Labor Market · August 24, 2026 · 2 min read

BLS Reported July Unemployment-Rate Declines in 10 States While State Payrolls Changed Little

Published August 24, 2026 • Updated August 24, 2026

The Bureau of Labor Statistics reported that unemployment rates fell in 10 states in July, while nonfarm payroll employment increased in Maryland, decreased in New Jersey, and was essentially unchanged in the other states and the District of Columbia.

CONFIRMED FACTS The U.S. Bureau of Labor Statistics’ August 21, 2026 State Employment and Unemployment release reported that July unemployment rates were lower in 10 states and stable in 40 states and the District of Columbia. The national unemployment rate was 4.1%, little changed both from June and from July 2025. BLS reported statistically significant July-to-July monthly unemployment-rate declines of 0.2 percentage point in Illinois, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, and Washington; Delaware, Florida, and North Dakota each declined 0.1 point. South Dakota had the lowest July state jobless rate, at 2.0%, while the District of Columbia had the highest, at 5.9%. The release reported that seasonally adjusted nonfarm payroll employment increased in Maryland by 11,700 jobs (0.4%) from June to July and decreased in New Jersey by 25,600 jobs (0.6%). Employment was essentially unchanged in the other 48 states and the District of Columbia. Over the year, BLS reported the largest state payroll gains in Texas (+165,600), California (+112,700), and North Carolina (+51,600). Virginia (-47,900) and the District of Columbia (-31,500) had the reported year-over-year payroll declines. ANALYSIS The release shows that a group of state unemployment rates moved down in July even as the national rate was little changed and most state payroll estimates did not show statistically significant monthly movement. These are different measures: the state unemployment estimates are based largely on household-survey data and refer to people by residence, while the payroll estimates are establishment-survey measures of jobs by work location. They should not be treated as interchangeable measures. UNKNOWNS AND LIMITS This release does not establish why state labor-market measures changed or forecast national employment, wages, inflation, or interest rates. BLS labels the state unemployment-rate changes and payroll estimates discussed here as preliminary where indicated, and notes that estimates will be revised as new information becomes available. The data use different surveys, concepts, and geographic bases, so a state’s unemployment-rate change cannot by itself be used to infer its payroll change. UPDATE LOG Reviewed August 24, 2026 using the Bureau of Labor Statistics’ primary August 21 release for July 2026 state employment and unemployment.

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U.S. Bureau of Labor Statistics — State Employment and Unemployment, July 2026 — Primary BLS release for July 2026 state unemployment-rate changes, state nonfarm payroll changes, preliminary status, and methodology distinctions.

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