State labor market conditions showed modest improvement in March, with job gains concentrated in several large states and the construction sector continuing to expand. However, employment declines across a number of states and mixed unemployment rate trends point to uneven momentum across regional economies.
In March, nonfarm payroll employment increased in 34 states and the District of Columbia compared to February, while 15 states recorded declines. Vermont reported no change. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment rose by 178,000 in March, following a loss of 133,000 jobs in February.
On a month-over-month basis, employment gains were led by Texas (+46,800), followed by California (+28,700), and Florida (+28,100). In contrast, a total of 21,500 jobs were lost across 15 states, with Oregon posting the largest decline (-4,800). In percentage terms, Tennessee recorded the strongest increase (+0.4 percent), while Oregon experienced the largest decrease (-0.2 percent) between February and March.
On a year-over-year basis ending in March, total nonfarm employment increased by 260,000 jobs nationwide, representing a 0.2 percent gain relative to March 2025. Job gains ranged from 100 in Wyoming to 144,700 in California. Collectively, 27 states and the District of Columbia lost 299,900 jobs over the past 12 months, with Maryland experiencing the largest decline (-49,900).
In percentage terms, job growth ranged from 0.1 percent in Delaware, Mississippi, New Jersey, and Georgia to 1.8 percent in Nevada. Wyoming, Maine, and Connecticut reported no change during the past 12 months. Among states with losses, declines ranged from 0.1 percent in Illinois, Montana, New York, and Kentucky to 1.8 percent in Maryland; however, the District of Columbia recorded a substantially larger decline of 5.3 percent.
Construction Employment
Construction employment 1—which includes both residential and non-residential construction, showed job gains in March. Thirty-one states and the District of Columbia added construction jobs compared to February, while 14 states experienced declines; five states reported no change. Ohio posted the largest monthly gain, adding 5,300 jobs, while Nevada recorded the largest loss (-2,600). Overall, the construction sector added a net 26,000 jobs nationwide in March. In percentage terms, Delaware recorded the strongest monthly increase (+4.2 percent), while Nevada experienced the steepest decline (-2.3 percent).
Year-over-year, construction employment increased by 57,000 jobs nationwide, a 0.7 percent gain compared to March 2025. Texas led all states with an increase of 21,600 construction jobs, while California recorded the largest loss (-9,400). In percentage terms, Missouri posted the strongest annual growth in construction employment (+5.2 percent), while Alaska experienced the largest decline (-6.5 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.
South Dakota had the lowest unemployment rates at 2.3 percent, while the District of Columbia had the highest rate at 6.3 percent. This elevated rate reflects significant federal workforce reductions and layoffs, exceeding 300,000 positions, which disproportionately affected the District in 2025. Hawaii, North Dakota, Vermont, and Alabama reported unemployment rates below 3.0 percent. Michigan, Illinois, Washington, Oregon, Nevada, California, and Delaware all recorded unemployment rates at or above 5.0 percent.