These 13 States Have Less Than 3% Unemployment

More of us are working, and that's good for both morale and the economy.

Nationally, the unemployment rate is hovering right around 3.4%, lower than it's been in 50 years. If you're looking for a job, it probably doesn't feel like it right now, but it is good news. It means that employers are actively seeking new employees and that ultimately, employees have more say in where they're going to work.

What's amazing is that 13 states currently have an unemployment rate under 3%. Here, we take a look at who's leading the pack and break down why that particular state is doing so well.

1. Utah: 2.2%

The top three employment sectors in the Beehive State are:

• Manufacturing
• Real estate and rental, and leasing
• Professional, scientific, and technical services

According to the Salt Lake Tribune, one explanation for such a low unemployment rate has to do with people needing more money in their bank account. Many who once worked in tourism and hospitality are now taking jobs in higher paying sectors. This leaves more openings for those who want to go into tourism and hospitality.

2. (tied) North Dakota: 2.3%

The top three sectors by total employment in North Dakota are:

• Mining
• Agriculture, forestry, fishing, and hunting
• Rental and leasing

One reason the state may have such a low unemployment rate is because North Dakota is the fifth least-populated state in the U.S., with fewer people competing for jobs.

2. (tied) South Dakota: 2.3%

Here's where the majority of jobs are in South Dakota, based on total employment:

• Finance and insurance
• Agriculture, forestry, fishing, and hunting
• Healthcare and social assistance

While South Dakota has a larger population than North Dakota, it's still the sixth least-populated state in the country.

4. (tied) Florida: 2.5%

The top three job sectors in Florida will come as little surprise:

• Tourism
• Agriculture
• Aviation and aerospace

As long as Florida has 8,400 miles of coastline with Walt Disney in the center, Florida businesses are likely to be hiring.

4. (tied) Minnesota: 2.5%

The top three employment sectors in the Land of 10,000 Lakes are:

• Agriculture
• Manufacturing
• Mining

The Star Tribune reports that low rates are shaped by strong hiring since the pandemic has become less acute. When everyone did get back to work, the state's workforce had approximately 90,000 fewer employees than pre-pandemic.

6. (tied) Nebraska: 2.6%

Nebraska's unemployment rate has actually risen a bit since last year, but it's still a cool 2.6%. The top three job sectors are:

• Manufacturing
• Finance and insurance
• Agriculture, forestry, fishing, and hunting

Nebraska has been dealing with a chronic worker shortage since before the pandemic hit. Lower unemployment rates are due, in part, to relatively few people to fill each job.

6. (tied) Vermont: 2.6%

Vermont is known for its skiing and scenic walking trails, which makes the top job sector no surprise:

• Tourism
• Manufacturing
• Agriculture

As the second least-populous state, Vermont's unemployment rate benefits from too few people and too many job openings.

8. New Hampshire: 2.7%

Also in the top 13 is the Granite State and its three leading job sectors:

• Property, casualty, and direct insurance
• New car dealers
• Public schools

Governor Chris Sununu believes his state's unemployment rate is so low as a result of providing businesses with the flexibility they need to grow and providing people with the incentives and flexibility they need to work.

9. (tied) Alabama: 2.8%

The greatest number of jobs in Alabama can be found in these three sectors:

• Manufacturing
• Real estate, rental, and leasing
• Healthcare and social services

Alabama Governor Kay Ivey also believes that rising wages are one reason unemployment rates are low in her state. Since 2019, average weekly wages have risen by 20%.

9. (tied) Missouri: 2.8%

The largest employers in the Show Me State are:

• Agriculture and forestry
• Aerospace and defense
• Manufacturing

It's possible that Missouri's rate of unemployment is currently low due to the number of jobs added since the slowing of the pandemic.

9. (tied) Montana: 2.8%

Montana's three top job sectors are:

• Agriculture and forestry
• Mining
• Energy production

It may be the fourth spot on this list that helps keep the state's unemployment rate low: Services. An estimated 33% of the state's workforce is employed in the service sector.

12. (tied) Idaho 2.9%

By revenue, here are the top three job sectors in Idaho:

• New car dealers
• Supermarkets and grocery stores
• Hospitals

Low unemployment rates are nothing new for Idaho. The credit may go to limited government regulations and low taxes.

12. (tied) Kansas 2.9%

Kansas, home of Dorothy and Toto, is also home to these three top-grossing job sectors:

• Finance and insurance
• Real estate, rental, and leasing
• Manufacturing

The state of Kansas has secured more than 650 economic development programs since 2018, injecting the economy with billions of dollars and jobs.

The low unemployment rate enjoyed across the country has come as a bit of a surprise to economists forecasting a recession. While the year is young and anything could happen, the current unemployment rate is a good sign.