According to the U.S. Bureau of Labor Statistics (BLS), the national unemployment rate remained at 4.2% in September 2026. Unemployment declined in five states and remained broadly unchanged in 45 states and the District of Columbia. South Dakota recorded the lowest rate at 2.0%, while the District of Columbia had the highest at 5.6%.
Nonfarm payroll employment increased in New Jersey by 14,900 jobs and South Carolina by 12,500, while Wisconsin lost 13,700 jobs. Over the year, Texas recorded the largest employment gain, adding 154,300 jobs, followed by California with 129,300 and North Carolina with 67,000.
State labor markets showed limited month-to-month change, although employment and unemployment trends varied across the country. Twenty states and the District of Columbia recorded lower unemployment rates than a year earlier, while seven states experienced increases. South Carolina led annual percentage job growth at 2.3%, while the District of Columbia recorded the only significant annual employment decline, losing 25,800 jobs.
