There are few things as fundamentally important to the well-being of an economy as employment, and it’s no different in the heartland. Each month, the Bureau of Labor Statistics releases new data on job gains and the unemployment rate at the national, state, and metropolitan levels. While most of the conversation around these numbers is focused at the national level, the state and community-level data can reveal a more nuanced narrative on the US economy. 

The discussion below focuses on the nuances revealed when comparing heartland and non-heartland labor markets, which then inform how economic factors such as inflation or the growth of local manufacturing impact the overall economic health of the heartland as a whole.

Heartland Employment Snapshot:

• Employment gains: Over the past 12 months, heartland job growth has slightly outpaced job growth in the rest of the country (1.5% growth vs. 1.4% growth). Given the year’s economic headwinds, like high interest rates and inflation, this growth is notable and reflects the strong economic underpinnings of the heartland job market. 
• Industry Highlights:
  • Manufacturing: The total job loss in the manufacturing sector from December 2023 to December 2024 was 86,800. Of those jobs, nearly 90% (78,000 jobs) were lost outside of the heartland, while the heartland lost 8,800 manufacturing positions.
  • Information: Outside of the heartland, the information sector lost around 38,000 jobs over the past 12 months. The heartland added 3,400 information jobs.
  • Construction: While both the heartland and national economies reported job gains in construction, the heartland growth rate was more than double that of the rest of the country (3.6% vs. 1.4%).
  • Health Care: The “silver tsunami”, or the increase in Americans over 65, has contributed to major job growth within the health care service industry inside and outside of the heartland. 
• Growth Continues: After posting weak job gains from October to November (36,200 jobs added), heartland growth rebounded from November to December (95,400 jobs added). Thus, the heartland economy continues to show signs of strength in this high interest rate environment. 
• Unemployment:
  • While the heartland unemployment rate (4.1%) remains lower than the unemployment rate in the rest of the country (4.2%), both rates have increased over the past 12 months. 
  • Unemployment rate increases are not always a bad thing. Some economists would argue that a rate below 4% indicates the labor market is too hot, with employers hiring workers for jobs they are not suited for in an attempt to meet demand for their products or services.

Heartland State Spotlight:

• North and South Dakota are home to two of the nation’s hottest labor markets, with respective unemployment rates of 1.9% and 2.5%. This should have major implications for wage growth as businesses in the Dakotas compete for top talent and drive up competitive wages.
  • North Dakota posted the 2nd-highest growth rate among heartland states from November 2024 to December 2024, and fourth highest nationally (2.6%).
• Missouri remains one of the fastest-growing states in the country, with the second-highest percentage increase in employment over the past 12 months (2.8%). While Missouri’s growth slowed from July to November, it reversed that trend by growing faster than any other state from November to December. 
• Texas has gained the most jobs of any state since December 2023 (284,200), adding 104,000 more jobs than the state in 2nd-place—California. Texas added 37,500 jobs from November to December, accounting for four out of every 10 jobs gained in the heartland.