Unemployment rises in nearly a third of US states in December: Report

A recent report released on Tuesday by the Bureau of Labour Statistics revealed that unemployment rates increased in 15 US states in December, with Massachusetts and Rhode Island experiencing the most significant month-over-month rise at 0.3 percentage points.

On the positive side, Minnesota was the sole state to witness a decrease in unemployment, with its rate falling by 0.2 percentage points. Meanwhile, the majority of states and the District of Columbia saw unchanged unemployment rates. Nonfarm payroll employment levels remained essentially stable across all states from November to December.

From a year earlier, employment rose in 30 states, while it remained essentially unchanged in 20 states and the District of Columbia. Maryland and North Dakota boasted the lowest jobless rates at 1.9 per cent, highlighting regional variations in economic conditions. In contrast, Nevada reported the highest unemployment rate, holding steady at 5.4 per cent from November. The national unemployment rate remained unchanged at 3.7 per cent in December, and the economy added 216,000 jobs, up from the 173,000 added in November.

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The data also indicates that thirteen states and the District of Columbia have unemployment rates at or above 4 per cent, the highest count since December 2022. Notably, this includes three crucial battleground states for the upcoming presidential election: Michigan, Nevada, and Arizona. Nationally, the jobless rate remains near its lowest levels since the 1960s, with job participation and wage growth becoming key talking points in President Joe Biden's bid for re-election against former President Donald Trump.

President Biden's success in swing states like Michigan, where he led against Trump by 4 percentage points for the week ending Jan. 10, according to data compiled by polling analysis site 538, becomes crucial. Last year, Biden showed support for workers in Michigan by joining United Auto Workers members on the picket line during their walkouts against Ford, General Motors, and Stellantis. This marked the first time a sitting president participated in such an action, responding to pressure from Michigan Democrats.

(With inputs from Reuters)