In May, the state labor market conditions were inconsistent, with payrolls expanding in numerous states and job losses concentrated in a smaller number of states and the District of Columbia (D.C.).
Although the performance of states varied significantly, construction employment also continued to increase nationwide.
In comparison to April, 38 states experienced an increase in nonfarm payroll employment in May, while 12 states and D.C. experienced a decline.
In May, the Bureau of Labor Statistics reported a 172,000 job increase in total U.S. nonfarm payroll employment, which followed a 179,000 job increase in April.
Texas (+17,800) was the state with the most employment gains on a month-over-month basis, followed by North Carolina (+17,400) and New York (+13,700).
Conversely, the 12 states and D.C. that sustained losses collectively eliminated 27,100 jobs, with Virginia experiencing the most significant decline (-8,000).
West Virginia experienced the most significant increase (+1.4%) in percentage terms, while Montana experienced the most significant decrease (-0.5%) between April and May.
The total nonfarm employment in the United States increased by 503,000 jobs in the 12 months ending in May, which is a 0.3% increase from May 2025.
The number of job gains varied from 100 in Colorado to 102,900 in California.
Over the past year, a total of 209,400 jobs were lost in 19 states and D.C., with Virginia experiencing the most significant decline (-52,200).
Job growth varied from 0.1% in Florida, Washington, and Missouri to 1.8% in Nevada in percentage terms.
No changes were reported in Colorado, Illinois, and Wisconsin over the past year.
Employment losses in Massachusetts, Vermont, New Jersey, Oklahoma, and Delaware were as low as 0.1%, while Virginia experienced a 1.2% decline.
Nevertheless, the decline in Washington, D.C. was significantly greater, at 5.3%.
Construction Employment
In May, there were improvements in construction employment 1, which encompasses both residential and non-residential construction.
In comparison to April, twenty-three states and D.C. increased the number of construction jobs, while 22 states experienced job losses.
Five states reported no change. The greatest monthly gain was recorded in Texas (+3,600), while the largest loss was in Massachusetts (-4,200).
A net 17,000 positions were created in the construction sector nationwide in May.
Idaho experienced the most significant monthly increase (+2.6%) in percentage terms, while Montana experienced the most severe decline (-4.9%).
Year-over-year, construction employment increased by 68,000 jobs nationwide, representing a 0.8% increase from May 2025.
Texas experienced the greatest increase in construction jobs among all states, with 18,700 positions added.
Conversely, California experienced the most significant decline (-13,100 positions). Wisconsin experienced the most significant annual growth in construction employment (+6.2%) in percentage terms, while New Mexico experienced the most significant decline (-3.1%).
Unemployment Rate by State
The state unemployment rate is a critical indicator of labor market conditions, as it quantifies the proportion of the labor force that is actively pursuing employment but is unable to secure it.
In general, higher unemployment rates are indicative of weakened economic conditions, while lower rates suggest tighter labor markets that may contribute to upward wage pressures.
South Dakota had the lowest unemployment rate in the country, at 2.1%, while D.C. had the highest rate, at 6.1%.
Significant federal workforce reductions and redundancies that transpired in 2025 are indicative of the elevated unemployment rate in Washington, D.C. Unemployment rates below 3.0% were also reported in North Dakota, Hawaii, and Vermont.
In the interim, Michigan, Connecticut, Delaware, Illinois, Washington, Oregon, Nevada, and California all experienced unemployment rates of 5.0% or higher.
The District of Columbia, Delaware, and Hawaii are analyzed as construction employment, with the BLS combined employment totals for mining, logging, and construction being considered as such.
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