States With the Most Job Growth in the US

Total nonfarm payroll employment increased by 263,000 in September, and the unemployment rate edged down to 3.5 percent, the U.S. Bureau of Labor Statistics reported last month. Notable job gains occurred in leisure, hospitality, and healthcare.

Currently, it’s a job seekers’ market, which may inspire some to take the risk of moving to a new state or city. 

US News listed the top four US states with the most recent job growth based on three metrics: unemployment, job growth, and labor force participation. All four states boasted a growth rate of more than 3%. 

While the labor force participation rate measures the percentage that is either employed or actively looking for a job, the unemployment rate delves deeper to calculate the percentage of the labor force that is out of work.

Arizona

US News ranked Arizona the number one state in the US for job growth this year. 

According to a 2021 Arizona Office of Economic Opportunity (OEO) report, Arizona will see more than 700,000 new jobs over the next decade. Specifically, the state’s employment may increase from 3,030,216 jobs in 2020 to 3,751,905 jobs in 2030. These numbers translate to a growth of 721,689 jobs (2.2% annualized growth). 

Experts expect the most significant job gains in education, health services, and construction. 

“These projections are based on current trends and trajectories, which reflect the efforts of recent years to grow advanced manufacturing, diversify our economy, improve the state’s attractiveness for business and investment and rebound quickly from the pandemic,” Sandra Watson, president and CEO of the Arizona Commerce Authority said in the release.

“Arizonans will benefit from creating more quality jobs and greater opportunity throughout our state,” Watson continued. 

Nevada

According to an official government press release, Nevada has recovered all of the jobs lost during the COVID-19 pandemic and reached a new all-time high of 1,452,600 jobs- 3,000 more jobs than the previous peak in February 2020.

Additionally, Nevada added 7,600 jobs in June 2022 and employment was up 90,400 since the previous year. The state’s unemployment rate declined two points from May to June, from 4.9% to 4.7%. 

“These numbers reflect the growing diversification of the state’s economy, as the leisure and hospitality sector is still 30,000 jobs below the peak,” David Schmidt, chief economist, said in the release. “The state’s employment recovery is due to the stronger employment gains in other industries, which often pay significantly higher average wages.”

Colorado

The Colorado economy has been historically strong compared to other states, especially during the COVID-19 pandemic.

Despite declines in 2020, Colorado recovered nearly all 375,000 jobs lost during the pandemic and hit the pre-pandemic unemployment rate of 5% in March 2022. The year-over-year increase resulted in 111,700 new jobs.

Industries such as retail, recreation, entertainment, arts, and trade have recovered all jobs and expect significant growth over the next few years. 

“Colorado’s strong economic growth proves that we are stronger and more resilient than ever,” Colorado Governor, Jared Polis, said in a press release. “Our successful efforts to save people money on everyday items, cut property taxes for people and businesses, and help Coloradans hold on to more of their hard-earned money will help further improve our economy and job growth.”

Idaho

Idaho led the nation in job growth coming out of the pandemic. November 2021’s jobless rate stood at 2.6% compared to 4.2% nationwide. 

Additionally, the state’s seasonally adjusted unemployment rate increased from 2.7% in August to 2.8% in September 2022 – the eighth consecutive month Idaho’s rate is below 3%, according to an October 2022 Idaho Department of Labor report. 

Total employment grew by 1,714 (0.2%) to 932,813. Industry sectors with the greatest over-the-month gains include information (4.9%); arts, entertainment and recreation (4.5%); private educational services (2.8%); nondurable goods manufacturing (1.9%); real estate and rental and leasing (1.0%); and construction (0.8%). 

The department’s newest short-term projections forecast roughly 34,000 new jobs in the state through 2023 for a growth rate of 2.1% per year.