Helena, Montana – Montana’s labor market remained relatively strong in May as the state’s unemployment rate edged lower, continuing a lengthy period of low joblessness that has become a key focus of Governor Greg Gianforte’s economic agenda.
Governor Gianforte announced that Montana’s seasonally adjusted unemployment rate declined to 3.4 percent in May, placing it well below the national unemployment rate of 4.3 percent. While both employment and labor force participation saw slight declines during the month, the number of unemployed Montanans fell at a faster pace, helping drive the unemployment rate downward.
“Since taking office, we’ve been focused on unleashing Montana’s economy to support business owners who create good-paying jobs, strengthen our workforce, and reduce barriers to employment,” Gov. Gianforte said. “As we implement our 406 JOBS initiative, we continue our historic stretch of low unemployment while ensuring Montanans who are able to work have a pathway to a meaningful career.”
According to state labor data, unemployment dropped by 700 people during May, while total employment declined by approximately 200 jobs. Payroll employment fell by 2,600 positions over the month, with the largest losses occurring in the construction sector and the accommodation and food service industry.
Despite those declines, Montana continued to post a lower unemployment rate than the national average, reflecting what state officials describe as a resilient labor market.
Workforce development remains a priority
State leaders emphasized that maintaining low unemployment alone is not enough. Efforts are continuing to connect more residents with jobs through workforce training programs, apprenticeships, and other employment initiatives.
“While today’s numbers are encouraging, we know many Montanans are still working to find their footing in the job market,” said Sarah Swanson, Commissioner of Labor and Industry. “That’s why the Department of Labor and Industry, along with Governor Gianforte, is continuing to expand workforce development resources from job training to registered apprenticeships so that economic progress reaches workers in every part of the state.”
The governor’s administration has highlighted the 406 JOBS initiative as a key strategy to help employers find workers while providing career opportunities for Montanans seeking stable employment.
Inflation continues to affect consumers
While employment figures showed positive signs, inflation remained a concern for households.
The Consumer Price Index for All Urban Consumers increased 0.5 percent on a seasonally adjusted basis during May. Over the previous twelve months, overall prices rose 4.2 percent before seasonal adjustments.
Energy prices were a major factor behind the increase. The energy index climbed 3.9 percent in May and accounted for more than 60 percent of the monthly increase in consumer prices. Core inflation, which excludes food and energy costs, increased 2.9 percent over the past year.
The figures suggest that while the labor market remains relatively healthy, many consumers are still facing higher costs for goods and services.
County unemployment rates vary across Montana
Although the statewide seasonally adjusted unemployment rate stood at 3.4 percent, local conditions varied considerably across Montana’s 56 counties. County figures are not seasonally adjusted and are compared to the state’s unadjusted unemployment rate of 2.9 percent.
Prairie County recorded the state’s lowest unemployment rate at 1.6 percent, followed by Carter County and Powder River County at 1.7 percent. Daniels County reported 1.8 percent, while Garfield, Liberty, and Sheridan counties each posted rates of 2 percent.
Among Montana’s larger population centers, Gallatin County reported an unemployment rate of 2.6 percent with more than 76,000 employed residents. Missoula County also stood at 2.6 percent, while Yellowstone County posted 2.8 percent. Lewis and Clark County recorded 2.7 percent, Flathead County came in at 3 percent, and Silver Bow County registered 3.4 percent.
At the opposite end of the rankings, Madison County had the highest unemployment rate in the state at 7.7 percent. Big Horn County followed at 5.7 percent, Lincoln County reported 5.6 percent, and Granite County stood at 5.2 percent.
Reservation unemployment remains higher
Unemployment rates on Montana’s reservations remained significantly higher than the statewide average.
The Flathead Reservation recorded the lowest reservation unemployment rate at 3.9 percent. Fort Peck stood at 5.1 percent, while Blackfeet reported 6 percent.
Higher unemployment levels were seen on Rocky Boy’s Reservation at 8 percent, Northern Cheyenne at 8.9 percent, and Crow Reservation at 9.2 percent. Fort Belknap had the highest reservation unemployment rate at 11.6 percent.
State labor officials noted that reservation unemployment figures overlap with county data because residents living on reservations are counted in both sets of statistics.
The next Labor Market Information report, which will include employment data for June 2026, is scheduled to be released on July 21. Until then, state leaders say they will continue focusing on workforce development programs and employment opportunities aimed at keeping Montana’s labor market among the strongest in the nation.
