February’s labor market data point to a notable pullback in employment, with job losses concentrated across a majority of states and only modest gains elsewhere. While January showed solid momentum, February’s decline reflects emerging softness in hiring conditions, alongside uneven performance across the country.
In February, nonfarm payroll employment increased in 14 states compared to January, while 36 states recorded declines. The District of Columbia reported no change. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment fell by 133,000 in February, following a robust 160,000 job gain in January.
On a month-over-month basis, employment gains were led by Arizona (+11,000), followed by Indiana (+3,600). Louisiana and New Mexico tied for third place with 2,700 job gains each. In contrast, a total of 217,200 jobs were lost across 36 states, with New York posting the largest decline (-22,000). In percentage terms, Wyoming recorded the strongest increase (+0.4 percent), while Nebraska experienced the largest decrease (-0.6 percent) between January and February.
On a year-over-year basis ending in February, total nonfarm employment increased by 149,000 jobs nationwide, representing a 0.1 percent gain relative to February 2025. Job gains ranged from 500 in New Mexico to 120,500 in California. Twenty-seven states and the District of Columbia collectively lost 342,400 jobs over the past 12 months, with Maryland experiencing the largest decline (-52,700). In percentage terms, job growth ranged from 0.1 percent in North Dakota, New York, Ohio, Kansas, Connecticut, New Mexico, and Missouri to 2.2 percent in Nevada. Among states with losses, declines ranged from 0.1 percent in Delaware, Mississippi, Louisiana, New Jersey, Georgia, and Kentucky to 1.9 percent in Maryland; the District of Columbia, however, recorded a substantially larger decline of 5.5 percent.
Construction Employment
Construction employment 1—which includes both residential and non-residential construction, showed job losses in February. Twenty-two states added construction jobs compared to January, while 27 states and the District of Columbia experienced declines; South Dakota reported no change. Florida posted the largest monthly gain, adding 1,100 jobs, while New Jersey recorded the largest loss (-5,900). Overall, the construction sector lost a net 13,000 jobs nationwide in February. In percentage terms, Montana recorded the strongest monthly increase (+1.3 percent), while Delaware experienced the steepest decline (-4.4 percent).
Year-over-year, construction employment increased by 37,000 jobs nationwide, a 0.4 percent gain compared to February 2025. Texas led all states with an increase of 24,000 construction jobs, while California recorded the largest loss (-10,300). In percentage terms, Montana posted the strongest annual growth in construction employment (+8.8 percent), while Alaska experienced the largest decline (-5.6 percent).
State Unemployment Rate
The state unemployment rate is a key economic indicator that reflects the health of local labor markets, measuring the percentage of the workforce actively seeking work but unable to find it. High unemployment signals a weakening state economy, while low unemployment suggests a tight labor market that may contribute to rising wage pressures.
Hawaii and South Dakota had the lowest unemployment rates at 2.3 percent, while the District of Columbia had the highest rate at 6.5 percent. This elevated rate reflects significant federal workforce reductions and layoffs, exceeding 300,000 positions, which disproportionately affected the District in 2025. Vermont, North Dakota, and Alabama reported unemployment rates below 3.0 percent. South Carolina, Michigan, Illinois, Washington, New Jersey, Oregon, Nevada, California, and Delaware all recorded unemployment rates at or above 5.0 percent.