Montana Hits 10th Straight Month Under 3% Unemployment, Extends Record Streak

HELENA — Montana’s unemployment rate held steady at 2.8% in July, marking an unprecedented 10th consecutive month below 3%, building on eight straight months reported in June, and extending the state’s record-breaking streak of economic stability to over four consecutive years of unemployment at or below 3.4%.

Governor Greg Gianforte announced the milestone Monday, emphasizing Montana’s continued national leadership in job market performance.

“For another consecutive month, Montana ranks in the top five states in the nation with the lowest unemployment rates – a testament to our historic job growth over the last four years,” Gianforte said. “We’ll continue to welcome historic business investment to the Treasure State and innovate through workforce development initiatives like 406 JOBS for Montanans to seek meaningful employment.”

Montana significantly outperformed the national unemployment rate of 4.2% in July, maintaining a 1.4 percentage point advantage that has positioned the state among the top five nationally for lowest unemployment.

Construction Drives Job Growth

Total employment increased slightly in July, with construction and retail trade industries each adding 500 or more jobs over the month. The construction gains represent a notable rebound for the sector, which has shown volatility in recent monthly reports.

Payroll jobs increased by 500 during the month despite losses in government employment. The number of unemployed Montanans remained below 16,000 for the fifth consecutive month, approaching the record low of just under 14,000 reached in 2023.

Geographic Disparities Persist

While Montana’s overall performance remains exceptional, employment conditions vary dramatically across the state’s 56 counties. Unemployment rates range from a low of 1.3% in Prairie County to a high of 5.8% in Big Horn County.

Rural counties dominated the lowest unemployment rankings, with Prairie, Carter, and Powder River counties all posting rates at or below 1.5%. These eastern Montana counties have benefited from agricultural and energy sector stability.

Major metropolitan areas showed mixed results. Gallatin County, home to Bozeman, recorded 2.1% unemployment, while Yellowstone County (Billings) came in at 2.9%. Missoula County matched the statewide rate at 2.6%.

Several counties showed concerning year-over-year employment declines. Gallatin County lost 3,437 jobs compared to the previous year, while Missoula County shed 909 positions. Conversely, Park County gained 314 jobs, and Yellowstone County added 412.

Reservation Employment Challenges

Unemployment rates on Montana’s seven reservations continued to exceed the statewide average, ranging from 3.9% on the Flathead Reservation to 11.8% on the Fort Belknap Reservation.

The Fort Belknap Reservation, despite recording the highest unemployment rate among reservations, showed improvement with a 1.6 percentage point decrease from the previous year. The Flathead Reservation, with the lowest reservation unemployment rate, added 180 jobs year-over-year.

Economic Context

The Consumer Price Index increased 0.2% in July, with shelter costs rising 0.2% as the primary factor driving monthly inflation. Over the past 12 months, overall inflation reached 2.7%, while core inflation rose 3.1%.

Montana’s sustained low unemployment comes as the state continues attracting business investment and population growth, though housing costs and workforce availability remain ongoing challenges in some regions.

The next labor market report, covering August 2025 data, will be released Friday, September 19th. With construction activity driving recent job growth and unemployment holding near historic lows, Montana’s economic trajectory continues to outpace national trends.

County unemployment rates and employment levels are not seasonally adjusted and should be compared to the unadjusted statewide unemployment rate of 2.7%. The unemployment rate carries a margin of error of plus or minus 0.5 percentage points at the 90% confidence level.