Nov 21, 2021 - Economy

Nebraska records lowest unemployment rate in U.S. history

Yacob Reyes

A ''Now Hiring" sign hangs above the entrance to a McDonald's restaurant on Novembe — Photo: Joe Raedle/Getty Images

Nebraska's unemployment rate fell to 1.9% last month — the lowest for any state since data collection began in 1976, AP reports.

The big picture: The number is in sharp contrast with the national, seasonally adjusted rate of 4.6% in October. Nebraska had maintained the lowest unemployment rate among the states throughout the pandemic.

The rate represents the first time any state's jobless numbers have fallen below 2%, per AP. The unemployment rate in the state capital of Lincoln was even lower at 1.3%.

Yes, but: Nebraska has had a labor shortage since even before the pandemic, per AP. It has driven up wages and made it difficult for employers to hire and expand.

Rural states typically have lower unemployment rates for many reasons, namely because they offer more jobs with ties to agriculture and food production, AP notes.

What's happening: Eric Thompson, an economics professor at the University of Nebraska-Lincoln, told The Wall Street Journal the state's strong high-school graduation rate helps.

"More educated workers ... are just less likely to be laid off and more likely to find work quickly," he said.

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Nebraska records lowest unemployment rate in U.S. history

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