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The national unemployment rate has been below 4% since December 2021 and is now at 3.4%, down 0.5% from a year ago. But to get an accurate picture of the job market in your area, you’ll need to look at local data. This is because the unemployment rate in some cities and counties can be higher or lower than the national unemployment rate.
For example, El Centro, California had the highest unemployment rate in November (16.7%), while Fargo, North Dakota had just 1.5%.
U.S. Cities Unemployment Rate
Cities with the highest unemployment rates
The cities with the highest unemployment rate in November were El Centro, Calif., at 16.7%, followed by Yuma, Arizona, at 16.3%. The metropolitan area of Visalia, California lags far behind the number one metropolitan area with an unemployment rate of his 8.5%.
Cities with the lowest unemployment rates
Cities with the strongest job markets include Fargo, North Dakota, with an unemployment rate of 1.5%, Mankato, Minnesota (1.6%), and Rochester, Minnesota (1.6%).
Various measures of unemployment
Unemployment data can provide more insight into the economy than knowing how many people are out of work. For example, using data from the Bureau of Labor Statistics (BLS), estimates of people who have temporary or part-time jobs, who are considered demotivated, or who are struggling to find work can be obtained.
methodology
The Bureau of Labor Statistics uses the Local Unemployment Statistics Estimation Method (LAUS) to calculate unemployment rates by city. This method combines data points from different sources, such as the Current Population Survey (CPS) and Current Employment Statistics (CES).
LAUS provides four measurements for each geographic area, such as county, multi-county area, and city. These are Private Labor, Employed, Unemployed, and Unemployment Rate.
What is the unemployment rate?
The unemployment rate is an estimate of the unemployed aged 16 and over looking for work.
After not seeking work for four weeks, those people are no longer considered unemployed.
Why the Unemployment Rate Matters
The unemployment rate is one of the leading indicators of economic health. Through unemployment data, we can gather information about the economy as a whole and predict what is to come, including potential recessions and changes in inflation.
Unemployment affects household income, which in turn affects spending patterns that are vital to the economy.
Factors Affecting Unemployment Rate
The unemployment rate is influenced by the following factors:
- Number of people working or not working
- workforce participation
- Economic power in the labor market, including inflation and supply and demand
- Innovation
- Personal circumstances such as job accessibility, education and training
Unemployment rate and labor force participation rate
Both the unemployment rate and the labor force participation rate measure the labor force over the age of 16, but the unemployment rate covers people who are unemployed but are actively looking for work, while the latter measures those who are working. to measure .
Frequently Asked Questions (FAQ)
Who doesn’t count in the unemployment rate?
People who don’t count toward the unemployment rate are people under the age of 16 and people who are unemployed and haven’t been looking for work in the last four weeks.
What is the natural rate of unemployment?
The natural rate of unemployment is caused by all labor force activities that are part of a healthy economy, such as moderate inflation, people changing jobs, and corporate mergers.
What is a good unemployment rate?
A reasonable unemployment rate is between 4% and 5%. When unemployment is low, workers typically get paid more and spend more. This is good for the economy.
