Montana Labor Force Peaked While Jobs Declined in 2025
The state saw its labor force reach a record high despite an annual decrease in overall job numbers.
Updated on Sept. 23, 2026 in Employment
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Montana saw its labor force grow to a record 577,800 people in 2025, a 0.1% increase over the previous year. However, the state experienced its first net decline in employment since 2020, with 1,400 jobs lost throughout the year.
Why it matters
The labor market shift was driven by a 3% increase in productivity as businesses adopted automation and labor-saving technologies. Simultaneously, job losses in sectors like mining and manufacturing, combined with a downturn in tourism, outweighed gains in healthcare.
Montana experienced a 6.9% decline in mining employment and a 3.3% drop in manufacturing jobs in the northwest region. Conversely, the healthcare sector grew by more than 1,200 positions, while the state's average annual wage rose to $62,920.
The players
Logan Health
This healthcare provider expanded through a merger with Billings Clinic in 2023 to consolidate services.
Billings Clinic
A prominent Montana healthcare system that merged with Logan Health to optimize medical facility operations.
Pyramid Mountain Lumber
This forest products company ceased operations in 2024, contributing to the decline in regional manufacturing jobs.
Roseburg Forest Products
This manufacturing entity closed its facilities in 2024, impacting the regional labor market in northwest Montana.
The details
Businesses prioritized capital investment and system consolidation to reduce staff requirements, notably in hospital facilities. Meanwhile, the broader economy faced headwinds from reduced visitation at Glacier National Park and the closure of key regional timber and lumber operations.
Timeline
Employment in Montana fell in 2025 for the first time since 2020.
Logan Health and Billings Clinic merged operations in 2023.
Pyramid Mountain Lumber and Roseburg Forest Products closed in 2024.
Montana's unemployment rate was 3.2% as of August 2026.
Macro View
Montana's economic trajectory in 2025 represents a departure from recent growth cycles, mirroring the contraction last seen during the 2020 Montana employment decline. This shift highlights a transition where productivity gains through technology began to outpace traditional job creation.
Residents may notice shifting job availability in specific industries like healthcare versus manufacturing as companies prioritize automation. While the average wage reached $62,920, the impact of these sector-specific changes may affect local household budgets and long-term career planning.
The takeaway
The rise in labor productivity suggests that Montana businesses are successfully leveraging technology to maintain output with fewer workers. Readers should monitor local sector trends to better understand how automation might influence future job security in their respective industries.
Further reading
For more information on regional workforce trends, visit Employment.
Source note: This article includes information reported by Flathead Beacon.
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