Missouri’s job market experienced a shift in January 2025, with nonfarm payroll employment declining and the unemployment rate seeing a slight increase. Below, we break down the latest employment trends, industry shifts, and labor force statistics to provide a clearer picture of Missouri’s economic landscape.
Missouri Employment Trends: January 2025
Missouri’s nonfarm payroll employment fell by 17,200 jobs in January 2025, bringing the total to 2,982,800 jobs. This decline follows a revised downward adjustment of 85,300 jobs from December 2024’s initial estimate.
Industry-Specific Changes
- Private Industry: Decreased by 18,800 jobs
- Government Employment: Increased by 1,600 jobs
Among the goods-producing industries, employment dropped by 8,600 jobs, largely driven by manufacturing, which lost 8,100 jobs. Meanwhile, private service-providing industries saw a decline of 10,200 jobs, with losses in:
- Leisure and hospitality: -3,600 jobs
- Trade, transportation, and utilities: -2,700 jobs
- Information sector: -1,600 jobs
- Professional and business services: -1,500 jobs
- Financial activities: -900 jobs
- Other services: -300 jobs
However, private education and health services experienced a modest increase of 400 jobs.
On the government side, employment increased due to gains in:
- State government: +1,400 jobs
- Local government: +300 jobs
- Federal government: -100 jobs
Year-Over-Year Employment Changes
Despite January’s decline, Missouri’s overall employment remains higher than a year ago. From January 2024 to January 2025, the state gained 10,700 jobs. Key industries with job growth include:
- Private education and health services: +18,400 jobs
- Mining, logging, and construction: +1,300 jobs
- Other services: +900 jobs
- Trade, transportation, and utilities: +700 jobs
- Financial activities: +600 jobs
Industries facing job losses include:
- Manufacturing: -9,900 jobs
- Leisure and hospitality: -5,900 jobs
- Professional and business services: -4,000 jobs
- Information: -2,900 jobs
Government employment increased significantly, adding 11,500 jobs over the past year, with state government leading the growth.
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Missouri Unemployment Rate Update
Missouri’s seasonally adjusted unemployment rate rose slightly in January 2025, reaching 3.7%, up from 3.6% in December 2024. This marks a 0.2 percentage point increase compared to January 2024’s rate of 3.5%.
- Total unemployed Missourians: 115,361 (up by 1,366 from December 2024)
- National unemployment rate (January 2025): 4.0%
- Missouri’s unemployment rate: 0.3 percentage points lower than the national rate
The not-seasonally-adjusted unemployment rate saw a larger increase, rising from 3.2% in December 2024 to 4.4% in January 2025.
Labor Force Participation & Employment-Population Ratio
Missouri’s labor force participation and employment ratios remain above national levels:
- Labor force participation rate: 63.2% (higher than the U.S. average of 62.6%)
- Employment-population ratio: 60.9% (above the U.S. average of 60.1%)
Annual Revisions for 2024 Data
With the release of January 2025 data, Missouri’s employment and unemployment figures for 2024 have undergone annual benchmarking revisions. Key changes include:
- Nonfarm payroll employment: Originally estimated to have gained 81,700 jobs from January to December 2024, now revised to a net gain of 27,900 jobs.
- Labor force participation rate: Revised to remain between 63.2% and 63.4% throughout 2024.
- Unemployment estimates: Revised unemployment figures showed higher numbers from January to June 2024, followed by lower estimates from July to December 2024.
- Missouri’s unemployment rate in 2024: Increased from 3.5% in January to 3.6% in December but remained below the national average.
Conclusion: What’s Next for Missouri’s Job Market?
While January 2025 saw a dip in employment, Missouri’s job market remains resilient with steady long-term growth in key industries like education and healthcare. However, ongoing challenges in manufacturing, hospitality, and business services could shape hiring trends moving forward.
To view the full January 2025 Missouri Job Report, click here.
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