Fresh government data reveal where finding work is easiest—and where it’s getting tougher, offering a snapshot of state job markets as the national hiring engine cools.
To keep this ranking transparent and timely, we rely on the Bureau of Labor Statistics’ state unemployment rates for August 2025, the latest month with a full, comparable ranking across states. Unemployment isn’t the only gauge of job hunting conditions, but it’s the cleanest single metric available monthly at the state level. We also note national trends in job openings to frame what job seekers are experiencing on the ground.
The lowest unemployment rates in August 2025 point to the friendliest markets for job seekers: South Dakota (1.9%), North Dakota (2.5%), Vermont (2.5%), Hawaii (2.7%), Alabama (2.9%), Montana (2.9%), Nebraska (3.0%), New Hampshire (3.0%), Oklahoma (3.1%), and Wisconsin (3.1%). South Dakota’s jobless rate is 1.9%. Many of these states share a pattern of tight labor supply and smaller, stable industries where employers still report difficulty filling roles.
Excluding the District of Columbia (6.0%, not a state), the highest unemployment rates signal tougher job hunts: California (5.5%), Nevada (5.3%), Michigan (5.2%), New Jersey (5.0%), Ohio (5.0%), Oregon (5.0%), Massachusetts (4.8%), Alaska (4.7%), Kentucky (4.7%), and Rhode Island (4.6%). California has the highest state jobless rate at 5.5%. The mix here includes tech- and entertainment-heavy economies still digesting prior layoffs, along with states facing industry-specific slowdowns.
Nationally, the job market has cooled from its post-pandemic sprint. Job openings now roughly match—or slightly trail—the number of people looking for work. In August 2025, the openings-to-unemployed ratio slipped below 1.0, underscoring a more competitive landscape. Job openings now trail the number of unemployed. That shift doesn’t erase opportunities, but it means fewer quick offers and more emphasis on skills fit.
State-level nuances still matter. Regions with low unemployment typically offer faster interview pipelines and more leverage on pay or start dates. In higher-unemployment states, candidates may benefit from broadening role types, targeting growing sub-sectors, or considering hybrid and remote roles tied to out-of-state employers. Rankings can also change month to month as industries rehire, seasonal work ramps, or companies finalize budgets.
Methodology note: We rank “best” and “worst” by seasonally adjusted unemployment rates for August 2025. Other indicators—like job openings rates and quits—support the broader narrative but are not used to order states here.