State labor markets showed mixed results in August, with nonfarm payroll employment increasing in a majority of states. At the same time, construction employment posted a net gain nationally, although employment trends varied across states. The unemployment rate also remained relatively low in several states, while D.C. continued to record the nation’s highest rate.
In August, nonfarm payroll employment increased in 35 states compared to July, while 15 states and the District of Columbia (D.C.) recorded declines. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment increased by 162,000 jobs in August, following a gain of 21,000 jobs in July. Through August, monthly payroll gains have averaged 80,000 jobs per month based on the current data vintage, reflecting upward revisions to employment gains in prior months.
On a month-over-month basis, employment gains were led by California (+39,400), followed by Florida (+21,800) and Wisconsin (+11,800). In contrast, the 15 states and D.C. that recorded losses collectively shed 61,100 jobs, with New York posting the largest decline (-23,500). In percentage terms, New Mexico recorded the strongest increase (+0.6%), while Maryland experienced the largest decrease (-0.3%) between July and August.
Over the 12 months ending in August, total nonfarm employment increased by 603,000 jobs nationwide, representing a 0.4% gain. Job gains ranged from 300 in Rhode Island to 159,400 in Texas. Collectively, 12 states and D.C. lost 130,400 jobs over the past 12 months, with Virginia recording the largest decline (-37,700).
In percentage terms, job growth ranged from 0.1% in Delaware and Rhode Island to 1.6% in New Mexico, South Carolina, and Louisiana. Iowa and New York reported no change over the past 12 months. Among states experiencing employment declines, losses ranged from 0.1% in Georgia, Kentucky, and Maine to 0.9% in Virginia and Montana. D.C., however, recorded a substantially larger decline of 3.6%.
Construction Employment
Construction employment 1—which includes both residential and non-residential construction, posted a net gain in August. Thirty-one states added construction jobs compared to July, while 16 states and D.C. lost jobs; three states reported no change. Ohio recorded the largest monthly gain (+4,600), while Colorado recorded the largest loss (-2,200). Overall, the construction sector added a net 22,000 jobs nationwide in August. In percentage terms, Mississippi recorded the strongest monthly increase (+2.6%), while Rhode Island experienced the steepest decline (-1.3%).
Year-over-year, construction employment increased by 120,000 jobs nationwide, a 1.5% gain from August 2025. Ohio led all states with an increase of 17,800 construction jobs, while California recorded the largest loss (-6,900). In percentage terms, Louisiana posted the strongest annual growth in construction employment (+12.7%), while New Hampshire experienced the largest decline (-3.7%).
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 5.7%. The elevated unemployment rate in D.C. reflects significant federal workforce reductions and layoffs that occurred during 2025. North Dakota, Vermont, Hawaii, New Hampshire, Nebraska, and Wyoming also reported unemployment rates of 3.0% or below. Meanwhile, Oregon, Connecticut, California, and Michigan recorded unemployment rates of 5.0% or higher.