West Virginia’s unemployment rate fell to 4.0% in August, its fifth consecutive monthly decline, even as employers reported 1,200 fewer payroll jobs than in July and 1,800 fewer than one year earlier.

The number of unemployed residents declined by 769 to 31,269, while the civilian labor force edged down by 372 to 772,230, according to the federal household survey released September 18. The estimated number of employed residents therefore increased by about 400 to 740,961.

The latest reading matches the 4.0% national unemployment rate only after rounding; the national rate was reported at 4.1%. West Virginia’s monthly series shows a steady decline from 4.4% in April to 4.0% in August. The state rate was 4.3% in August 2025.

That improvement is meaningful for people actively seeking work, but the household data also show a smaller labor market than a year ago. West Virginia’s labor force has declined by 9,639 people since August 2025, while the number classified as employed has fallen by roughly 7,100. That contraction can make sustained hiring more difficult for employers. A falling unemployment rate can coexist with fewer workers when people retire, relocate or stop actively searching for work.

The separate employer survey reinforces the caution. Total nonfarm payrolls declined from 718,300 in July to 717,100 in August, according to the industry estimates. Professional and business services lost about 800 jobs, trade, transportation and utilities lost roughly 500, construction fell by about 400, and manufacturing declined by approximately 300.

Several sectors offset part of those losses. Education and health services added about 500 jobs in August and employed 2,700 more people than one year earlier. Government payrolls increased by about 300 during the month, financial activities added approximately 200 and leisure and hospitality gained about 100.

Over the year, however, total payroll employment was down approximately 0.3%. Education and health services supplied the clearest growth, while leisure and hospitality employed about 700 fewer people, construction was down about 700, and manufacturing and government each had roughly 300 fewer jobs.

The household and establishment surveys measure different parts of the economy. Household estimates count West Virginia residents who are working or actively looking for work. Payroll estimates count jobs located at workplaces in the state and may count a person more than once if that worker holds multiple jobs. The preliminary figures are also subject to revision.

Across the country, unemployment rates declined in eight states and the District of Columbia and were statistically stable in the remaining states, while payroll employment rose significantly in only four, the BLS summary said. West Virginia’s monthly payroll change was not statistically significant. The next release, scheduled for October 20, will show whether the state can extend its unemployment decline while reversing the recent payroll contraction.