Major Markets with Lowest Unemployment Rates in May

As of May, the nation’s unemployment rate averaged 4% after rising 30 basis points (bps) year-over-year, according to non-seasonally adjusted data from the Bureau of Labor Statistics. However, 12 of the nation’s 50 largest markets had rates below 3.5%. Miami and Nashville claimed the lowest unemployment rates in May, both at 2.7%. Both those markets lost some traction recently, with unemployment rising year-over year by 40 bps in Miami and 20 bps in Nashville. Indianapolis and Minneapolis tied for the third lowest unemployment rate in May at 3.1%. Unemployment in Indianapolis declined 60 bps over the past year, while the rate in Minneapolis rose 40 bps. Tying for the nation’s fifth lowest unemployment rate of 3.2% were Baltimore and Raleigh/Durham, after year-over-year increases of 50 bps and 20 bps, respectively. Atlanta, Austin, Fort Lauderdale and Salt Lake City all recorded May unemployment at 3.3%, tying for the seventh lowest rate nationally. Over the past year, unemployment was down in Atlanta (-10 bps) and unchanged in Austin, while unemployment increased in Fort Lauderdale (+40 bps) and Salt Lake City (+30 bps). Orlando and West Palm Beach tied with the 11th lowest unemployment rate of 3.4% in May, after rising 40 bps and 30 bps, respectively. On the flip side, Las Vegas continued to record the nation’s highest unemployment rate of 5.5% in May 2025, unchanged from May 2024.