Idaho unemployment holds at 3.6% in April as labor force shrinks

Unemployment rate unchanged

Idaho's seasonally adjusted unemployment rate did not change between March and April, remaining at 3.6%, the Idaho Department of Labor reported May 22.

Idaho's 3.6% unemployment rate is lower than the national average of 4.3%. Idaho's 3.6% unemployment rate for April 2026 is the same as this time last year, according to the Labor Department.

The April figure marks the second consecutive month at 3.6%. Idaho's seasonally adjusted unemployment rate decreased between February and March, from 3.7% to 3.6%, the Idaho Department of Labor said in a May 4 release.

Seasonally adjusted unemployment rates are modified to account for regular changes in employment throughout the year, such as the holiday season, KMVT reported.

Labor force participation drops

April's labor force decreased by 2,350 (-0.2%) people to 1,003,496 while the labor force participation rate – the percentage of people 16 years or older who are either employed or looking for work – decreased by 0.2 percentage points between March and April, down to 62.2%.

The decline continues a trend that began earlier in the year. March's labor force decreased by 2,286 (-0.2%) people to 1,005,848 while the labor force participation rate decreased by 0.3 percentage points between February and March, down to 62.4%.

Another driving factor is the national trend for a decrease in labor force participation since November 2025, according to Idaho Labor Market Information.

Total employment decreased by 2,290 (-0.2%) to 966,979 and unemployment decreased by 60 (-0.2%) to 36,517 in April.

Year-over-year comparisons show modest changes. The labor force declined by 3,059, as the number of employed Idahoans decreased by 3,169 compared to April 2025. The number of unemployed Idahoans increased by 110 year over year.

Regional job growth varies

Five of Idaho's six Metropolitan Statistical Areas had over-the-month nonfarm job gains in April.

Coeur d'Alene saw the largest increase at 0.5%, followed by Lewiston at 0.3%, Boise, Idaho Falls and Pocatello were all up by 0.2%. There was no change in Twin Falls, KXLY reported.

The Coeur d'Alene Press reported similar findings. Each of Idaho's Metropolitan Statistical Areas (MSAs) saw nonfarm job growth in March, with Pocatello seeing the largest increase at 1.3%.

Year-over-year nonfarm job growth shows a different pattern. As for year-over-year nonfarm job growth, the Idaho MSAs with the most growth were Lewiston at 1.4%, Coeur d'Alene at 1.3%, Twin Falls at 1.2% and Boise at 1%. Conversely, Pocatello decreased by 1.5% and Idaho Falls decreased 0.6% in the same period, the Coeur d'Alene Press said.

Nonfarm employment trends

Non-farm jobs increased by 0.4%, with a total of 882,000 in April, KTVB reported.

March saw similar gains. Idaho's nonfarm jobs had a net increase of 2,100 (0.2%) for a total of 877,800 in March.

Industry sectors with the greatest over-the-month gains included Administrative, Support and Waste Management Services (3.0%); Private Educational Services (1.7%); Other Services (1.0%); Construction (0.9%); Transportation, Warehousing and Utilities (0.9%); Federal Government (0.7%) and Retail Trade in March.

Year-over-year data for March shows mixed results across sectors. Most major industry sectors gained jobs except Arts, Entertainment and Recreation (-14.4%); Federal Government (-6.2%); Information (-5.6%); Wholesale Trade (-3.0%); Nondurable Goods Manufacturing (-2.8%); State Government (-1.9%) and Accommodation and Food Services (-1.4%).

Nationally, the unemployment rate decreased between February and March, down from 4.4% to 4.3%. The number of unemployed decreased by 332,000 (-4.4%) to 7.2 million.

Total nonfarm payroll employment increased by 178,000 (0.1%) to 158.6 million nationally in March.

Idaho's unemployment rate has remained below the national average throughout 2026. The state's 3.6% rate in April compares favorably to the 4.3% national rate.

What the data measures

The Idaho Department of Labor relies on multiple data sources for its monthly reports. The data used in LAUS estimates comes from sources such as the Current Population Survey (CPS) performed by the United States Census Bureau, Current Employment Statistics (CES), the Quarterly Census of Employment and Wages (QCEW) and Unemployment Insurance claim numbers.

Along with allowing local stakeholders and decision makers to see changes to labor force participation and the unemployment rate, LAUS information is used by numerous institutions both inside and outside of the state. Examples include using county labor force levels when setting utility rates, the extension of unemployment insurance benefits should the state reach a high unemployment rate threshold, and the allocation of federal employment and training resources to Areas of Substantial Unemployment.

Implications for Idaho businesses

The stable unemployment rate at 3.6% suggests Idaho's labor market remains tight, creating challenges for businesses seeking to hire. With labor force participation declining, employers face a smaller pool of available workers.

The divergent regional trends matter for businesses considering expansion or relocation within Idaho. Coeur d'Alene's 0.5% monthly job gain in April signals stronger near-term momentum than Twin Falls, which saw no change. Year-over-year figures tell a different story, with Lewiston leading at 1.4% growth while Pocatello declined 1.5%.

Construction's 0.9% monthly gain in March aligns with Idaho's continued housing and commercial development activity. The 14.4% year-over-year decline in Arts, Entertainment and Recreation employment may reflect seasonal adjustment challenges or structural shifts in that sector.

For businesses dependent on federal contracts or grants, the 6.2% year-over-year decline in Federal Government employment represents a potential headwind. State Government employment fell 1.9% over the same period.

The shrinking labor force participation rate — down to 62.2% in April from 62.4% in March — means fewer Idahoans are working or actively seeking work. That trend, which the Idaho Department of Labor ties to a national pattern since November 2025, may force businesses to raise wages, increase automation, or adjust service levels.

Idaho's unemployment rate has held at or near 3.6% for most of the past year, matching the state's April 2025 figure. That stability, combined with a rate well below the 4.3% national average, positions Idaho as a competitive location for businesses prioritizing access to employed workers over a large pool of job seekers.

The Idaho Department of Labor is scheduled to release May 2026 labor force and nonfarm jobs data June 18, 2026, according to the agency's release calendar.