Unemployment rate history · 2025
Unemployment Rate in 2025
In 2025, the US unemployment rate averaged 4.20% of the labor force — the 29th-highest of the 35 years on record. Here's where that sits in 35 years on record, the story behind it, that year's Misery Index, and how it compares with the 4.2% of 2025.
- 2025 unemployment 4.20% of the labor force
- vs prior year +0.18 pts from 4.02% in 2024
- vs today 4.2% in 2025
- 1991–2025 average 5.68% long-run norm
The Misery Index in 2025
The Misery Index adds the unemployment rate to the inflation rate to gauge how much economic pain a typical household feels. We don't have a matching annual inflation figure for 2025 in our dataset, so this page focuses on the jobs side of the story. For the price side, see historical inflation rates.
What happened to jobs in 2025
In 2025, the unemployment rate ran at 4.20%, up from 4.02% in 2024. That made it the 29th-highest of the 35 years on record, and below the long-run average of 5.68%. For comparison, unemployment sits at about 4.2% today — a gap of 0.00 points.
How 2025 compared
Across the full 1991–2025 record, unemployment has averaged about 5.68%, so 2025 ran below that long-run norm. Within the 2020s, the jobless rate averaged roughly 4.82%, and 2025 sat below its own decade. Five years earlier, in 2020, the rate was 8.05%.
The labor market and borrowing costs move together: a weak jobs market often pushes the Fed to cut rates, while a hot one invites hikes. See what mortgage rates did in 2025 for another angle on the same economy.
This is one year out of the whole story. For the complete history — every year since 1991, the all-time high and the record low, the decade-by-decade view, and what drives unemployment over time — see historical unemployment rates, 1991–today.
Unemployment in 2025 — FAQ
What was the unemployment rate in 2025?
The US unemployment rate averaged 4.20% of the labor force in 2025. That was up 0.18 points from 4.02% the year before.
Was unemployment high or low in 2025?
Measured against the full 1991–2025 record, 2025's 4.20% was the 29th-highest of the 35 years on record, and below the long-run average of 5.68%.
How does 2025 unemployment compare with today?
In 2025, unemployment averaged 4.20%, versus 4.2% in 2025 — a difference of 0.00 points. The long-run (1991–2025) average is 5.68%.
