Montana Employment Declined While Labor Force Peaked in 2025
The state saw its first job losses in five years, even as a record number of residents joined the workforce.
Updated on Sept. 23, 2026 in Employment
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Montana saw its labor force reach a record 577,800 people in 2025, yet the state experienced its first decline in total employment since 2020. This shift resulted in a net loss of 1,400 jobs across the state throughout the year.
Why it matters
Rising labor productivity, which increased by 3% in 2025, allowed businesses to implement automation and reduce staff requirements. These losses were further compounded by downturns in key sectors like manufacturing, mining, and tourism.
While the labor force grew by 0.1% to 577,800, the state lost 1,400 jobs in 2025. Workers who remained employed saw an average annual wage of $62,920.
The players
Logan Health
A healthcare provider that merged with Billings Clinic in 2023, contributing to healthcare sector job growth.
Billings Clinic
A major regional healthcare system that completed a merger in 2023 to consolidate services.
The details
Businesses responded to higher productivity demands by implementing labor-saving technologies, which effectively reduced overall staffing needs. Significant job declines occurred in mining, where employment dropped by 6.9%, and in the state and federal workforce, which decreased by 2.6%. Despite these losses, the healthcare sector proved resilient, adding more than 1,200 jobs following major industry consolidations.
Timeline
2020: Montana last experienced an employment decline.
2025: The Montana labor force reached a record high of 577,800.
August 2026: The state unemployment rate reached 3.2%.
Money Landscape
The 2025 employment decline marks a notable shift following the economic recovery that began after the 2020 employment contraction. This cycle reflects a broader transition as businesses prioritize automation and capital investment over headcount expansion.
Residents should review their local industry stability, particularly if employed in manufacturing or mining, where automation and sector-specific downturns are impacting job availability. Consult with a professional to evaluate how regional economic shifts might affect your long-term career planning.
The takeaway
The growth of the labor force alongside falling employment suggests that many residents are seeking work in an increasingly automated economy. Keep an eye on local productivity reports to understand which industries are shifting toward technology-driven staffing models.
Further reading
Learn more about local job trends in the Employment section.
Source note: This article includes information reported by Flathead Beacon.
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