Montana’s Unemployment Rate Holds Steady at 2.8% for Second Straight Month

HELENA — Montana’s unemployment rate remained at 2.8% in May, continuing an extraordinary streak of economic stability that has positioned the state among the nation’s employment leaders, according to data released by Governor Greg Gianforte’s office.

The May figure extends Montana’s historic run of 47 consecutive months with unemployment at or below 3.4%, including eight straight months below the 3% threshold—a milestone that underscores the state’s robust job market.

“Our historic stretch of low unemployment continued in May, as we close in on four years of unemployment at or below 3.4%,” Gianforte said in a statement. “Our commitment to supporting job creators, our growing wages, and business-friendly environment continues to support the success of hardworking Montanans.”

National Leadership

Montana’s unemployment rate significantly outperformed the national average of 4.2% in May, maintaining a 1.4 percentage point advantage. The state ranks in the top five nationally for lowest unemployment rates, reflecting sustained economic momentum across multiple sectors.

Employment gains were modest but positive in May, with payroll jobs growing by 2,000, primarily driven by expansion in the construction industry. This represents a notable rebound for the sector, which lost 1,020 jobs in April according to previous state reports. Total employment, which includes payroll, agricultural, and self-employed workers, saw a slight decrease during the month.

Record Territory

The number of unemployed Montanans remained below 16,000 for the third consecutive month, approaching the record low of just under 14,000 reached in 2023. This sustained low level of joblessness demonstrates the durability of Montana’s economic recovery.

Inflation remained relatively contained, with the Consumer Price Index rising just 0.1% in May. Over the past 12 months, overall inflation reached 2.4%, while core inflation—excluding food and energy—increased 2.8%. Housing costs, which rose 0.3% in May, were the primary driver of monthly price increases.

County-by-County Breakdown

Employment conditions varied significantly across Montana’s 56 counties, with unemployment rates ranging from a low of 1.5% in Treasure County to 7.8% in Madison County. The unadjusted statewide rate of 2.7% provides context for county-level comparisons.

Rural counties dominated the lowest unemployment rankings, with Treasure, Carter, and Prairie counties each posting rates at or below 1.6%. Meanwhile, major metropolitan areas showed mixed results—Gallatin County (Bozeman) and Missoula County both recorded 2.5% unemployment, while Yellowstone County (Billings) came in at 2.6%.

Notable year-over-year employment changes included significant job losses in Gallatin County (-4,119) and modest gains in counties like Beaverhead (+49) and Hill (+40).

Reservation Employment

Unemployment rates on Montana’s seven reservations ranged from 3.7% on the Flathead Reservation to 9.9% on the Fort Belknap Reservation. All reservation unemployment rates exceeded the statewide average, with the Flathead Reservation showing the strongest performance and year-over-year improvement.

The Fort Belknap Reservation, despite having the highest unemployment rate, showed improvement with a 1.3 percentage point decrease from the previous year.

Looking Ahead

The next labor market report, covering June 2025 data, is scheduled for release on July 18th. With construction activity driving recent job growth and unemployment holding near historic lows, Montana’s economic trajectory continues to outpace national trends.

State officials emphasized that these seasonally-adjusted figures remove regular monthly patterns, making underlying economic trends more visible. The unemployment rate carries a margin of error of plus or minus 0.5 percentage points at the 90% confidence level.