North Dakota’s unemployment rate held at 2.2% in August, the second-lowest rate in the country, while employers added an estimated 800 jobs during the month. The state’s jobless rate was unchanged from July and down from 2.6% a year earlier, according to the state employment report released Friday by the U.S. Bureau of Labor Statistics. Only South Dakota, at 2.0%, posted a lower rate.
The headline rate masks a continued contraction in the pool of workers. North Dakota’s seasonally adjusted labor force fell to 430,514 in August from 431,411 in July and 431,457 in August 2025. Employment measured through the household survey declined by about 770 people over the month, while the number counted as unemployed slipped by 126 to 9,502. Those estimates appear in the BLS state labor-force table, which measures people by where they live.
That distinction matters because the separate employer survey moved in the other direction. Nonfarm payrolls rose to 448,300 in August from 447,500 in July, a gain of 800 jobs, and were 2,200 higher than a year earlier. The change was not statistically significant; nationally, BLS found payroll growth in only four states, with employment essentially unchanged in North Dakota and 45 other states. The agency’s industry payroll table also shows that North Dakota’s monthly increase was spread across several sectors rather than driven by one large move.
Services grow while trade and professional jobs lag
The state’s BLS economy dashboard shows leisure and hospitality employment at 42,000 in August, up 2.9% from a year earlier, and education and health services at 73,200, up 1.9%. Construction employment reached 31,200, 1.6% above August 2025, while mining and logging stood at 17,100, up 0.6%. Manufacturing added about 200 jobs during August and was 0.7% higher than a year earlier.
Other parts of the economy remained softer. Trade, transportation and utilities employed 91,800 people, down 1.7% over the year. Professional and business services also fell 1.7%, to 33,700, while financial activities were down 0.8%. Government employment declined by about 200 over the month but remained 0.6% above its August 2025 level.
What the figures mean
For employers, a 2.2% unemployment rate continues to signal a tight hiring environment, but the shrinking labor force means the rate should not be read as evidence that every part of the economy is expanding. The household survey and employer survey answer different questions and can diverge month to month: one tracks residents, while the other counts jobs located at establishments. August’s combination—fewer people in the labor force but modestly more payroll positions—shows why both measures are needed.
The August figures are preliminary and subject to revision. BLS is scheduled to release September state data on October 20, when North Dakota’s latest labor-force and payroll estimates will be updated.
