These States Are Most at Risk for Workforce Instability in 2026

The February 2026 report on the workforce sustainability across America found that New Mexico has the most unstable labor market in the country. A new study by Affordable Contractors Insurance examined which states experienced the worst workforce volatility. New Mexico's unemployment rate rose by 1.24% while job openings fell by 1.40%, marking the highest instability in the US.

• New Mexico shows the most unstable workforce conditions in America, with unemployment fluctuating by 1.24%, the highest swing in the country. 

• Available job positions dropped most sharply in Colorado, falling 1.9%.

• Western and Southern states experienced the biggest workforce disruptions, with unemployment rising above 1.2% in multiple states.

The report examined how workforce stability changed across all 50 states. Researchers tracked month-to-month fluctuations in unemployment rates over five years, showing how unpredictable job security became for workers. They measured changes in job openings from October 2024 to October 2025 to see if employers were hiring more or pulling back. The study also looked at how many workers landed new positions and how often employees felt confident leaving their jobs voluntarily. Each state received a Workforce Volatility Score from 0 to 100, with higher scores indicating worse instability for workers.

Here's a look at the top 10 most volatile states for workforce sustainability:

State	Unemplyment Rate Volatility	Job Openings Rate Change from:  2024 Oct - Oct. 2025	Hires Levels Rate Change from:  2024 Oct - Oct. 2025	Quits Levels Rate Change from:  2024 Oct - Oct. 2025	Volatility Score
New Mexico	1.24%	-1.40%	-0.20%	-0.50%	99
Colorado	0.85%	-1.90%	0.00%	-0.10%	81
Maryland	1.06%	-0.60%	-0.90%	-0.10%	76
Hawaii	1.31%	-0.90%	-0.20%	-0.20%	75
Mississippi	0.82%	-0.40%	-0.80%	-0.60%	69
New York	1.13%	0.60%	0.50%	0.20%	67
Kentucky	0.37%	-1.10%	-0.50%	-0.60%	64
Georgia	0.24%	1.00%	-0.70%	-0.60%	62
Oklahoma	0.34%	0.50%	-1.10%	-0.50%	60
Texas	0.63%	0.80%	-0.70%	-0.10%	57

You can access the complete research findings here.

    1. New Mexico

• Unemployment Rate Volatility: 1.24%

• Job Openings Rate Change from: 2024 Oct - Oct. 2025: -1.4%

• Hires Levels Rate Change from: 2024 Oct - Oct. 2025: -0.2%

• Quits Levels Rate Change from: 2024 Oct - Oct. 2025: -0.5%

• Volatility Score: 99/100

New Mexico ranks first for workforce instability, as employees face the country's most uncertain job market. The state's unemployment rate fluctuated by 1.24%, more than any other state. Employers posted 1.4% fewer vacancies compared to the previous year and hired 0.2% fewer workers, significantly shrinking job opportunities. The workers also try to keep their current positions, with 0.5% fewer people voluntarily leaving their jobs.

    2. Colorado

Colorado ranks second, where workers face the sharpest decline in job opportunities among highly unstable states. The number of available jobs dropped by 1.9%, sharply reducing options for workers seeking new positions. Unemployment fluctuated by 0.85% during this period, adding instability to an already difficult job market. Hiring stayed the same while workers grew more cautious, with 0.10% fewer people leaving their jobs.

    3. Maryland

Maryland ranks third, with employers reducing hiring by 0.90%, the steepest drop among unstable East Coast labor markets. Fewer workers found new positions despite actively seeking jobs. Unemployment shifted by 1.06% while employers posted 0.60% fewer job openings, making it harder for workers to find stable employment. 

    4. Hawaii

Hawaii's unemployment rate fluctuated by 1.31%, the highest swing in the nation, leaving workers unable to predict their job security month to month. Employers posted 0.9% fewer job openings than the previous year and hired 0.2% fewer workers, reducing available positions.

    5. Mississippi

Mississippi ranks fifth, with the fewest workers willing to quit their jobs. Voluntary departures fell 0.6%, the largest decline among states with unstable labor markets. Unemployment shifted by 0.82% while employers pulled back on both posting new positions and bringing workers on board, leaving fewer options for anyone considering a job change.

Sean O'Keefe, CEO & Founder of Affordable Contractors Insurance, commented on the study: 

"When unemployment jumps around month to month, workers can't make confident decisions about their jobs. One month might look stable, so you think about asking for a raise or switching careers. Then a few weeks later, the numbers flip and suddenly changing anything feels risky. This makes everyday choices harder, like whether your family can get by on one income, or if it's safe to spend money on training for a better job. When workers never know if their industry is doing well or not, many just freeze up and stay in jobs they don't like because making a move feels too uncertain."