by Timothy McQuiston, Vermont Business Magazine Vermont initial weekly unemployment claims fell last week for the first time in three weeks. For the week ending April 18, 2026, the Vermont Department of Labor reported that there were 411 new claims, down 69 from the previous week and down 85 from last year at this time. New claims had leveled off at under 400 after the holiday season, other than one spike in February. Meanwhile, total claims were 3,679, down 14 from the week before and down 10 from last year at this time. Initial claims, which tend to be lowest in the summer, were 186 in September 2025.
Nationally, all three major stock indexes rebounded Friday after ping-ponging all week depending on the news from the Middle East, fluctuations regarding oil prices with the uncertain news regarding the reopening of the Strait of Hormuz, and finally a ceasefire between Israel and Lebanon that sent stocks mostly into positive territory on Friday. The Dow was down, but the S&P and Nasdaq had a strong finish to the week.
Still, the jobs report was weak and inflation persisted well above Fed targets, while GDP was revised down to 0.7%. The Fed, which met recently, left interest unchanged, as expected. But the poor employment numbers coupled with an erratic stock market had put pressure on the Fed to cut rates to stimulate the economy, which could still happen at their next meeting in May. However, it is more likely that the Fed will hold rates where they are as they continue to take a wait-and-see approach.
In Vermont for the weekly labor UI claims report, manufacturing accounted for 14% of the total, down 13 points from the previous week. Manufacturing overall has become a smaller part of the Vermont economy over the last 25 years and that trend appears to be continuing. The Service industry, which typically accounts for the most claims, last week reported 71% from the previous week, up 12 points. Construction was 4%, down 1 point.
In the week ending April 18, the US DOL advance figure for seasonally adjusted initial claims was 214,000, an increase of 6,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 207,000 to 208,000. The 4-week moving average was 210,750, an increase of 750 from the previous week's revised average. The previous week's average was revised up by 250 from 209,750 to 210,000.
The Vermont Unemployment Trust Fund is well capitalized. As of the most recent data, there was $30.4 million in the Trust Fund, up $2.5 million from the previous week (as claims are paid out on one side, employers are contributing to the fund on the other). The pre-pandemic Trust Fund balance on March 1, 2020, was $506.2 million.
Vermont’s unemployment rate down one-tenth to 2.6% in February, Labor Force shrinks
The Vermont Department of Labor reported that the seasonally adjusted statewide unemployment rate for February was 2.6 percent. This reflects a decrease of one-tenth of one percentage point from the prior month’s revised estimate. The comparable United States rate in February was 4.4 percent, an increase of one-tenth of one percentage point from the revised January estimate. Vermont is still tied for the third lowest rate in the US, with North Dakota. Hawaii and South Dakota are first (2.3%) and California and Delaware are tied for highest (5.4%)
See tables below.
The Vermont civilian labor force participation rate was 63.2 percent in February, a decrease of three-tenths of one percentage point from the prior month’s revised estimate.
A steep decline in total Employed in Vermont was offset by a steeper decline in the Labor Force (which is the denominator in these equations), thus producing a decline in the jobless rate. There was a small decrease in total Unemployed. Since the fall of 2024, Vermont has lost 11 percent of its federal workforce, or over 600 jobs (this does not include the US Postal Service).
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The seasonally adjusted Vermont data for February show the Vermont civilian labor force decreased by 1,383 from the prior month’s revised estimate (see Table 1). The number of employed persons decreased by 1,247 and the number of unemployed persons decreased by 136. None of the changes were statistically significant in the seasonally adjusted series.
The February unemployment rates for Vermont’s 14 counties ranged from 2.2 percent in Chittenden County to 5.9 percent in Orleans County (note: county unemployment rates are not seasonally adjusted – see Table 2). For comparison, the February unadjusted unemployment rate for Vermont was 2.9 percent, a decrease of three-tenths of one percentage point from the revised unadjusted January level and a decrease of one-tenth of one percentage point from a year ago.
Vermont tax revenues exceed targets in March
The General Fund, Transportation Fund and Education Fund all exceeded their respective monthly consensus cash flow target in the state’s March 2026 revenue results. The Personal Income, Gas, Meals & Rooms and Sales taxes all had a strong month.
The state’s three major funds were a combined $282.79 million, exceeding the $263.11 million monthly consensus target by $19.68 million, or 7.5%.
Total General Fund revenues for March totaled $193.45 million, $14.53 million, or 8.1%, above the $178.93 million monthly consensus cash flow target. All major components except the Corporate Income Tax exceeded their targets. The Personal Income and Meals & Rooms taxes continue to drive General Fund performance, with combined receipts $13.84 million above their year-to-date consensus target.
Revenues in the Transportation Fund exceeded the $26.28 million March target by $3.06 million, or 11.7%, yielding $29.34 million. The Gasoline and Diesel taxes were above target for the month and are now ahead of their cumulative targets for the fiscal year.
Monthly Education Fund revenues of $59.99 million were $2.09 million, or 3.6%, above the March cash flow target of $57.9 million. A combined $2.66 million in above-target receipts from the Sales & Use Tax, Investment Income, and the Meals & Rooms Tax offset a $0.57 million underperformance in the Motor Vehicle Purchase & Use Tax and Lottery Transfer. Year-to-date receipts are $5.56 million, or 0.9%, above their $591.7 million consensus target.
According to Secretary Clark: “The March revenues represent the first time this fiscal year that all three funds have simultaneously exceeded their monthly targets. Both the General and Education funds are ahead of their cumulative consensus target, while the Transportation Fund remains slightly more than one half of one percent below target.”
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Vermont Business Magazine