Vermont Unemployment Rate Holds Steady at 2.6 Percent

The Vermont Department of Labor reported that the state's seasonally adjusted unemployment rate remained stable at 2.6 percent in August 2026, unchanged from July. This figure is significantly lower than the national average of 4.1 percent, marking the third lowest unemployment rate in the country.

While the unemployment rate is stable and the civilian labor force participation rate held steady at 62.1 percent, the total labor force has decreased by more than 10,000 workers over the past year. Commissioner Kendal Smith attributed this decline to an increase in retirements, noting that "as more Vermonters retire, our labor force is getting smaller."

Industry-specific data showed mixed results, with a gain of 300 jobs in Accommodation and Food Services, contrasted by losses of 600 jobs in state government and 400 jobs in local government. Regional unemployment varied by county, ranging from 2.3 percent in Addison and Chittenden Counties to 3.3 percent in Bennington County.