Vermont’s unemployment rate holds at 2.6 percent in May

by Timothy McQuiston, Vermont Business Magazine Today, the Vermont Department of Labor released the seasonally adjusted statewide unemployment rate for May of 2.6%. This reflects no change from the prior month’s revised estimate. However, the Labor Force fell steeply again and has now lost almost 10,000 workers from a year ago. The civilian labor force participation rate was 62.5% in May, a decrease of two-tenths of one percentage point from the prior month’s revised estimate.

The comparable United States rate in May was 4.3%, no change from the revised April estimate. Vermont has the fourth lowest rate in the nation. The Labor Force is the denominator in the equation to determine the UI rate. South Dakota continues to have the lowest at 2.1%, while California has the highest at 5.3%.

“Though unemployment remains low, the big story continues to be the shrinking labor force,” said Kendal Smith, Commissioner of the Vermont Department of Labor. “But this also means there has never been a better time to start a career here. To the high school and college graduates, we need your talent, innovation, and energy in every corner of our economy and communities. Vermont offers something increasingly rare: a chance to make an impact from day one, work closely with mentors, and to see the results of your efforts firsthand. With many experienced workers nearing retirement, opportunities for advancement and leadership will continue to expand across the state. If you need help figuring out what’s next, writing a resume, identifying training opportunities, and more, the Vermont Department of Labor Regional Job Centers are here to help. To find a local office near you, visit https://labor.vermont.gov/workforce-development to be connected with a specialist, or view jobs now on https://www.vermontjoblink.com/.”

The seasonally adjusted Vermont data for May show the Vermont civilian labor force decreased by 1,233 from the prior month’s revised estimate (see Table 1). The number of employed persons decreased by 1,217 and the number of unemployed persons decreased by 16. The changes to the labor force and number of employed persons were statistically significant in the seasonally adjusted series.

The May unemployment rates for Vermont’s 14 counties ranged from 2.1 percent in Addison and Chittenden Counties to 3.3 percent in Orleans County (note: county unemployment rates are not seasonally-adjusted – see Table 2). For comparison, the May unadjusted unemployment rate for Vermont was 2.4 percent, a decrease of four-tenths of one percentage point from the revised unadjusted April level and an increase of one-tenth of one percentage point from a year ago.

Seasonally-Adjusted (Table 3)

The seasonally adjusted data for May reported a decrease of 700 jobs from the revised April data. There was an increase of 500 jobs between the preliminary and the revised April estimates due to the inclusion of more data. The seasonally adjusted over-the-month changes in May varied at the industry level. The industries with a notable increase were: Transportation, Warehousing, & Utilities (+200 jobs or +2.5%) and Other Services (+200 jobs or +2.1%). The industries with a notable decrease were: State Government (-300 jobs or -1.6%) and Private Educational Services (-200 jobs or -1.6%).

Not-Seasonally-Adjusted (Table 4)

The preliminary ‘not-seasonally-adjusted’ jobs estimates for May showed a decrease of 800 jobs when compared to the revised April numbers. As with the seasonally adjusted data, this over-the-month change is from the revised April numbers which experienced an increase of 500 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 May data, Total Private industries increased by 1,000 jobs (+0.4%) over the year and Government (including public education) employment decreased by 700 jobs (-1.2%) 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-May-2026-data.htm ***

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

Last Modified Date: June 23, 2026

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Vermont Business Magazine