriculture, the military and government, tourism, and transportation. Cattle and sheep-raising continue to thrive throughout the region, too. The unemployment rate in Wyoming was 3.3% in June.

30. Des Moines, Iowa

The largest city in Iowa had a June 2025 jobless rate of 3.8%, not much changed from 3.6% in May. Iowa’s seasonally adjusted unemployment rate was 3.7% in June. The state is recognized for its leading position in the agricultural sector, particularly corn, soybean, pork, and egg production.

29. Charleston, South Carolina

The state’s unemployment rate was 4.1%. South Carolina’s unemployment rate marked a decrease from the previous month and a record high in total employment. The June jobless rate of 3.8% for Charleston, population 151,000, is an increase over 3.1% in May.

28. Little Rock, Arkansas

Arkansas’ largest city’s unemployment rate was 3.9% in June, an increase since 2.9% last November. Healthcare is a leading sector in Little Rock, followed by manufacturing and construction. The state had a jobless rate of 3.7% in June, with the largest expansions in employment in the sectors of private education and health services.

27. Virginia Beach, Virginia

Virginia Beach had a jobless rate of 4% in June, inching up from 3.8% in May. Real estate, defense, and tourism are major sectors of the city’s economy. Virginia’s seasonally adjusted unemployment rate in June was 3.5%, a rise of 0.1 percentage points from the previous month and 0.6 percentage points higher than the previous year.

Recommended: Small Business Loans in Virginia

26. Phoenix, Arizona

Phoenix, population 1.6 million, has seen its unemployment swing back and forth this year. It was 2.3% in April 2024, in June 2025 it stands at 4%. In the last 50 years, Phoenix’s economy has been powered by hospitality and leisure, but the city is also home to a growing number of high-tech, IT, renewable energy, and bioscience companies. Arizona had a 4.1% jobless rate in June.

Recommended: Small Business Grants in Arizona

25. Charlotte, North Carolina

With a population of 879,000, Charlotte is home to corporations such as MetLife, NASCAR, Wells Fargo, Bank of America, and Lowe’s. Its unemployment rate was 4% in June, compared to 3.6% in May. The state’s jobless rate was 3.7%, unchanged for the last several months..

24. Jackson, Mississippi

With a population of 149,000, Jackson had a jobless rate of 4.1% in June. Jackson also has a lower average cost of living than the average for the U.S. Its major job sectors are advanced manufacturing, health care, information technology, and food processing. The largest increase from May to June of all the states was in Mississippi, a rise of +1.1 percentage points to land at 4%.

23. Charleston, West Virginia

The city with the largest population in West Virginia has 46,700 people and had an unemployment rate of 4.1%, a sizable increase from 3.5% in May. As it is the state capital, Charleston has government jobs as well as those in trade, utilities, education, and medicine. The chemical industry and the manufacturing sector are also significant. The jobless rate in West Virginia was 3.7% in June.

22. Kansas City, Missouri

Missouri had a jobless rate of 4% in June 2025, and Kansas City, its largest city, had a rate of 4.2%. The unemployment rate in Missouri reached a record high of 11.4% in April of 2020 and a record low of 2.1 in May of 2022. Kansas City is the third largest beef-processing city in America and has strong sectors in health care, tech, retail, and finance.

21. Jacksonville, Florida

The largest city in Florida with a population of 954,000, Jacksonville had a jobless rate of 4.2% in June. Florida’s seasonally adjusted unemployment rate as of June, 2025, was 3.7%, which is 0.4% below the U.S. rate of 4.1%. Florida’s unemployment rate held steady in early to mid 2025, with only a slight increase since May 2024.

Recommended: Small Business Loans in Florida

20. Wichita, Kansas

The unemployment rate in Wichita, population 395,000, was 4.3% in June. Agriculture, manufacturing, healthcare, and energy drive the Wichita regional economy. There was a seasonally adjusted unemployment rate of 3.8% for the state of Kansas in June. This is unchanged from 3.8% in May and an increase from 3.6% in June 2024.

19. Seattle, Washington

Seattle, population 733,000, showed a 4.3% jobless rate comparing to 4.1% in May. Thousands of tech sector layoffs in the Seattle area have had an impact, but the city continues to support innovation. Washington state’s unemployment rate was 4.5% in June 2025, a figure that remained steady.

18. Louisville, Kentucky

With an unemployment rate of 4.3% in June, Louisville has been holding steady since last autumn. Louisville, with a population of 628,000, is known for shipping and cargo and, more recently, for major manufacturing and health care. Kentucky’s seasonally adjusted unemployment rate for June 2025 was 4.9%, down 0.1 percentage points from May 2025 and down 0.1 percentage points from June 2024.

17. Houston, Texas

The June unemployment rate for Houston, the fourth most populated city in America, was 4.3%, a little bit higher than the state of Texas’ rate of 4.1%, which was the same as the national rate of 4.1%. Despite a minor month-over-month decline in total non-farm jobs, the civilian labor force and the number of employed individuals both reached new record highs for the sixth consecutive month, according to the Texas Workforce Commission.

Recommended: Small Business Loans in Texas

16. Albuquerque, New Mexico

The largest city in New Mexico had a jobless rate of 4.4% in June, which is an increase over 3.8% in May. It’s still a long way down from its pandemic high of 10%. Albuquerque and the rest of the state are on a growth curve — the top three industries are oil drilling and gas extraction, scientific research and development, and hospitals. New Mexico’s jobless rate was 4.2%.

15. Denver, Colorado

Colorado’s jobless rate was 4.7% and Denver, its largest city, had a rate of 4.4%. Considered a magnet for work-from-home professionals, Denver is a fast-growing city, but one with housing costs that are 36% higher than the national average. Software and financial services are among its hottest industries. Aerospace, digital communications, and food and beverage sectors are also expanding.

Recommended: Small Business Grants in Colorado

14. Boston, Massachusetts

At 4.8%, Massachusetts showed comparatively high unemployment in June, but Boston’s unemployment rate was 4.5%. The city is the economic engine and cultural hub of New England, with higher education, health care, and financial services as the major drivers. In a recent survey of cities most attractive to recent college graduates when considering job openings and affordability, Boston came in at number 12, making it the top city in the Northeast.

13. Wilmington, Delaware

Located midway between Washington, D.C. and New York City, Wilmington is Delaware’s largest city and its economic engine. Wilmington had an unemployment rate of 4.6% in June 2025. The state itself was at 4% unemployment.

12. Providence, Rhode Island

With a population of 189,000, Providence had a jobless rate of 4.6% in June, which is a decrease in the jobless rate from 5.2% in July. The state’s unemployment rate was 4.6%. About one-third of the city’s economy is based in trade, transportation, utilities, and educational and health services. The four Fortune 500 companies based in Rhode Island are CVS Heath, United Natural Foods, Textron, and Citizens Financial Group.

11. New York, New York

The Big Apple had a jobless rate of 4.6% in June, which is a decrease from 5.6% in July 2024. This makes it one of the cities on our list with an unemployment rate higher than the national average. However, New York City, with its population topping 8.4 million, also shows gains in employment four years after the start of Covid-19 lockdowns. New York State is estimated to have lost about 2 million jobs in the immediate wake of the pandemic. The state has a jobless rate of 4%, which is also an improvement over a year ago.

Recommended: Small Business Grants in New York

10. Columbus, Ohio

Ohio’s unemployment rate was 4.9% in June 2025, unchanged from May 2025. Columbus, its largest city, clocked in at 4.7%. The number of workers unemployed in Ohio in June was 293,000, down from 294,000 in May 2025. The number of unemployed has increased by 41,000 in the past 12 months from 252,000.

9. Portland, Oregon

In June 2025, Oregon’s unemployment rate increased to 4.9%, the highest in four years, with a loss of 4,300 non-farm jobs. The job market contracted, particularly in sectors like manufacturing, leisure and hospitality, and other services, while education, health, and information sectors saw slight gains. Portland, its largest city, had a jobless rate of 4.7% in June, ticking up from 4.3% in May.

8. Anchorage, Alaska

Anchorage, the city with the largest population in Alaska, had a jobless rate of 4.8% in June, leaping from 4% in May. Alaska often shows a relatively high unemployment rate. Over the last 40 years, the average unemployment rate in the United States has been 6.3%, while in Alaska, it averaged 7.9% since 1976. Therefore, the November rate of 4.7%, while higher than the national average, is low for this state.

7. Chicago, Illinois

The June 2025 unemployment rate of 5% for the city is a decrease from 6% or higher a year ago. The city and its suburbs are home to 35 Fortune 500 companies, with strengths in manufacturing, printing, insurance, transportation, financial trading, and food processing. Illinois’s rate of 4.4% is also a full point lower than a year ago.

6. Philadelphia, Pennsylvania

The unemployment rate for Philadelphia stood at 5.1% in June, compared to 4.4% one year ago. The state of Pennsylvania ranked at 4% in June, just below the national average. Philadelphia’s comparatively low unemployment bolsters the region’s ongoing recovery from the pandemic, which hit Philly hard and led to the loss of more than 100,000 jobs in the first two months of Covid-19 alone.

5. New Orleans, Louisiana

The June 2025 jobless rate of 4.1% in the Big Easy compares to 4.6% one year ago. Unemployment has come a long way since its alarming Covid-19 days of 20% in April 2020 and an April 2021 rate of 9%. As a tourist favorite and a major port on the Gulf Coast, New Orleans is considered an economic and commercial hub, and Louisiana’s 4.5% unemployment rate is just above the national average.

4. Detroit, Michigan

The unemployment rate for Detroit of 5.3% in June 2025 is an improvement over last year, when it hit 6.3% in November. The city has gone through a rough economic ride, starting well before Covid-19: Detroit experienced a 61% decrease in population from 1950 to 2010, lowering its ranking from the 4th most populous city in America to the 27th. Detroit’s jobless rate was an eye-popping 27% in June 2009. The state of Michigan’s jobless rate was 5.3% in June.

3. Newark, New Jersey

In June, the city’s unemployment rate was 5.5% in June, compared to 5% in June 2024. However, this is still a marked decrease from a high of 9.7% in 2010. The city of Newark has a population of over 305,000, and some 25% of residents are living in poverty, according to U.S. Census data. The state’s jobless rate of 4.9% is well above the national average.

2. Las Vegas, Nevada

Las Vegas, the largest city in Nevada, had the second-highest unemployment rate on our list at 5.8% in June 2025, compared to 5.5% in May. Las Vegas shows a lot of turbulence in employment, with a high number of people in the workforce actively looking for jobs. Nevada’s rate was 5.4%, which is actually a slight decrease from the jobless rate over the last six months.

1. Los Angeles, California

The city on our list with the second-highest population in America (at 3.9 million) had an unemployment rate that is the highest of all the cities on this list at 5.9%, compared to 5.9% in June 2024. Both the city and the state of California have struggled since Covid-19. California’s unemployment rate for June 2025 was 5.4%, tied with Nevada for the highest in the United States. Key causes in California include layoffs in the tech sector, the slow recovery of the entertainment and tourism industries after strikes and the pandemic, and a structural issue where high costs make it hard for businesses to hire and for workers to afford living in the state.

Recommended: Small Business Loans in California

Notable Mention: Washington, D.C.

The nation’s capital of Washington, D.C., population 712,000, showed an unemployment rate of 6.1% in December, which is higher than any of the cities on our list. It was 5.7% one year ago.

What Factors Affect Unemployment Rate?

Unemployment is a key measure of the health of the American economy and considerable resources are put into analyzing it. There are many different reasons for unemployment. Apart from the common causes found in any economy — a worker leaving for another job or being fired — there is cyclical unemployment and structural unemployment.

Cyclical unemployment is caused by economic downturns or is related to changes in business conditions. As the name indicates, it can be temporary. After a recession ends, unemployment typically falls.

Structural unemployment is different. It usually means there is a mismatch between the jobs available and the skill levels of the unemployed. Technological changes, a lack of relevant skills, and jobs moving overseas cause structural unemployment.

Structural unemployment can be hard for a society to deal with — it produces permanent disruptions in the economy and obviously a lot of stress among the people who want to work but can’t get a job.

Recommended: How Does Unemployment Work?

How Does a Low Unemployment Rate Affect the Economy?

The problem of high unemployment seems far away indeed. A reasonable unemployment rate is somewhere between 3% and 5%. The current rate of unemployment means that the economy is producing near its full capacity, maximizing output, and driving wage growth.

However, the labor market can reach a point where each additional job added does not create enough productivity to cover its cost. This causes an output gap, or “slack,” in the labor market. The economy is in danger of becoming “overheated.”

Recommended: Success Secrets of Hispanic- and Latine-Owned Small Businesses

How Does Unemployment Affect Small Businesses?

An increasing demand for labor coupled with a falling unemployment rate can result in wage inflation. With fewer people available to work, employers have to increase wages to attract and hold onto talent. While that’s pleasant for the workers, some businesses can’t afford to pay a lot more. The money that might go to growing the business has to go toward payroll.

Also, when there are more jobs than there are people with the necessary skills and experience, employees may begin feeling overwhelmed and stressed. Small businesses typically have less money to funnel toward training and recruitment. This is a time when small businesses may turn to debt financing, whether it’s seeking a small business loan or looking for investors.

Recommended: 12 Ways to Boost Loan Eligibility for Your Business

The Takeaway

In June 2025, the unemployment rate stood at 4.1% and the number of unemployed people at 7 million. This reflected little change since May 2025. The unemployment rate has remained in a range of 4% to 4.2% since May 2024.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

With one simple search, see if you qualify and explore quotes for your business.

---

Photo Credit: iStock/glegorly

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOSMB-Q425-020