Annual average unemployment rates declined from 2004 to 2005 in nearly four-fifths of the states and all four regions, while employment-population ratios rose in over two-thirds of the states and in all four regions, the Bureau of Labor Statistics of the U.S. Department of Labor reported Wednesday. The U.S. jobless rate dropped by 0.4 percentage point to 5.1 percent in 2005, while the national employment-population ratio increased by 0.4 point to 62.7 percent.
Regional unemployment
Among the four regions, the Northeast and South reported the lowest
jobless rates in 2005, 4.8 and 5.0 percent, respectively. The unemployment rate in the West was 5.2 percent in 2005, while the rate in the Midwest, 5.4 percent, was the highest among the regions for the first time in 20 years. The range between the highest and lowest regional unemployment rates (0.6 percentage point) did not change over the year; the only year the range was smaller was 1990. The West registered the largest unemployment rate decrease from 2004 to 2005 (-0.7 percentage point), followed by the Northeast (-0.5 point).
Eight of the nine geographic divisions posted over-the-year unemployment rate declines. The largest decreases were reported in the Pacific (-0.9 percentage point), Middle Atlantic (-0.6 point), and Mountain (-0.5 point) divisions. The East South Central was the only division with the same rate as in 2004. The divisions with the lowest jobless rates in 2005 were the South Atlantic, 4.5 percent, Mountain and West North Central, 4.6 percent each, and New England, 4.7 percent. The divisions recording the highest unemployment rates were the East North Central and East South Central, at 5.8 and 5.6 percent, respectively.
State unemployment
Annual average unemployment rates decreased from 2004 to 2005 in 39
states and the District of Columbia, rose in 9 states, and were unchanged in two states. The largest rate declines occurred in Alabama and Oregon (-1.2 percentage points each) and Florida and Idaho (-0.9 point each). Fifteen additional states reported over-the-year rate decreases of at least one-half percentage point. The District of Columbia's jobless rate decreased by 1.0 percentage point. The largest unemployment rate increases for 2005 were recorded by the two states most affected by Hurricane Katrina: Mississippi (+1.6 percentage points) and Louisiana (+1.4 points). The next largest rate increases were registered in Kentucky (+0.6 percentage point) and Georgia
(+0.5 point).
Hawaii again had the lowest unemployment rate among the states, 2.8 percent. North Dakota posted the next lowest rate, 3.4 percent, followed closely by Vermont and Virginia, 3.5 percent each, and New Hampshire and Wyoming, 3.6 percent each. Four additional states (Florida, Idaho, Nebraska and South Dakota) reported annual average unemployment rates below 4.0 percent.
Mississippi and Louisiana recorded the highest jobless rates in 2005, 7.9 and 7.1 percent, respectively. Three other states had rates above 6.5 percent - Alaska and South Carolina, 6.8 percent each, and Michigan, 6.7 percent. The District of Columbia's rate was 6.5 percent.
Overall, 31 states reported unemployment rates below the national
average of 5.1 percent, 18 states and the District of Columbia registered rates above it, and one state had the same rate. All nine states in the Middle Atlantic and New England divisions, seven of the eight states in the Mountain, and six of the seven states in the West North Central posted rates equal to or below that of the U.S. In contrast, four of the five East North Central states, four of the five Pacific states, and three of the four East South Central states recorded rates above that of the nation.
Regional employment-population ratios
In 2005, all four regions registered over-the-year increases in their
employment-population ratios - the proportion of the civilian noninstitu-
tional population 16 years of age and over that was employed. The Northeast and West posted the largest increases (+0.5 percentage point each). Relative to the 62.7-percent employment-population ratio for the U.S., the Midwest (64.5 percent) and West (63.1 percent) reported higher ratios, while the South (61.7 percent) and Northeast (61.9 percent) had lower ratios.
Of the nine geographic divisions, the Middle Atlantic and Pacific recorded the largest increases in their employment-population ratios (+0.7 percentage point each). The East South Central division registered the largest decline from 2004 (-0.4 percentage point). The West North Central again reported the highest proportion of employed persons (67.8 percent), while the East South Central continued to have the lowest proportion (58.5 percent).
State employment-population ratios
In 2005, 35 states and the District of Columbia posted increases in
their proportions of employed persons from 2004, 12 states reported
declines, and 3 states had no change. The largest state employment-
population ratio increases occurred in Arkansas (+1.9 percentage points), Rhode Island (+1.2 points), Idaho (+1.1 points), and Hawaii (+1.0 point).
Twelve additional states recorded increases of at least one-half percentage point. The District of Columbia had an increase of 1.5 percentage points. Mississippi registered the largest decrease in its employment-population ratio in 2005 (-1.1 percentage points). Three other states had declines of at least 0.5 percentage point in 2005 -Tennessee (-0.8 percentage point), Nebraska (-0.6 point), and Wisconsin (-0.5 point).
Minnesota continued to record the highest proportion of employed persons in 2005, 71.0 percent, followed by two other West North Central states - Nebraska and South Dakota, at 70.6 and 70.1 percent, respectively. West Virginia again had the lowest employment-population ratio among all states, 52.3 percent. Mississippi had the next lowest ratio, 56.6 percent. Seven of the eight states with employment-population ratios below 60.0 percent were located in the South.
Thirty-one states and the District of Columbia recorded employment-population ratios higher than the U.S. figure of 62.7 percent, while 18 states registered lower ratios. One state had a ratio equal to that of the U.S. All states in New England and the West North Central again reported employment-population ratios above the U.S. average,
while all states in the East South Central division again had ratios below
it.
