The unemployment rate in Missouri has been rising since its initial spike during the COVID-19 pandemic. During the pandemic, the unemployment rate in Missouri rose to just over 6%. In 2022, it came down to around 2.5%, which was lower than pre-pandemic levels.
Now, the rate is rising again. As of December 2025, the unemployment rate was 4%. Washington University economics professor John Horn said tariffs implemented by the Trump administration could be a cause.
"The tariff policies and the uncertainty from the administration is not making it easy for firms to hire," Horn said.
Horn added this rise in unemployment could also have to do with companies' increased use of AI.
"A lot of firms believe that generative AI, ChatGPT, Gemini, Claude, whatever you want, is going to be the solution to getting work done," Horn said.
Horn specified unemployment is likely rising because people who are trying to enter the work force right now are having trouble getting hired, not because people who are already in the workforce are being fired.
1099-G tax forms allow people to report the unemployment benefits they have received from the state. The number of people in Missouri filing 1099-G tax forms this year is the highest it's been since 2021, according to the Missouri Department of Labor.
Missourians who received unemployment benefits in 2025 have until April 15 to report those payments to the Internal Revenue Service. 1099-G forms are now available for people who received unemployment benefits from Missouri last year.
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