Summary
The U.S. unemployment rates varied across states in December, with some states seeing decreases and others increases. The national unemployment rate dropped slightly to 4.4% in December, but overall job growth in 2025 was the weakest since 2020. Government job layoffs were particularly high due to the dissolution of a federal department.
Key Facts
- In December, unemployment decreased in 8 states, increased in 21, and stayed the same in 22.
- The nationwide unemployment rate dipped to 4.4% in December.
- The economy added 50,000 jobs in December, below expectations of 60,000.
- Hawaii and South Dakota had the lowest unemployment rates at 2.2%.
- Washington, D.C. had the highest unemployment rate at 6.7%.
- Government job layoffs in 2025 were significant, with 308,167 job cuts.
- The dissolution of the Department of Government Efficiency largely caused the increase in government job layoffs.
