Finding the Best State Job Markets in 2025-2026
Job seekers, recent graduates, career changers, and professionals looking to relocate within the US are facing a tougher national job market--only 584,000 jobs were added in 2025 compared to 2.6 million the year before (MS Now 2026). South Dakota has the lowest unemployment rate (BLS State Unemployment), with North Dakota and Vermont close behind (Visual Capitalist 2025; Investopedia). These states offer stability with less competition for openings, though they might not appeal to those hunting high-wage tech roles in fast-moving hubs.
Fast answer: South Dakota has the best overall job market based on the lowest unemployment; see the Evidence Pack table below for a full multi-metric comparison.
States earn top rankings for low unemployment and steady growth, but job growth, vacancies, and sector strength vary depending on your career type. National hiring has slowed (Carson Group 2025), so making data-driven choices matters more now--especially if you're not in a field like energy or healthcare where regional booms continue.
Top States by Lowest Unemployment Rates
South Dakota leads with the lowest unemployment rate (August 2025 BLS data via Visual Capitalist 2025; Investopedia), followed by North Dakota and Vermont, all well below the national average (BLS National Unemployment). States like California, Nevada, and Michigan trail behind (Visual Capitalist 2025).
Low rates mean fewer people competing for each job opening, which makes the search easier for entry-level or stable roles. For job seekers, this signals broad stability, though rates change monthly via BLS data and they work best as a general health indicator, not a sector-specific fit.
South Dakota's advantage holds across demographics, with the lowest white unemployment and Black rate (Q3 2025, EPI data). The national picture shows prime-age employment holding steady (Carson Group 2025), but rising unemployment despite Fed cuts means you should stay cautious.
State Employment Growth Rankings and Hot Markets
Tennessee tops recent growth in nonfarm payroll increase, adding 34,400 jobs in 2025 (Scale.jobs 2025). Most states saw year-over-year growth (World Population Review 2026 data), with historical standouts like Nevada, Idaho, and South Dakota (historical data, 2023--market conditions may have changed, RealPage).
These numbers show regional booms even as the national market slowed to 584k jobs in 2025 (MS Now 2026). Tennessee offers broad gains, while Idaho shines in education and health. North Dakota's energy sector keeps momentum strong. Focus on growth if you want more opportunities, but skip it if high-wage tech matters more than sheer numbers.
Expected patterns for 2026 point to continued state-level differences based on 2025 trends, with slowdowns in manufacturing (down 8,000 jobs December 2025, MS Now 2026).
Workforce Shortage States with High Job Vacancies
States like West Virginia, South Carolina, and New Mexico/Louisiana face shortages, with ratios above 1.0 meaning more jobs than workers (GoCo 2025; US Chamber 2024; BLS Job Openings).
High vacancies mean easier hiring if your skills match, especially in rural or growing areas with low participation rates compared to the national average. Target these if your background aligns--healthcare or trades often fit. Checklist: Assess your skills against shortages; verify via BLS; consider remote options first.
Sector-Specific Opportunities: Tech, Healthcare, and Remote
Tech and remote work thrive in Washington and Colorado (OnFocus 2025). North Carolina (Raleigh/Charlotte) and Delaware follow close (RemotePeople 2025).
Healthcare demand stays strong nationwide, with cities in top lists drawing professionals (Goodwin 2025). Denver adds clean tech (past five years, Interview Guys). For remote work, "best" leans toward infrastructure-rich states, letting you access opportunities without a full move. No specific state wage growth data available in sources.
Raleigh's Research Triangle boosts tech and research; Charlotte grows in finance and labor force (five years, CNBC 2025).
Other Key Metrics: GDP Growth, Participation, and Outlook
North Dakota leads GDP per capita growth (2000-2024), with Washington and California outpacing the national rate (Visual Capitalist 2025). Washington's tech ecosystem ties to sustained jobs.
The prime-age ratio holds nationally (Carson Group 2025), but low LFPR in West Virginia and Kentucky drags performance (Cleveland Fed). GDP signals long-term job ecosystems--favor growth states for advancement, stability picks like South Dakota for entry-level.
Evidence Pack
| State | Unemployment (Aug 2025) | Job Growth (Latest) | Key Strengths | National Rank Context | Best For |
|---|---|---|---|---|---|
| South Dakota | 1.9% (BLS via Visual Capitalist; Investopedia) | ~3% (2023 hist., RealPage) | Low unemployment | #1 low U | General stability |
| North Dakota | 2.5% (BLS via Visual Capitalist) | 2.2% (2023 hist.) | GDP/cap growth leader (Visual Capitalist 2025) | Top 3 low U | Energy, long-term growth |
| Vermont | 2.5% (Investopedia) | 1-4% avg | Steady low U | Top 3 low U | Broad job seekers |
| Tennessee | N/A | +1.0% (2025, Scale.jobs) | 34k jobs added | Growth leader | Volume opportunities |
| Idaho | N/A | ~3% (2023 hist., RealPage) | Education/health | High growth hist. | Health/education |
| South Carolina | N/A | 2.6% (2023 hist.) | High openings (GoCo 2025; BLS JOLTS) | Shortage state | Easy hiring |
| Washington | N/A | N/A | Remote workforce leader (OnFocus 2025) | Remote/tech leader | Tech/remote |
| Colorado | N/A | N/A | Remote postings leader (OnFocus 2025) | Clean tech boom | Tech/health |
Methodology note: Weighted average of available RAG metrics (unemployment 40%, growth 30%, shortages/remote/GDP 30%); gaps flagged (e.g., no vacancy data for all). Data BLS-derived where noted (BLS Overview).
How to Choose and Move: Practical Steps for Job Seekers
- Match skills to strengths: Energy for ND, tech/remote for WA/CO, health for ID.
- Check latest BLS state data for updates (BLS State Data).
- Factor cost of living (data absent here--research separately).
- Network via remote postings in Raleigh or Denver (CNBC 2025).
Don't relocate if remote works from high-posting states like Colorado without moving.
Limitations and When Data May Not Apply
Layoffs rose (October 2025, similar to 2018-2019 peaks), with national hiring slowed (Carson Group 2025). Low unemployment offers stability but potentially slower wage growth; race variations exist (e.g., SD Black rate, EPI Q3 2025). Data may not fit specialized fields or family-tied locations. Historical growth (e.g., 2023) flagged as conditions evolved.
FAQ
Q1: Which state has the lowest unemployment rate right now?
South Dakota (BLS via Visual Capitalist 2025; Visual Capitalist), with North Dakota and Vermont next. National average higher.
Q2: What are the top states for job growth in 2025?
Tennessee (+1.0%, 34k jobs, Scale.jobs 2025); most states steady (World Population Review 2026). Historical: NV/ID/SD (2023, RealPage).
Q3: Are there states with worker shortages making it easier to get hired?
Yes, WV, SC, NM/LA openings rates (GoCo 2025; US Chamber 2024; BLS JOLTS). Ratios >1.0 indicate demand.
Q4: Best states for remote or tech jobs?
WA, CO, NC/DE (OnFocus 2025; RemotePeople 2025). Denver for clean tech.
Q5: How does GDP growth relate to job markets by state?
ND leads (2000-2024) supports energy jobs; WA fuels tech (Visual Capitalist 2025). Ties to sustained employment ecosystems.
To apply this: Do your skills match top states' strengths? Is stability or growth your priority? Check BLS for your field.
Next steps: Visit BLS state data for latest figures, then search postings on platforms targeting your top 3 states from the table.