Mapping the state(s) of labor in America

With September around the corner, Labor Day is nearly here, bringing with it the characteristic mix of emotions that the unofficial end of summer always brings. This year, many Americans seem set on spending the long weekend away from home, with Labor Day travel set to break records and airports bracing for unprecedented crowds as the AAA predicts a 9% surge in domestic travel.

Established as a national holiday by President Cleveland in 1894, Labor Day was created to honor American workers. But how is the US labor force getting on? Despite the national unemployment rate sitting close to an all-time low at 4.3%, that figure obscures the significant variation at the state level.

The states with the lowest rates are found in the north, with the Dakotas recording extremely low levels at around 2%. Vermont also ranks well (2.1%), as does New Hampshire (2.5%) and Nebraska (2.6%).

At the other end of the spectrum, the District of Columbia has the highest share of job seekers at 5.5%, more than Illinois (5.2%) and Nevada (5.4%) — home to Las Vegas, the city that was hit hardest by the pandemic, where jobless rates hit a staggering 34% in 2020. California, the country’s largest state by economic output, also has much higher than average unemployment, at 5.2%.

Of course, unemployment is only one part of the economic picture. Wages are another (toggle the map above to change), and one that’s arguably more pertinent for consumers after years of inflation. On this measure, it’s more bad news for residents of Illinois. After ranking joint 48th on unemployment, the state comes last on wage growth, notching up pay gains of 2.7%, which isn’t enough to keep up with inflation. Ironically, neighboring workers in Indiana fared best, with pay increases averaging 5.7%.