Vermont Labor Force Drops by 10,000 in One Year

The civilian labor force in Vermont shrank by nearly 10,000 people over the past year. This decline represents an almost 3% decrease in the total number of individuals participating in the state's workforce.

Despite this contraction, the state recorded 8,749 unemployed residents in September. This figure marks a slight increase from August, keeping the statewide unemployment rate steady at 2.6%. Vermont is currently tied with New Hampshire for the third-lowest unemployment rate in the nation, trailing only South Dakota and North Dakota.

Mathew Barewicz, the Economic and Labor Market Information Director at the Vermont Department of Labor, attributed the workforce decline to the ongoing retirement of baby boomers and historically low birth rates. He noted that the population entering the workforce is not as large as it has been in previous decades.

“That is a low unemployment rate and it’s been that low for a while now,” Barewicz said. He explained that the current economic shift mirrors national trends driven by aging demographics. “Vermont is experiencing the economic shift that the U.S. is starting to experience with the retiring of the baby boomers and low birth rates. The population going into the workforce is not historically as big as it has been.”

Barewicz indicated that the low unemployment rate presents mixed outcomes for the local economy. It offers opportunities for those seeking work but creates challenges for businesses attempting to expand or fill existing positions. “If you’re a job seeker or a business, that low unemployment rate can present either an opportunity or challenges,” he said.

Regional data from the report shows significant variation in employment rates across the state. Chittenden County recorded the lowest rate at 2.2%, while Orleans County reported the highest at 3.3%. Bennington County followed with a rate of 3.1%.