State labor market conditions softened in June as hiring slowed across much of the country. While a majority of states recorded payroll employment gains during the month, national job growth moderated and employment declines remained widespread in several states. Construction employment continued to expand modestly, though performance varied considerably by state, reflecting ongoing differences in regional economic activity and building conditions.
In June, nonfarm payroll employment increased in 33 states and District of Columbia (D.C.). compared to May, while 17 states recorded declines. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment rose by 57,000 jobs in June, following an increase of 129,000 jobs in May.
On a month-over-month basis, employment gains were led by Texas (+43,400), followed by Minnesota (+13,200), and Florida (+11,100). In contrast, the 17 states that recorded losses collectively shed 38,400 jobs, with Georgia posting the largest decline (-10,100). In percentage terms, New Hampshire recorded the strongest increase (+0.6%), while West Virginia experienced the largest decrease (-1.2%) between May and June.
Over the 12 months ending in June, total nonfarm employment increased by 506,000 jobs nationwide, representing a 0.3% gain. Job gains ranged from 500 in Michigan to 177,900 in Texas. Collectively, 12 states and D.C. lost 147,500 jobs over the past 12 months, with Virginia recording the largest decline (-43,600).
In percentage terms, job growth ranged from 0.1% in Illinois, Georgia, and Wisconsin to 2.3% in Nevada. Washington and Michigan reported no change during the past 12 months. Among states experiencing employment declines, losses ranged from 0.1% in Maine, Nebraska, and Indiana to 1.0% in Virginia and Montana. D.C., however, recorded a substantially larger decline of 4.8%.
Construction Employment
Construction employment 1—which includes both residential and non-residential construction, posted gains in June. Twenty-eight states and D.C. added construction jobs compared to May, while 20 states lost jobs; two states reported no change. Texas recorded the largest monthly gain (+5,200), while California recorded the largest loss (-4,100). Overall, the construction sector added a net 11,000 jobs nationwide in June. In percentage terms, New Mexico recorded the strongest monthly increase (+3.2%), while Montana experienced the steepest decline (-1.6%).
Year-over-year, construction employment increased by 64,000 jobs nationwide, a 0.8% gain compared to June 2025. Texas led all states with an increase of 24,800 construction jobs, while California recorded the largest loss (-15,400). In percentage terms, Louisiana posted the strongest annual growth in construction employment (+7.7%), while New Hampshire experienced the largest decline (-2.5%).
State Unemployment Rate
The state unemployment rate is a key indicator of labor market conditions, measuring the share of the labor force that is actively seeking work but unable to find employment. Higher unemployment rates generally signal weaker economic conditions, while lower rates indicate tighter labor markets that may contribute to upward wage pressures.
South Dakota recorded the nation’s lowest unemployment rate at 2.0%, while D.C. posted the highest rate at 6.0%. The elevated unemployment rate in D.C. reflects significant federal workforce reductions and layoffs that occurred during 2025. North Dakota, Hawaii, Vermont, New Hampshire, and Nebraska also reported unemployment rates below 3.0%. Meanwhile, Michigan, Illinois, Nevada, California, Connecticut, Oregon, and Washington recorded unemployment rates of 5.0% or higher.