A fast food restaurant stands empty in a Manhattan neighborhood, Feb. 5, 2021, in New York City. (Spencer Platt/Getty Images)

Every State Saw Unemployment Increase in 2020

Hawaii and Nevada saw the largest increases in unemployment, while Nebraska and South Dakota fared best.

Every state and the District of Columbia saw their unemployment rates rise in 2020 amid the coronavirus outbreak, with the greatest increases in Hawaii and Nevada, the Bureau of Labor Statistics reported on Wednesday.

Both western states suffered heavily from their dependence on tourism and hospitality, with Hawaii posting a 9.1 percentage point rise and Nevada close behind with an 8.9 point jump. Another seven states saw increases of at least 5 percentage points.

In contrast, Nebraska and South Dakota saw the smallest increases of 1.2 percentage points and 1.6 points, respectively.

The damage from the near-national lockdown, including closures of restaurants, schools and businesses, saw four states reporting jobless rates of 10% or more last year: Nevada, at 12.8%; Hawaii, 11.6%; California, 10.1%; and New York, 10%. Nebraska and South Dakota had the lowest jobless rates, 4.2% and 4.6%, respectively.

Overall, 22 states had unemployment rates lower than the national rate of 8.1%, while eight states had higher rates. The District of Columbia and 20 states saw unemployment rates similar to the nation as a whole.

The BLS report highlights the dramatic effect the pandemic has had on the labor market. Even though the economy overall, as measured by gross domestic product, has recovered and is expected to reach its pre-pandemic level this year, analysts say it will take much longer to bring employment levels back to where they were before the coronavirus was first declared a global health crisis nearly a year ago. The national unemployment rate was at a record low of 3.5% in February 2020 before rising to 14.8% two months later.

Even as the national rate has now dropped to 6.3%, many economists think that number understates the true nature of joblessness when people who have dropped out of the labor market or are otherwise not counted in official tallies are taken into account.

In general, states have seen rebounds from conditions that existed last spring and have performed better than some of the dire predictions made at the beginning of the pandemic. More than $3 trillion in relief has flowed from Washington and more is likely on the way as Congress enters final debate on a $1.9 trillion package that includes relief for states and localities. But many states have seen their unemployment trust funds shrivel and spending plans have been cut back.

Here are the 10 states with the highest and lowest unemployment rates for 2020:

Highest 2019 Rate 2020 Rate Difference
Nevada 3.9 12.8 8.9
Hawaii 2.5 11.6 9.1
California 4.2 10.1 5.9
New York 3.8 10 6.2
Michigan 4.1 9.9 5.8
New Jersey 3.4 9.8 6.4
Illinois 4 9.5 5.5
Rhode Island 3.6 9.4 5.8
Pennsylvania 4.5 9.1 4.6
Massachusetts 3 8.9 5.9
Lowest 2019 Rate 2020 Rate Difference
Nebraska 3 4.2 1.2
South Dakota 3 4.6 1.6
Utah 2.5 4.7 2.2
North Dakota 2.3 5.1 2.8
Iowa 2.8 5.3 2.5
(TIE) Idaho 2.8 5.4 2.6
(TIE) Maine 2.7 5.4 2.7
Vermont 2.3 5.6 3.3
Wyoming 3.7 5.8 2.1
(TIE) Alabama 3 5.9 2.9
(TIE) Kansas 3.2 5.9 2.7
(TIE) Montana 3.6 5.9 2.3

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