September unemployment rose in 25 states while falling in 21, according to a government report released Dec. 11, delayed by the recent federal shutdown.
Oregon saw the largest year-over-year increase, with its unemployment rate climbing from 4.2% to 5.2%. The District of Columbia followed, rising from 5.3% to 6.2%, and Delaware increased from 3.6% to 4.5%. The biggest declines occurred in Indiana, dropping from 4.4% to 3.7%, Illinois, down from 5.0% to 4.4%, and Kentucky, falling from 5.3% to 4.7%.
Nationally, unemployment rose to 4.4% from 4.1% in September 2024, with the number of people actively seeking work increasing from 6.9 million to 7.6 million. Payrolls added 119,000 jobs in September, rebounding after a loss of 4,000 jobs in August.
October’s national employment report will not be released due to data collection interruptions from the shutdown, while the November report is scheduled for Dec. 16. September’s state-level report was also delayed.
A separate estimate from payroll processor ADP indicated a net loss of 32,000 jobs in November, with small businesses of fewer than 50 employees losing 120,000 positions. Professional services, tech, and manufacturing sectors experienced the largest declines.
South Dakota reported the lowest unemployment rate at 2%, driven by labor shortages and rising hiring costs for state projects. The highest rate was in the District of Columbia at 6.2%, influenced by federal layoffs. Other high rates were seen in California (5.6%), Nevada (5.3%), New Jersey and Oregon (5.2%), and Michigan (5.1%).
The 43-day federal shutdown, which ended Nov. 12, delayed the release of these state-by-state figures.