Vermont’s unemployment rate holds at 2.6% in June, employment falls

by Timothy McQuiston, Vermont Business Magazine Today, the Vermont Department of Labor released data on the Vermont economy for the time period covering June 2026. According to household data, the seasonally adjusted statewide unemployment rate for June was 2.6 percent. This reflects no change from the prior month’s revised estimate. The Labor Force and number of Vermonters employed both cratered again, down more than 1,000 each from May and down more than 10,000 each from last June. The jobless rate was unchanged as the loss of employment was offset by a reduction in the Labor Force.

The civilian labor force participation rate was 62.3 percent in June, a decrease of two-tenths of one percentage point from the prior month’s revised estimate.

The comparable United States rate in June was 4.2 percent, a decrease of one-tenth of one percentage point from the revised May estimate. Vermont has the third lowest rate in the US, with South Dakota lowest at 2.0%, and California, Connecticut, Oregon and Washington highest at 5.2%. 

See tables below.

"Vermont's summer hiring season is off to an impressive start, with the addition of an estimated 3,200 jobs to the economy according to the not-seasonally adjusted data collected from Vermont businesses," said Kendal Smith, Commissioner of the Vermont Department of Labor. "Construction, Leisure & Hospitality, and Local Government are creating many opportunities for Vermonters. The Department of Labor is helping connect employers with qualified candidates while supporting jobseekers at every stage—from finding seasonal employment to preparing for new careers through fall training programs. If you're hiring, looking for work, or thinking about a career change, our team is ready to help. Connect with a workforce specialist near you at https://labor.vermont.gov/workforce-development."

The seasonally adjusted Vermont data for June show the Vermont civilian labor force decreased by 1,085 from the prior month’s revised estimate (see Table 1). The number of employed persons decreased by 1,008 and the number of unemployed persons decreased by 77. The changes to the labor force and number of employed persons were statistically significant in the seasonally adjusted series.

The June unemployment rates for Vermont’s 14 counties ranged from 2.3 percent in Addison, Chittenden, and Orange Counties to 3.3 percent in Orleans County (note: county unemployment rates are not seasonally-adjusted – see Table 2). For comparison, the June unadjusted unemployment rate for Vermont was 2.5 percent, an increase of one-tenth of one percentage point from the revised unadjusted May level and a decrease of one-tenth of one percentage point from a year ago. 

Seasonally Adjusted (Table 3)

The seasonally adjusted data for June reported an increase of 300 jobs from the revised May data. There was an increase of 200 jobs between the preliminary and the revised May estimates due to the inclusion of more data. The seasonally adjusted over-the-month changes in June varied at the industry level. The industries with a notable increase were: State Government (+200 jobs or +1.1%) and Local Government (+300 jobs or +1.0%). The industries with a notable decrease were: Wholesale Trade (-200 jobs or -2.4%), Professional & Technical Services (-300 jobs or -1.7%), and Accommodation & Food Services (-300 jobs or -1.0%).

Not-Seasonally-Adjusted (Table 4)

The preliminary ‘not-seasonally-adjusted’ jobs estimates for June showed an increase of 3,200 jobs when compared to the revised May numbers. As with the seasonally adjusted data, this over-the-month change is from the revised May numbers which experienced a decrease of 200 jobs from the preliminary estimates. The broader economic picture can be seen by focusing on the over-the-year changes in this data series. As detailed in the preliminary not-seasonally-adjusted June data, Total Private industries increased by 500 jobs (+0.2%) over the year and Government (including public education) employment increased by 400 jobs (+0.7%) in the past year.

*** BLS note on CES series drops in 2026: https://www.bls.gov/sae/notices/2026/notice-of-publication-changes-with-the-release-of-June-2026-data.htm ***

The Unemployment and Jobs Report for July is scheduled to be released on Friday, August 21, 2026, at 10:00 a.m.

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Vermont Business Magazine