Employment rates in nearly one-third of U.S. states remain below pre-pandemic levels, with California and New York showing the largest declines, likely reflecting increased immigration to other parts of the country. In total, employment fell by more than 1 million people in 16 states, according to Bureau of Labor Statistics household data. Maryland and Illinois have also seen significant declines in employment since February 2020.
Over the past four years, employment has fallen by 266,500 in Los Angeles alone and nearly 133,000 in New York.
Meanwhile, employment in Texas increased by 1 million from February 2020, followed by Florida, which increased employment by nearly 725,000.
Across the United States, the labor market has recovered with more people working than before the pandemic, but an industry and geographic analysis shows the job market is very different than before.
While employment levels, as measured by the Bureau of Labor Statistics Household Survey, rebounded in 2022, some industries are still struggling.
Data from the Atlanta Fed shows OPTICS employment is about 1.9 million lower than 2019 levels. OPTICS jobs include office and administrative support, production, transportation and material handling, installation, maintenance and repair, construction and mining, and sales, and accounted for 41% of jobs in 2019.
For a year or so after the outbreak, there was an oversupply of labor. But that has reversed as the economy and businesses have opened up after the coronavirus lockdown, pushing wages higher while helping to lower unemployment.
U.S. labor demand remains higher than supply. Nonetheless, the gap is narrowing and regional differences are also evident.
North Dakota had the lowest unemployment rate in February at 2%, followed by South Dakota at 2.1%. California has the highest unemployment rate in the country at 5.3%, followed by Nevada at 5.2%, and Illinois and New Jersey both at 4.8%.
In many Western states, unemployment is almost a full percentage point higher than four years ago. In New York, the unemployment rate rose from 4.3% to 5.1% last month.