Vermont’s unemployment rate down one-tenth to 2.6% in February, Labor Force shrinks

by Timothy McQuiston, Vermont Business Magazine The Vermont Department of Labor reported today, according to household data, 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).

“The February 2026 data continue to underscore a concerning decline in Vermont’s labor force and reinforce the need for an all-hands-on-deck approach to retain and attract residents. Over the past year, the labor force has decreased by more than 7,800 people—a 2.2% drop—driven largely by retirements and a lack of new entrants into the workforce. As we continue to receive first-quarter data, March figures will be released in two weeks, on May 6th. While they may show modest improvement, ongoing conversations with businesses make clear that hiring challenges persist. 

"One important tool available now to expand opportunities for workers and support business growth is Registered Apprenticeship. These programs offer low- or no-cost training that leads directly to employment in high-demand, well-paying fields, while helping employers build and retain their workforce. National Apprenticeship Week 2026 begins next week—follow along at National Apprenticeship Week.” 

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.

Seasonally Adjusted (Table 3)

The seasonally adjusted data for February reported a decrease of 100 jobs from the revised January data. There was an increase of 200 jobs between the preliminary and the revised January estimates due to the inclusion of more data. The seasonally adjusted over-the-month changes in February varied at the industry level. The industry with a notable increase was State Government (+200 jobs or +1.0%). The industries with a notable decrease were: Construction (-400 jobs or -2.4%) and Private Educational Services (-200 jobs or -1.6%).

Not-Seasonally-Adjusted (Table 4)

The preliminary ‘not-seasonally-adjusted’ jobs estimates for February showed an increase of 2,200 jobs when compared to the revised January numbers. As with the seasonally adjusted data, this over-the-month change is from the revised January 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 February data, Total Private industries decreased by 1,400 jobs (-0.5%) over the year and Government (including public education) employment decreased by 100 jobs (-0.2%) 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-February-2026-data.htm ***

The Unemployment and Jobs Report for March is scheduled to be released on Wednesday, May 6, 2026, at 10:00 a.m.

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Vermont Business Magazine