California has returned to the top of the national unemployment rankings for the first time in nearly four years.
California’s 5.4% rate for June tied Nevada with the No. 1 jobless rate among the 50 states, according to my trusty spreadsheet’s review of unemployment data back to 1976.
Michigan was the third-highest at 5.3%, followed by Kentucky, New Jersey, Ohio and Oregon at 4.9%. The month’s lowest rates were in South Dakota at 1.8%, North Dakota at 2.5%, and Vermont at 2.6%.
And California’s economic rivals? Texas was No. 18 at 4%. Florida was No. 26 at 3.7%.
Plus, let’s not forget Tennessee – No. 33 at 3.5%. The state recently became newsworthy after In-N-Out’s owner Lynsi Snyder said — while tossing a few digs at the Golden State — that she’s relocating her family to the Volunteer State.
High history
California has a lengthy history of high unemployment.
And what does that say about California’s economy?
Consider that California tied Mississippi for the fourth-highest average jobless rate since 1976 at 7.1%. Only West Virginia at 7.7%, Michigan at 7.6% and Alaska at 7.5% were higher.
Contrast that group to the five states where unemployment ran lowest: Nebraska at 3.4%, South Dakota at 3.5%, North Dakota at 3.7%, New Hampshire at 4.1%, and Vermont at 4.4%.
And note that Texas was No. 27 at 5.9%, Florida, No. 28, at 6% and Tennessee, No. 30, at 6.1%.
Let’s compare employment opportunities created over half a century between the top and bottom of the jobless totem pole.
The five high-unemployment states added 11.5 million workers, or an 80% growth.
Now, most of that expanded staffing comes from California. Its bosses added 9.9 million workers in 50 years – No. 2 among the states – or 108% growth, 14th best among the states.
That seems like impressive growth.
Contrast that to the five low-unemployment states that combined added only 1.2 million jobs. That equals just 66% growth.
California’s creation of employment opportunities was on par with its three peers – all with average joblessness in the bottom half of the rankings.
Texas added 9.92 million jobs in the past half century, No. 1 among the states. That’s 181% growth, fifth fastest.
No. 3 Florida added 7.5 million, up 230% and fourth-fastest. No. 12 Tennessee grew by 1.6 million jobs, up 90% and 19th-fastest.
I’m not going to say that high unemployment is good, but employers appreciate the extra flexibility it provides for hiring.
California’s economy is also filled with volatile industries such as technology, real estate and tourism. That adds to employment gyrations.
Lofty rankings
Still, California is no stranger to the upper levels of unemployment rankings.
June 2025 was the 19th time the state ranked No. 1 in the 594 months dating to January 1976. That’s the eighth-highest count of top-ranked joblessness among the 50 states.
West Virginia – from the days of coal mining’s demise – has the most No. 1s at 158. Next are Alaska and Nevada at 112. Both have mercurial economies tied to energy and tourism, respectively.
Michigan, riding automaking’s vicious cycles, is No. 4 at 89. And Louisiana, spun by energy and wild weather, was No. 5 at 38.
Consider that over the past half century, 37 states have never had the highest unemployment rates. That includes Texas, Florida, and Tennessee.
Or focus on how often California has been in the top 5 for joblessness: 288 of the 594 months since 1976.
That’s 48% of the time, ranking third-highest among the 50 states. Only Alaska, at 65% and West Virginia, at 54% were there more frequently.
Texas ranked No. 29 at 1%, while Florida ranked No. 26. at 3% and Tennessee, No. 31 at 1%.
And 16 states never saw the top 5.
Best score
If you’re yearning for some “good ol’ days” when California had low unemployment on a national scale, think again.
The state’s best unemployment ranking was No. 22 in August 1987.
Over the past half century, the average month saw California ranked ninth-worst.
That’s tied Michigan for second-highest. Only Alaska, averaging a No. 7 ranking, was worse.
Look, California businesses are simply different. It’s a hub for innovation because bosses are entrepreneurial – and nimble.
Those traits make the state a global economic powerhouse. And a hotbed for unemployment.
PS: See all rankings at bit.ly/unemployment50
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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