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    U.S. Cities With the Highest Unemployment Rates in 2021

    U.S. Cities With the Highest Unemployment Rates in 2021

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    By David Heacock

    The U.S. job market has made great strides in its recovery since the early days of the COVID-19 pandemic. In April 2020, the unemployment rate skyrocketed to 14.7%, the highest it's been since the Great Depression. But since spring of 2020, the unemployment rate has fallen steadily and currently stands below 4%, just slightly higher than the pre-pandemic rate of 3.5%. While all sectors of the economy were impacted by the pandemic and shutdown in early 2020, some parts of the economy have bounced back more quickly than others.

    For example, while the unemployment rate could reach pre-pandemic levels by this summer, the labor force participation rate continues to lag behind. In February 2020, the labor force participation rate was 63.4%. After dropping sharply in the early stages of the pandemic and then partially recovering, it is still nearly a full percentage point below the pre-pandemic level.

    Line graph showing U.S. unemployment and labor force participation from 2000–2022.

    There are several reasons for reduced labor force participation. Many older workers decided to retire early during the pandemic and are unlikely to return. Nearly 1 million Americans, many of which were part of the workforce, have died from COVID, and millions more are suffering from long COVID and unable to work. Additionally, school and daycare closures have forced many parents to leave their jobs due to caregiving responsibilities.

    Besides reduced labor force participation, other aspects of the job market still have progress to be made. Some industries, particularly ones that are highly reliant on face-to-face interactions, remained hindered in 2021. The leisure and hospitality sector was the hardest hit of all; its annual unemployment rate jumped to 19.4% in 2020 from 5.2% in 2019. By 2021 its annual unemployment rate had dropped to 10.1%, still nearly double its pre-pandemic rate. Unemployment in mining, quarrying, and oil and gas extraction has also been slow to recover, but that is likely to change amid the Russian oil ban. The sector’s average unemployment rate was over 11% in 2020 and 2021.

    Bar chart comparing unemployment rates across industries in 2019, 2020, and 2021.

    On a geographic level, states that rely heavily on tourism, leisure, and hospitality were more likely to have elevated unemployment rates in 2021. Additionally, states with more restrictive COVID policies also tended to have more impacted workforces. California, Nevada, and New York had the highest unemployment rates in 2021, at 7.3%, 7.2%, and 6.9% respectively. At the other end of the spectrum, states in the Midwest, Mountain West, and South reported the lowest levels of unemployment. For example, in 2021, Utah and Nebraska had unemployment rates of just 2.7% and 2.5%.

    U.S. map showing states with highest average annual unemployment rates in 2021.

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    To determine the U.S. metropolitan areas with the highest overall unemployment rate in 2021, researchers at Filterbuy analyzed data from the U.S. Bureau of Labor Statistics. The researchers ranked metros according to the average annual unemployment rate in 2021. Researchers also calculated the average number of unemployed workers in 2021, the change in unemployment rate since 2020, and the change in unemployment rate since 2019. To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis.

    Here are the metros with the highest unemployment rates in 2021.

    List of small and midsize U.S. metros with highest unemployment in 2021.

    Large Metros With the Highest Unemployment in 2021

    Memphis downtown skyline under cloudy skies with a mix of modern and historic buildings.

    Photo Credit: Sean Pavone / Shutterstock

    15. Memphis, TN-MS-AR

    Night view of a steel bridge in Cleveland with city skyline in the background.

    Photo Credit: The American Wanderer / Shutterstock

    14. Cleveland-Elyria, OH

    Daytime view of the iconic yellow bridge in Pittsburgh with city buildings in the distance.

    Photo Credit: AevanStock / Shutterstock

    13. Pittsburgh, PA

    Sacramento skyline at dusk with a mix of historic and modern architecture.

    Photo Credit: Andrew Zarivny / Shutterstock

    12. Sacramento-Roseville-Folsom, CA

    Upward view of a black metal fire escape on a tan brick apartment building.

    Photo Credit: Concrete Jungle Media / Shutterstock

    11. Detroit-Warren-Dearborn, MI

    Residential street in San Diego with a view of downtown skyline at sunset.

    Photo Credit: Lucky-photographer / Shutterstock

    10. San Diego-Chula Vista-Carlsbad, CA

    Philadelphia skyline at dusk viewed from Ben Franklin Bridge with motion blur from lights.

    Photo Credit: Sean Pavone / Shutterstock

    9. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

    Downtown Houston streetscape with modern skyscrapers under bright sunlight.

    Photo Credit: Tomas Simkus / Shutterstock

    7. Houston-The Woodlands-Sugar Land, TX

    Chicago L-train station between tall buildings with Willis Tower in background.

    Photo Credit: Jonathan Siegel / Shutterstock

    6. Chicago-Naperville-Elgin, IL-IN-WI

    Historic French Quarter buildings in New Orleans with intricate wrought iron balconies.

    Photo Credit: evenfh / Shutterstock

    5. New Orleans-Metairie, LA

    Street view in San Bernardino at dusk with palm trees and mountains in the background.

    Photo Credit: Matt Gush / Shutterstock

    4. Riverside-San Bernardino-Ontario, CA

    Urban skyline with a street lined by mid-rise buildings and heavy traffic at sunset.

    Photo Credit: William Perugini / Shutterstock

    3. New York-Newark-Jersey City, NY-NJ-PA

    Distant view of the Las Vegas Strip glowing at dusk with mountains in the background.

    Photo Credit: f11photo / Shutterstock

    2. Las Vegas-Henderson-Paradise, NV

    Downtown Los Angeles skyline with Dodger Stadium and tree-covered hills in the foreground.

    Photo Credit: Eric Urquhart / Shutterstock

    1. Los Angeles-Long Beach-Anaheim, CA

    Detailed Findings & Methodology

    To determine the locations with the highest overall unemployment rate in 2021, researchers at Filterbuy analyzed the data from the U.S. Bureau of Labor Statistics’s Local Area Unemployment Statistics. The researchers ranked locations according to the average annual unemployment rate in 2021. In the event of a tie, the location with the larger average number of unemployed workers in 2021 was ranked higher. Researchers also calculated the change in unemployment rate since 2020, and the change in unemployment rate since 2019. To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into cohorts by population: small (100,000–349,999), midsize (350,000–999,999), and large (1,000,000+).