As of June 2025, the U.S. national unemployment rate was approximately 4.1%, but state rates vary widely. Visual Capitalist+1
The lowest unemployment rates are in states like South Dakota (~1.8–1.9%), while Washington, D.C. has among the highest (~5.9%) for the same period. Many states are clustered near the national average, with some slightly above or below. Bureau of Labor Statistics+1
Over the year, unemployment rose in many states; only a handful saw declines. Bureau of Labor Statistics+1
Implications for government contracting / federal agencies:
- States with higher unemployment may offer a larger available labor pool but may also see more demand for federal social services or job training contracts. Contractors could find more competitive labor costs in high-unemployment states.
- Federal grant programs that aim to reduce unemployment or provide reemployment services may be directed to states with above-average unemployment.
- Agencies should adjust workforce availability expectations when awarding contracts; labor shortages or higher turnover might be more acute in low-unemployment states.
- Contracting for infrastructure, public works, or stimulus programs may be more politically and economically necessary in regions with elevated unemployment, creating opportunity.
Read more: https://www.visualcapitalist.com/unemployment-rate-by-state-2025/