Idaho employers added an estimated 2,800 nonfarm jobs in August even as the state’s labor force slipped further below 1 million people, according to figures released Friday by the Idaho Department of Labor. The combination shows payroll expansion continuing while fewer residents are participating in the labor market.
The seasonally adjusted unemployment rate held at 3.6% for a second month, below the 4.1% national rate. Idaho’s labor force fell by 486 people from July to 998,378, and the labor-force participation rate edged down one-tenth of a percentage point to 61.5%. Resident employment declined by 410 to 962,214, while the number of unemployed Idahoans fell by 76 to 36,164.
The longer comparison is more pronounced. Idaho’s labor force was 9,649 smaller than in August 2025, a 1% decline, while resident employment fell by 9,296. The jobless rate nevertheless matched its year-earlier 3.6% reading because employment and unemployment fell at similar rates. The Bureau of Labor Statistics household-survey table confirms that the labor force has declined in each of the latest reported months.
Payrolls move in the opposite direction
Idaho businesses reported 890,700 payroll jobs in August, up 0.3% from July and 0.9% from a year earlier. Construction added about 500 jobs over the month and manufacturing added roughly 700, according to the BLS state payroll table. Education and health services rose by about 100 jobs to 146,400, while leisure and hospitality increased by about 2,100 to 94,600.
The state agency’s more detailed industry breakdown identified accommodation and food services, arts and recreation, durable-goods manufacturing, wholesale trade, construction, and health care and social assistance among the strongest monthly gainers. Private education, natural resources, transportation and warehousing, federal government, real estate, and professional and business services recorded declines.
Growth was geographically uneven. Idaho Falls posted the strongest monthly gain among the state’s six metropolitan areas at 0.8%, followed by Twin Falls at 0.4% and Boise at 0.3%. Coeur d’Alene declined 0.3%, while Lewiston and Pocatello were unchanged. Over the year, Lewiston, Boise and Coeur d’Alene added jobs, while Pocatello, Idaho Falls and Twin Falls lost employment.
Two surveys, two views
The apparent tension between falling resident employment and rising payrolls reflects separate federal surveys. The household program measures people where they live, including self-employed workers. The establishment program counts jobs at workplaces, and a person with two payroll jobs can be counted twice. The BLS release explains that distinction and classifies most state payroll changes, including Idaho’s, as statistically unchanged for August.
For employers, the shrinking labor force may keep recruiting conditions tight even as payrolls grow. For state policymakers, the participation decline bears watching because it can hold down unemployment without signaling stronger hiring. Idaho is scheduled to release September data on October 16; August estimates are preliminary and may be revised.
