Job hunting can be daunting, with opportunities varying widely across regions. Knowing which states have the most job openings can greatly aid in making informed career decisions. Join us as we identify the states with the highest and lowest job openings in the US.
This list is based on a report by Schmidt & Clark, which analyzed the latest Bureau of Labor Statistics (BLS) data on job opening rates during this period. The analysis highlights the monthly percentage of unfilled jobs in each state.
Here are the top five states with the highest job openings.
Alaska
According to the BLS data, the study by Schmidt & Clark found that Alaska had the highest job opening rate between April 2023 and April 2024. The average job opening rate in this period has been 7.35%, whereas August 2023 was the peak, with an 8.9% job opening rate. The lowest was recorded in January 2024, with 6.7%. These numbers can be explained by the fact that Alaska’s economy heavily relies on industries susceptible to seasonal variations, such as tourism, fishing, and oil and gas extraction. The summer months, when tourist activity is at its peak, typically witness a surge in job openings across various sectors. Conversely, the winter months, characterized by reduced economic activity in these industries, lead to a contraction in the job market.
West Virginia
West Virginia had the second-highest job opening rate, 6.2%. In May 2023, the state witnessed the highest, 7.4%, and in February 2024, it hit its lowest, 5.6%. The state’s reliance on industries like coal mining and manufacturing has undergone substantial shifts. A mix of economic diversification efforts, infrastructure development projects, and potential labor shortages due to outmigration might contribute to the higher job openings.
South Carolina
South Carolina had the third-highest job opening rate at 6.69%. The rate peaked at 7.2% in May 2023 and reached its lowest at 6.2% in April 2024. The high rate in May 2023 may reflect seasonal or industry-specific booms, while the decline to 6.2% suggests market stabilization. According to BLS, management occupations provided the highest employment in May 2023. The state’s growing manufacturing and service sectors and potential labor shortages contribute to this sustained job opening rate.
Colorado
Colorado had an average job opening rate of 6.53% in the said period. April 2023 saw the highest opening rates with 8.2%, and June 2023 saw the lowest with 5.9%. There was no such clear pattern with the fluctuations. However, this volatility could be attributed to factors such as the state’s tourism-driven economy, with higher openings during peak seasons and lower rates during off-peak times. Additionally, Colorado’s growing tech and outdoor recreation industries might also contribute to employment fluctuations.
Montana
Montana was the fifth state with the highest job openings, with 6.43%. The state experienced the highest job opening rates in April 2023, at 7.3%, and the lowest in March and April 2024, at 5.9%. From the data, it can be said that Montana’s job market reflects a pattern of seasonal variation. According to BSL’s May 2023 data, management occupations gave out one the highest number of employment in Montana. The peak season was likely due to factors such as agriculture, tourism, and construction activity. The subsequent decline suggests a return to more normalized levels, potentially influenced by weather conditions and industry cycles.
Here are the five states that had the lowest job openings between April 2023 and April 2024.
New Jersey
New Jersey’s relatively low job opening rate of 4.86% between April 2023 and April 2024 can be attributed to several factors. It holds the fifth rank for providing the lowest percentage of job openings. Firstly, the overall economic slowdown of the United States is a factor directly affecting job openings. A decrease in consumer spending and business investment can lead to reduced hiring needs across various industries. New Jersey has a well-established industrial base with a focus on sectors like pharmaceuticals, manufacturing, and agriculture. While these industries provide stable employment, they might experience slower growth compared to emerging sectors, leading to fewer job openings.
Hawaii
Hawaii’s low job opening rate of 4.62% can mainly be explained by its isolation and limited land area. The geography of Hawaii restricts the potential for large-scale industrial development and job creation. This limits the number of industries that can thrive in the state. While tourism is a significant economic driver for Hawaii, it’s a seasonal industry with fluctuating job demands. This can lead to employment instability and fewer consistent job openings throughout the year. Plus, Hawaii’s population is relatively small, and the labor pool might not be as extensive as in larger states. This can create challenges for businesses in finding qualified workers, potentially leading to fewer job openings.
New York
New York has one of the lowest job openings between April 2023 to April 2024. The state has a mature economy with a strong presence in finance, media, and technology. While these sectors provide stable employment, they might experience slower growth compared to emerging industries, leading to fewer job openings. Plus, York is a highly competitive market for talent, with numerous companies vying for skilled workers. This intense competition can lead to lower job turnover rates and fewer openings. Not to forget, New York’s cost of living is extremely high. This can deter businesses from expanding and creating new job positions due to increased operational costs.
Washington
With a 4.57% job opening rate, Washington is in the bottom two. While the tech industry in Washington, particularly in Seattle, has been a major economic driver, it’s also known for periods of rapid growth followed by consolidation and layoffs. This can contribute to fluctuations in job openings.
California
California’s exceptionally low job opening rate of 4.50% is a complex issue with several contributing factors. To start with, California is renowned for its extremely high cost of living, impacting residents and businesses. This high cost makes it challenging for companies to expand and create new job positions. While the tech industry has been a major driver of California’s economy, recent layoffs and economic downturns within this sector have significantly impacted job openings. Additionally, California has a complex regulatory environment, which can increase operational costs for businesses and deter new investments and job creation.