New Hampshire’s unemployment rate held at 2.8% in August, even as employers reported 1,500 fewer payroll jobs than in July and the state’s labor force shrank. The combination, shown in the latest federal data, points to a labor market that remains tight by national standards but is no longer expanding uniformly.
The civilian labor force declined by about 1,100 people in August, to 774,300, while employment measured through the household survey fell by roughly 600. The number of unemployed residents dropped by about 500, leaving the jobless rate unchanged. New Hampshire Employment Security’s state release likewise reported a preliminary 2.8% rate, unchanged from July.
The payroll survey told a weaker monthly story. Total nonfarm employment fell from 704,800 in July to 703,300 in August, according to the industry table. Trade, transportation and utilities lost about 600 jobs during the month, leisure and hospitality lost 500, information lost 300, and professional and business services lost 300. Construction declined by 200 jobs.
Several sectors moved in the opposite direction. Education and health services added about 200 jobs, manufacturing added 200, and financial activities added 100. Compared with August 2025, total payroll employment was still 0.2% higher. Professional and business services posted the strongest annual percentage gain among the major sectors, at 2.6%, while leisure and hospitality was up 2%. Construction and information were each down 3.7% over the year.
The mixed industry results matter because they separate the sectors still adding positions from those absorbing the monthly decline. Services tied to health and education continued to expand, while several consumer-facing and information-related categories weakened. That divergence can affect different regions and occupations unevenly even when the statewide unemployment rate appears stable.
The unemployment trend has nevertheless improved through the spring and summer. The state rate fell from 3.1% in April to 3% in May, 2.9% in June and 2.8% in July before holding there in August, according to the Federal Reserve Bank of St. Louis time series. The national unemployment rate was 4.1% in August, the Bureau of Labor Statistics said in its state summary.
The apparent tension between a steady unemployment rate and declining payrolls reflects two different statistical measures. The unemployment rate comes from a household-based model, while the payroll count is based largely on employer surveys. The agency’s methodology guide explains that the estimates cover different populations and can move differently from month to month.
For state policymakers and employers, the August figures suggest that worker availability remains limited even as hiring momentum softens. A smaller labor force can push the unemployment rate down or keep it stable without broad job creation. Because the August figures are preliminary and subject to revision, the next release will show whether the payroll decline was a one-month fluctuation or part of a more durable slowdown.
