August State Employment Statistics Largely Unchanged

There wasn’t anything particularly notable in the August 2025 state employment report. The BLS reported on Friday that state unemployment rates were largely stable, with rates remaining unchanged in 45 states m/m. South Dakota enjoyed the lowest unemployment rate in August at 1.9%, while the District of Columbia had the highest rate at 6%, followed by California at 5.5%.


The story was much the same on the employment front, with nonfarm payrolls unchanged m/m in 49 states. Utah saw the largest m/m percentage increase in payrolls at 0.5%, driven in large measure by gains in government employment, while the District of Columbia experienced the largest percentage decrease at (0.7%). This drop was principally the result of declines in government, education, and business services payrolls. On a y/y basis, 20 states reported gains in payrolls while employment levels in 30 states were essentially unchanged. South Carolina saw the largest y/y percentage increase at 3.1% with the business services, leisure and hospitality, and education and health sectors accounting for the bulk of the gains.


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