State-Level Employment Situation: August 2025

The latest government state employment report paints a mixed picture of the job market. While a few states saw modest employment gains, most areas showed little to no progress. The pace of hiring appears to be slowing, raising concerns about the strength of the recovery.

Nonfarm payroll employment increased in 32 states in August compared to the previous month, while decreasing in 17 states and the District of Columbia. Montana reported no change. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 22,000 in August, falling short of expectations and following significant downward revisions to the previous two months’ figures including job losses in June. So far in 2025, monthly job growth has averaged 75,000, a significant slowdown compared to the 168,000 monthly average gain for 2024.

On a month-over-month basis, employment data was most favorable in Texas, which added 17,600 jobs. Pennsylvania came in second (+12,200), followed by Ohio (+9,900). Meanwhile, a total of 80,000 jobs were lost across 17 states and the District of Columbia, with New York reporting the steepest job losses at 16,100. In percentage terms, employment increased the highest in Utah at 0.5%, while the District of Columbia saw the largest decline at 0.7% between July and August.

Year-over-year ending in August, 1.5 million jobs have been added to the labor market, which is a 0.9% increase compared to the August 2024 level. The range of job gains spanned from 100 jobs in New Hampshire to 195,600 jobs in Texas. Four states and the District of Columbia lost a total of 23,600 jobs in the past 12 months, with Kansas reporting the steepest job losses at 10,000. In percentage terms, the range of job growth spanned 0.1% in Illinois to 3.1% in South Carolina. The range of job losses in Iowa, Maine, Kansas, and the District of Columbia spanned 0.1%-1.2%.

Construction Employment

Across the nation, construction sector jobs data ¹—which includes both residential and non-residential construction—showed that 19 states reported an increase in August compared to July, while 29 states lost construction sector jobs. The two remaining states and the District of Columbia reported no change on a month-over-month basis. Florida, with the highest increase, added 3,600 construction jobs, while Nevada, on the other end of the spectrum, lost 4,400 jobs. Overall, the construction industry lost a net 7,000 jobs in August compared to the previous month. In percentage terms, Mississippi reported the highest increase at 3.1% and Nevada reported the largest decline at 4.1%.

Year-over-year, construction sector jobs in the U.S. increased by 58,000, which is a 0.7% increase compared to the August 2024 level. Texas added 18,500 jobs, which was the largest gain of any state, while California lost 16,900 construction sector jobs. In percentage terms, New Mexico had the highest annual growth rate in the construction sector at 13.3%. During this period, Nevada reported the largest decline of 6.4%.

1. For this analysis, BLS combined employment totals for mining, logging, and construction are treated as construction employment for the District of Columbia, Delaware, and Hawaii.