Hardware Retailing The Industry's Source for Insights and Information
February’s labor market data point to a significant pullback in employment, with job losses concentrated across a majority of states and smaller gains elsewhere, according to the National Association of Home Builders (NAHB).
In February, nonfarm payroll employment increased in 14 states compared to January, while 36 states recorded declines. The District of Columbia reported no change. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment fell by 133,000 in February, following a robust 160,000 job gain in January.
On a year-over-year basis ending in February, total nonfarm employment increased by 149,000 jobs nationwide, representing a 0.1% gain relative to February 2025.
Construction employment, which includes both residential and non-residential construction, showed job losses in February. Twenty-two states added construction jobs compared to January, while 27 states and the District of Columbia experienced declines; South Dakota reported no change. Year-over-year, construction employment increased by 37,000 jobs nationwide, a 0.4 percent gain compared to February 2025.
The state unemployment rate is a key economic indicator that reflects the health of local labor markets, measuring the percentage of the workforce actively seeking work but unable to find it. High unemployment signals a weakening state economy, while low unemployment suggests a tight labor market that may contribute to rising wage pressures.
