by Timothy McQuiston, Vermont Business Magazine Vermont weekly unemployment claims for the week ending May 3, 2025, fell sharply after they spiked to 778, their highest level since just after Christmas. An earlier spike at the beginning of March carried them over 600. New claims this week were 380, down 398 claims from the week before and are 60 fewer from last year. The end of the winter tourism season tends to increase claims, just as they do after holidays. Claims, which are lowest in the summer, were 181 at the end of September 2024.
In Vermont for the weekly report, the Service industry accounted for the most claims last week with 67%, up 14 points. Construction held at 2%, as that industry ramps up. Manufacturing accounted for 19% of claims, up 7 points.
For the week, Vermont total unemployment insurance claims were 3,675 (down 131 for the week and up 666 from this time last year).
The Vermont Unemployment Trust Fund is well capitalized. As of the most recent data, there was $294.9 million in the Trust Fund (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.
In the week ending May 3, the advance figure for US seasonally adjusted initial claims was 228,000, a decrease of 13,000 from the previous week's unrevised level of 241,000. The 4-week moving average was 227,000, an increase of 1,000 from the previous week's unrevised average of 226,000.
Meanwhile, total US Total nonfarm payroll employment increased by 177,000 in April, and the unemployment rate was unchanged at 4.2 percent. Employment continued to trend up in health care, transportation and warehousing, financial activities, and social assistance. Federal government employment declined.
Compensation costs increased 0.9 percent for civilian workers, seasonally adjusted, from December 2024 to March 2025. Over the year, total compensation rose 3.6 percent, wages and salaries rose 3.5 percent, and benefit costs rose 3.8 percent.
In March, the Consumer Price Index for All Urban Consumers fell 0.1 percent, seasonally adjusted, and rose 2.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.1 percent in March (SA); up 2.8 percent over the year (NSA).
The stock market continues to bounce around with good and bad economic news, along with profit-taking, resulting in the major market indices bouncing around. Friday's report saw markets retreat somewhat in waiting for updates on trade talks with China, ending the week about where they started.
The S&P, which most closely tracks the overall economy, has climbed over 5,500 (peaked 6,144 in February 2025), as the DOW, which peaked at over 45,000 in December, is up for the week and is now back over 41,000, while the volatile NASDAQ, which also peaked at over 20,000 in December, is near 18,000.
March Unemployment Rate Unchanged
The Vermont Department of Labor has reported that the seasonally adjusted statewide unemployment rate for March was 2.6 percent. This reflects no change from the prior month’s revised estimate. February’s revised estimate decreased by one-tenth of one percentage point from the preliminary estimate. The comparable United States rate in March was 4.2 percent, an increase of one-tenth of one percentage point from the revised February estimate.
Vermont continues to have the second lowest jobless rate in the nation, along with North Dakota and behind South Dakota (1.8%). Nevada has the highest rate at 5.7%.
The civilian labor force participation rate in Vermont was 65.3 percent in March, a decrease of one-tenth of one percentage point from the prior month’s revised estimate. The US average is 62.4%, according to the U.S. Bureau of Labor Statistics.
Michael Harrington, Vermont Labor Commissioner, said: “An estimated 900 jobs were added to the Vermont economy in March. Despite this growth, there are still an estimated 17,000 open jobs across the state. April 30th marks National Apprenticeship Day. Throughout the week, the Vermont Department of Labor will celebrate the importance of Registered Apprenticeships by highlighting a number of different efforts and activities that support Registered Apprenticeships. As one of the most effective pathways to a rewarding career, Registered Apprenticeships offer hands-on training and guaranteed employment upon completion. With the support of an employer sponsor, nearly any occupation can benefit from the apprenticeship model. To learn more about Registered Apprenticeships, employers and career seekers are encouraged to visit: https://labor.vermont.gov/workforce-development/apprenticeship.”
Harrington announced earlier this month that he is stepping down as commissioner in July.
The seasonally adjusted Vermont data for March show the Vermont civilian labor force decreased by 927 from the prior month’s revised estimate (see Table 1). The number of employed persons decreased by 1,051 and the number of unemployed persons increased by 124. The change to the number of employed was statistically significant in the seasonally adjusted series.
The March unemployment rates for Vermont’s 14 counties ranged from 2.1 percent in Chittenden County to 5.7 percent in Orleans County (note: county unemployment rates are not seasonally adjusted – see Table 2). For comparison, the March unadjusted unemployment rate for Vermont was 2.8 percent, a decrease of two-tenths of one percentage point from the revised unadjusted February level and an increase of seven-tenths of one percentage point from a year ago.
The seasonally adjusted data for March reported an increase of 900 jobs from the revised February data. There was an increase of 100 jobs between the preliminary and the revised February estimates due to the inclusion of more data. The seasonally adjusted over-the-month changes in March varied at the industry level. The industry with a notable increase was Administrative & Waste Services (+500 jobs or +3.7%). The industry with a notable decrease was Other Services (-200 jobs or -1.9%).
4.25.2025. Vermont Department of Labor
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