As of the latest available data going into early 2026, the District of Columbia has the highest unemployment rate in the United States, not a state but the federal district that consistently tops the list.

Quick Scoop

  • Recent federal agency layoffs and restructuring have pushed unemployment in the District of Columbia above all states, with rates reported in the mid‑5% to low‑6% range in 2025.
  • Among actual states, California , Nevada , and Michigan are regularly near the top, with unemployment rates in the mid‑5% range during 2025, reflecting stress in tech, tourism, entertainment, and manufacturing.
  • Nationwide, the U.S. unemployment rate has been hovering a bit above 4%, so D.C. and these high‑unemployment states are notably above the national average.

Why D.C. Is Highest

  • The capital’s job market is heavily exposed to federal government employment, so hiring freezes and layoffs there ripple quickly through the local economy.
  • Recent policy changes and cuts in some federal agencies have contributed to a jump from around 5% in early 2024 to the highest rate in the country by mid‑2025.

States Close Behind

  • California & Nevada: Struggles in tech, tourism, and entertainment have kept their unemployment rates among the highest.
  • Michigan : Weakness in manufacturing and autos has left it near the top of the unemployment rankings as well.

In short, if the question is “which state has the highest unemployment rate,” the practical answer right now is: the District of Columbia is highest overall, and among states, California, Nevada, and Michigan are usually the top three.

Information gathered from public data available on the internet and portrayed here.