📊 State Employment and Unemployment (Monthly) Report – September 2025

The State Employment and Unemployment (Monthly) report from the U.S. Bureau of Labor Statistics (BLS) provides a comprehensive snapshot of labor market conditions across all 50 states and the District of Columbia for September 2025. This report is crucial for understanding regional economic health, labor force dynamics, and employment trends, which are essential for policymakers, economists, and anyone interested in the U.S. economy.

Overview of the Report

The report draws on two main data sources:

  • Local Area Unemployment Statistics (LAUS): Household survey-based estimates of employment and unemployment by place of residence.
  • Current Employment Statistics (CES): Establishment survey-based estimates of nonfarm payroll employment by place of work and industry.

Both programs are federal-state collaborations, ensuring data reliability and comparability across states.

Key Findings from September 2025

1. Unemployment Rate Trends

    • 📈 National Unemployment Rate: The U.S. unemployment rate stood at 4.4% in September 2025, showing little change from the previous month but up by 0.3 percentage points compared to September 2024.
    • 📍 State-Level Changes:
      • 8 states experienced higher unemployment rates compared to August 2025.
      • 2 states saw lower unemployment rates.
      • 40 states and the District of Columbia had rates that were statistically unchanged.
    • 🕒 Year-over-Year Changes:
      • 18 states and the District of Columbia had higher unemployment rates than a year earlier.
      • 9 states saw decreases, with Indiana posting the largest drop (-0.7 percentage points).
      • 23 states had rates that were not significantly different from September 2024.

    2. Notable State Movements

    • 🔺 Largest Over-the-Month Increase: Oregon (+1.0 percentage point).
    • 🔻 Largest Over-the-Year Decrease: Indiana (-0.7 percentage point).
    • 🟢 Stable States: The majority of states (40 plus D.C.) saw no significant month-to-month change.

    3. Nonfarm Payroll Employment

    • 🏢 Monthly Changes:
      • Missouri added the most jobs (+18,300, or +0.6%).
      • New York lost the most jobs (-27,000, or -0.3%).
      • The remaining 48 states and D.C. saw little to no change.
    • 📅 Year-over-Year Changes:
      • 15 states experienced job growth.
      • 35 states and D.C. had essentially unchanged employment levels.
      • Top Job Gainers: Texas (+168,000), Pennsylvania (+99,900), North Carolina (+79,700).
      • Highest Percentage Growth: South Carolina (+2.3%), Idaho (+1.9%), New Mexico (+1.8%).

    4. Methodology and Reliability

    • 🧮 Estimation Methods: The report uses time-series models and benchmarking to national totals for accuracy. Substate estimates are adjusted to ensure consistency.
    • ⚠️ Caution on Aggregation: State data are not designed to be summed for a national total due to potential error accumulation.
    • 📏 Statistical Significance: Only changes determined to be statistically significant at the 90% confidence level are highlighted.

    5. Additional Context

    • 🏛️ Federal Government Shutdown Impact: Data collection and processing were delayed due to a lapse in federal appropriations in October and November 2025, but September data were unaffected.
    • 🗓️ Upcoming Releases: The next Metropolitan Area Employment and Unemployment report is scheduled for December 17, 2025, and the next State Employment and Unemployment report for January 7, 2026.

    6. Demographic and Labor Force Insights

    • 👥 Labor Force Definitions: The civilian labor force includes all employed and unemployed individuals aged 16 and over, excluding those in institutions or the military.
    • 🔍 Unemployment Definition: Unemployed individuals are those not working but actively seeking work in the past four weeks or on temporary layoff.

    Summary of Economic Implications

    • The U.S. labor market in September 2025 showed signs of stability, with most states experiencing little change in unemployment rates and payroll employment.
    • The national unemployment rate remains slightly elevated compared to the previous year, reflecting some softening in labor market conditions.
    • Job growth is concentrated in a handful of states, particularly in the South and West, while other regions remain flat.
    • The largest job gains are in populous states like Texas and Pennsylvania, indicating regional economic resilience.
    • The report’s methodology ensures robust, comparable data, but users should be cautious about aggregating state data for national analysis.

    💡 Summary:

    The September 2025 State Employment and Unemployment report shows a mostly stable labor market across the U.S., with minor increases in unemployment in some states and modest job growth in others. The national unemployment rate is slightly higher than a year ago, but most states saw little change. Job gains are concentrated in a few states, while the majority experienced stable employment levels. This report is a valuable tool for understanding regional economic trends and labor market health.

    References:

    State Employment and Unemployment (Monthly), US Bureau of Labor Statistics

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