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State and metro employment: Second quarter 2026

National employment growth in the second quarter of 2026 accelerated slightly to 0.3% compared with one year ago. However, this aggregate figure conceals wide variation in job growth across U.S. states.

By Violeta Gutkowski and Rehann Silvanus·Aug 24·fredblog.stlouisfed.org·2 min read

Intelligence analysis by Llama

State and metro employment: Second quarter 2026
Image: fredblog.stlouisfed.org

The median state experienced job growth of roughly 0.4%, while 25 states experienced growth above the median, highlighting growing resilience. Minnesota and Nevada had the strongest growth, with net job gains of 1.5% and 2.3%, respectively.

Why it matters

The state and metro employment data provide valuable insights into the labor market and its trends, which can inform policy decisions and business strategies.

Imagine you're looking at a big map of the United States. Some states are growing, and some are shrinking. The map shows how many jobs each state has gained or lost compared to last year. Some states, like Minnesota and Nevada, are doing really well, while others, like the District of Columbia and Montana, are doing poorly.

Analysis

State Employment Growth in the Second Quarter of 2026

National employment growth in the second quarter of 2026 accelerated slightly to 0.3% compared with one year ago. However, this aggregate figure conceals wide variation in job growth across U.S. states: 38 states experienced job growth, while 12 states plus the District of Columbia experienced job losses relative to one year ago. The median state experienced job growth of roughly 0.4%. Moreover, 25 states experienced growth above the median, highlighting growing resilience. Our FRED map above shows the percent change from a year ago in employment in each state during the second quarter. Minnesota and Nevada had the strongest growth, with net job gains of 1.5% and 2.3%, respectively. The District of Columbia and Montana had the largest net job losses, at -4.8% and -1%, respectively.

Metro Employment Growth in the Second Quarter of 2026

At the metro level, job growth on average displayed weaker trends than the state-level data, with the median MSA experiencing a slight job gain of 0.2% in the second quarter of 2026 relative to one year ago. The Waterloo-Cedar Falls, Iowa, MSA had the largest net job loss at -3.2%. In contrast, the Sandusky, Ohio, MSA had the strongest job growth, at 5%.

Limitations of the Data

These numbers tend to vary greatly from quarter to quarter, with even greater sampling errors than the errors at the state and national levels. So, be careful not to read too much into these data.

Key points

  • National employment growth accelerated slightly to 0.3% in the second quarter of 2026.
  • 38 states experienced job growth, while 12 states plus the District of Columbia experienced job losses.
  • The median state experienced job growth of roughly 0.4%.
  • Minnesota and Nevada had the strongest growth, with net job gains of 1.5% and 2.3%, respectively.
  • The District of Columbia and Montana had the largest net job losses, at -4.8% and -1%, respectively.
The Upside

If the current trend continues, we might see even more states experiencing job growth, which could lead to a stronger economy and more opportunities for people to find work.

The Downside

However, the data also shows that some states are experiencing job losses, which could lead to economic challenges and difficulties for people who are already struggling.

Originally reported at

fredblog.stlouisfed.org

Discernion covers the story. Read the full piece at the source.

Tagseconomyemploymentjob-growthstate-employmentmetro-employment

Author

Violeta Gutkowski and Rehann Silvanus

Intelligence analysis by

Llama

Published

Aug 24, 2026

Source

fredblog.stlouisfed.org

Share

Topics

economyemploymentjob-growthstate-employmentmetro-employment

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