Nonfarm Payroll Employment by State: June 2026 Changes and Rankings

The U.S. Bureau of Labor Statistics (BLS) reported on July 21, 2026, that nonfarm payroll employment was essentially unchanged in most states in June 2026, with increases in only three states and a decrease in one. The national unemployment rate held at 4.2 percent. State-level data show wide variation, from California’s 18.1 million nonfarm jobs to a sharp year-over-year decline in the District of Columbia.

Key Numbers

• National unemployment rate: 4.2% in June 2026, little changed over the month and year.
• States with over-the-month job gains: 3 states; 1 state lost jobs; 46 states and D.C. were essentially unchanged.
• States with over-the-year job gains: 4 states; 1 state and D.C. lost jobs; 45 states essentially unchanged.
• Largest state total (available data): California, 18,144.5 thousand nonfarm jobs.
• Largest over-the-year decline: District of Columbia, -36.1 thousand jobs (-4.8%).
• Strongest over-the-year percentage gain among available states: Alaska, +1.2% (+3.9 thousand).
• Largest over-the-month decline among available states: Arkansas, -2.2 thousand (-0.2%).
• Colorado over-the-year gain: +28.6 thousand (+1.0%).

Explanation

Nonfarm payroll employment is one of the most closely watched measures of labor market health. It counts paid workers in nonagricultural establishments, including private businesses and government agencies. The BLS releases state-level estimates each month as part of the Current Employment Statistics program. The June 2026 figures are preliminary and seasonally adjusted, meaning they remove predictable seasonal patterns to reveal underlying trends.

In June 2026, the national labor market was broadly stable. The BLS reported that nonfarm payroll employment increased in only 3 states, decreased in 1 state, and was essentially unchanged in 46 states and the District of Columbia. Over the year, the pattern was similar: 4 states added jobs, 1 state and the District lost jobs, and 45 states were essentially unchanged. This stability at the national level masks important differences among states.

State-level changes reflect a mix of local industry composition, population growth, federal government presence, and other factors. The District of Columbia’s over-the-year decline of 4.8 percent is the most striking result in the available data, while several states, including Alaska, Colorado, and Alabama, posted solid percentage gains.

Definition

Nonfarm payroll employment measures the number of paid workers in nonagricultural establishments. It is based on a survey of employers rather than households. The measure excludes several categories of workers:

• Agricultural workers
• Self-employed persons
• Unpaid family workers
• Private household employees
• Military personnel

Because it is an establishment-based count, a person with multiple jobs may be counted more than once. The data are reported in thousands of jobs.

State Comparison

Among states with complete data in the BLS table, California had the largest total nonfarm employment in June 2026 at 18,144.5 thousand. Arizona ranked second among the complete rows at 3,283.2 thousand, followed by Colorado at 2,970.8 thousand. The smallest state total among complete rows was Alaska at 341.4 thousand. Florida’s May 2026 level was 10,022.2 thousand, but its June 2026 value was not fully shown in the available excerpt, so it is not included in the ranking table below.

The spread between the largest and smallest states is enormous: California’s job market is more than 50 times the size of Alaska’s. This reflects differences in population, industry mix, and economic scale.

National Comparison

Nationally, the unemployment rate was 4.2 percent in June 2026, little changed over both the month and the year. The BLS news release summarized the state employment situation as follows:

In June, nonfarm payroll employment increased in 3 states, decreased in 1, and was essentially unchanged in 46 states and the District of Columbia. Over the year, nonfarm payroll employment increased in 4 states, decreased in 1 state and the District, and was essentially unchanged in 45 states.

This pattern indicates a stable but uneven labor market. Most states did not experience statistically significant employment changes, but the few that did show both gains and losses.

Ranking Table

The table below ranks states with complete data in the BLS excerpt by total nonfarm payroll employment in June 2026. It is not a full national ranking because some state rows were truncated in the source table.

Year-over-Year Change

Year-over-year changes show how state job markets evolved between June 2025 and June 2026. Among the available states, the largest net gain was in California, which added 106.9 thousand jobs. The largest percentage gain was in Alaska at 1.2 percent, followed by Colorado at 1.0 percent and Alabama at 0.9 percent.

• Largest net gain: California, +106.9 thousand
• Largest percentage gain: Alaska, +1.2%
• Largest net decline: District of Columbia, -36.1 thousand
• Largest percentage decline: District of Columbia, -4.8%
• Other notable gains: Colorado +28.6 thousand (+1.0%), Arizona +23.6 thousand (+0.7%), Alabama +20.4 thousand (+0.9%)

The District of Columbia’s decline stands out sharply. Its nonfarm employment fell from 756.9 thousand in June 2025 to 720.8 thousand in June 2026, a loss of 36.1 thousand jobs.

Historical Data

The following table compares June 2025 and June 2026 nonfarm payroll employment for the states with complete data in the BLS excerpt. It provides a direct view of the 12-month change.

Methodology

The BLS produces state nonfarm payroll employment estimates through the Current Employment Statistics (CES) program, which surveys a sample of nonfarm establishments. The data are seasonally adjusted to remove predictable fluctuations caused by holidays, weather, and other seasonal factors. The June 2026 state estimates are preliminary and will be revised as more complete data become available.

State-level estimates are also subject to annual benchmarking, in which the BLS aligns sample-based estimates with more comprehensive unemployment insurance tax records. This process can revise previously published figures.

Limitations of the Data

• June 2026 figures are preliminary and may be revised in subsequent months.
• State estimates have sampling and modeling error, and small changes may not be statistically significant.
• Seasonal adjustment factors can change, altering month-to-month comparisons.
• The nonfarm payroll measure excludes agricultural, self-employed, and private household workers, so it does not capture all employment.
• The available source table is truncated, so the ranking and comparisons in this article cover only the states with complete data shown.

Why It Matters

Nonfarm payroll employment is a primary indicator of state economic health. It shows whether employers are adding or shedding jobs, which affects household incomes, consumer spending, and state tax revenues. Policymakers, businesses, and job seekers use these data to assess local labor market conditions and compare performance across states.

Differences in state job growth can signal regional economic shifts. A state with consistent job gains may attract workers and investment, while a state with declines may face budget pressures and out-migration.

Factors Behind the Trend

The BLS release does not attribute state-level employment changes to specific causes. However, state job growth often reflects a combination of industry mix, population growth, federal government employment, and seasonal patterns. The District of Columbia’s over-the-year decline of 4.8 percent is notable, but the data alone do not identify the sectors responsible. Similarly, Alaska’s 1.2 percent gain may reflect its small job base and resource-related industries, but the BLS does not provide a causal explanation in the state employment release.

Source & Data Date

Primary source: U.S. Bureau of Labor Statistics, State Employment and Unemployment (Monthly) news release for June 2026, published July 21, 2026. Supporting data tables include Change in total nonfarm employment by state, seasonally adjusted, and Employment by state, seasonally adjusted. The data cover June 2026 and are preliminary.