Idaho Unemployment Holds Steady at 3.7% in February, Outperforming National Rate
Why It Matters
Idaho’s labor market continues to demonstrate resilience against a backdrop of rising unemployment nationally, offering workers and businesses in the Gem State a measure of stability. With nearly 37,000 Idahoans still counted among the unemployed, the headline numbers mask a mixed picture of sector-level gains and losses that could shape hiring decisions across the state in the months ahead.
What Happened
Idaho’s unemployment rate held at 3.7% for the second consecutive month in February, according to data released by the Idaho Department of Labor. The rate remains well below the national figure, which climbed from 4.3% to 4.4% between January and February.
While the unemployment rate stayed flat, Idaho’s nonfarm payroll employment slipped by 2,800 positions over the month, falling to a total of 875,900 jobs — a 0.3% over-the-month decline. The dip reflects seasonal patterns and broader softness in certain industries, though year-over-year trends remain comparatively healthy.
Across the country, the labor market showed signs of strain. The number of unemployed Americans rose by 203,000 to 7.6 million, while national nonfarm payroll employment shed 133,000 jobs, dropping to 158.5 million. Idaho’s ability to maintain its unemployment rate flat during this period underscores the state’s relatively strong economic footing.
By the Numbers
- 3.7% — Idaho’s unemployment rate in February, unchanged from January and below the national rate of 4.4%
- 971,186 — Idahoans employed in February, out of a labor force of just over 1 million
- 36,950 — Number of unemployed Idahoans in February
- 4,600 — Net nonfarm jobs added in Idaho over the past 12 months, a 0.5% year-over-year gain
- 62.7% — Idaho’s labor force participation rate, down 0.1 percentage point from the prior month
Sector Breakdown
The steepest month-over-month job losses in Idaho came from Administrative, Support and Waste Management Services, which fell 2.3%, followed by Arts, Entertainment and Recreation, down 2.1%. Federal Government employment dropped 0.7%, consistent with a broader national pattern of public sector contraction seen in recent months.
Not all sectors moved in the wrong direction. Wholesale Trade posted a 1.4% monthly gain, while Real Estate and Rental and Leasing grew 0.9%. Health Care and Social Assistance and Local Government each recorded modest gains of 0.2%.
Regionally, Idaho Falls saw the largest over-the-month nonfarm job decline among the state’s six Metropolitan Statistical Areas at 0.5% — a development that comes as the broader Idaho Falls area has faced economic headwinds. An Idaho Falls beef and bison processing plant recently closed abruptly, leaving 150 workers without jobs, adding to local labor market pressures. Boise and Twin Falls each declined 0.2%, while Coeur d’Alene, Lewiston and Pocatello held flat.
Year-over-year, Twin Falls led all metro areas with a 1.0% job gain, followed by Coeur d’Alene at 0.4% and Boise at 0.3%. Pocatello posted the steepest year-over-year decline at 2.4%.
Zoom Out
Idaho has consistently tracked below national unemployment levels since the sharp recovery that followed the COVID-19 pandemic, when the national rate spiked to nearly 15% in April 2020. Since mid-2022, the national rate has hovered in the 4% to 4.5% range — a band that Idaho has remained beneath throughout that stretch.
The state’s agricultural and rural economic sectors also face their own pressures this season. Recent curtailment orders affecting Butte County farmers were temporarily lifted, providing some relief to Idaho’s agricultural communities that underpin rural employment across the state.
Idaho’s free-market economy, relatively low tax burden, and business-friendly regulatory environment have helped the state attract employers and maintain job growth even as neighboring states and the nation at large contend with slower hiring and rising unemployment.
What’s Next
The Idaho Department of Labor is expected to release updated employment figures for March in the coming weeks. Analysts and employers will be watching to see whether the seasonal dip in February reverses course as spring hiring typically picks up across construction, agriculture, and tourism sectors. Federal workforce reductions at the national level could continue to apply downward pressure on Idaho’s federal employment numbers in subsequent monthly reports.
About the Author
